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Comstock Resources (CRK)
NYSE:CRK
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Comstock Resources
(NYSE:CRK)
47Neutral
Positive Factors
Exploration Success
Successful early results on the Olajuwon Pickens #1 well should improve investors' confidence across a larger area of its Western Haynesville position.
Technological Advancements
Collaboration with BKV to implement carbon capture technology could make Comstock's natural gas more attractive to industrial customers.
Negative Factors
Capital Expenditure
2Q25 production guidance is set below expectations with a total capex significantly above estimates.
Financial Performance
CRK's leverage is more than double peer levels, making meaningful shareholder returns unlikely until 2027.
Comstock Resources (CRK) vs. S&P 500 (SPY)
Market Cap
$7.10B
Dividend Yield0.66%
Average Volume (3M)2.42M
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth-1.73%
EPS Growth-608.98%
CountryUS
Employees256
SectorEnergy
Sector Strength45
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.18
Shares Outstanding292,917,820
10 Day Avg. Volume2,200,868
30 Day Avg. Volume2,415,402
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)2.91
Price to Sales (P/S)0.00
P/FCF Ratio-14.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.00Price Target Upside-19.87% Downside
Rating ConsensusHold
Number of Analyst Covering9
Comstock Resources Business Overview & Revenue Model
Company DescriptionComstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of oil and natural gas primarily in North Louisiana and East Texas, the United States. As of December 31, 2021, the company had 6.1 trillion cubic feet of the natural gas equivalent of proved reserves. It also owns interests in 2,557 producing oil and natural gas wells. The company was incorporated in 1919 and is headquartered in Frisco, Texas.
How the Company Makes MoneyComstock Resources generates revenue primarily through the production and sale of natural gas. The company's revenue model revolves around extracting natural gas from its extensive assets in the Haynesville shale and selling it to various markets. Key revenue streams include the direct sale of natural gas to industrial, commercial, and residential consumers, as well as entering into long-term contracts with utility companies and other energy providers. Comstock's earnings are significantly influenced by natural gas prices, production volume, and its ability to manage operational costs effectively. Additionally, strategic partnerships and joint ventures with other energy companies can enhance its production capabilities and market reach, contributing further to its revenue.
Comstock Resources Financial Statement Overview
Summary
Comstock Resources faces significant financial challenges, with declining revenues and profitability issues impacting its income statement. The balance sheet is heavily leveraged, increasing financial risk in a cyclic industry. While operating cash flow remains a relative strength, negative free cash flow highlights a dependency on external financing to sustain operations and investments. The company needs to address its financial structure and improve operational efficiencies to weather industry volatility.Income Statement
Comstock Resources has struggled with profitability, as evidenced by negative net income in recent periods. The TTM (Trailing-Twelve-Months) shows a significant drop in total revenue compared to previous years, leading to negative EBIT and EBITDA margins. The revenue growth rate is negative, indicating a decline in sales performance. Margins have also contracted significantly, pointing to operational inefficiencies or market challenges.35
Negative
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, reflecting significant leverage which could pose financial risks, especially in volatile markets. The equity ratio is stable, suggesting a balanced asset structure, but return on equity has been negative, indicating that equity is not generating adequate returns due to net losses.45
Neutral
Cash Flow
Operating cash flow has been relatively stable, providing some financial cushion for operations. However, free cash flow has been negative, raising concerns about the company's ability to fund its capital expenditures without additional financing. The operating cash flow to net income ratio is favorable, but the free cash flow to net income ratio is concerning.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.43B | 1.25B | 1.57B | 3.63B | 1.85B | 858.20M | Gross Profit |
| 340.30M | -130.06M | 266.24M | 2.33B | 1.10B | 195.08M | EBIT |
| -29.60M | -168.62M | 226.47M | 2.28B | 900.77M | 163.03M | EBITDA |
| 275.09M | 638.19M | 1.02B | 2.06B | 457.55M | 590.31M | Net Income Common Stockholders |
| -323.71M | -218.75M | 211.57M | 1.14B | -241.72M | -52.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 32.88M | 6.80M | 16.67M | 54.65M | 30.66M | 30.27M | Total Assets |
| 6.60B | 6.42B | 6.25B | 5.69B | 4.67B | 4.62B | Total Debt |
| 3.15B | 3.03B | 2.71B | 2.24B | 2.62B | 2.52B | Net Debt |
| 3.12B | 3.02B | 2.70B | 2.19B | 2.59B | 2.49B | Total Liabilities |
| 4.32B | 4.05B | 3.87B | 3.42B | 3.48B | 3.18B | Stockholders Equity |
| 2.12B | 2.24B | 2.36B | 2.28B | 1.19B | 1.44B |
| Cash Flow | Free Cash Flow | ||||
| -420.73M | -477.14M | -408.24M | 630.59M | 169.79M | 66.01M | Operating Cash Flow |
| 623.54M | 620.34M | 1.02B | 1.70B | 859.00M | 575.70M | Investing Cash Flow |
| -725.04M | -1.08B | -1.42B | -1.10B | -550.82M | -511.20M | Financing Cash Flow |
| 276.62M | 454.07M | 362.97M | -576.72M | -307.80M | -52.76M |
Comstock Resources Technical Analysis
Positive
23.71
Price Trends
19.98
Positive
19.44
Positive
15.77
Positive
Market Momentum
1.34
Negative
66.27
Neutral
88.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRK, the sentiment is Positive. The current price of 23.71 is above the 20-day moving average (MA) of 21.11, above the 50-day MA of 19.98, and above the 200-day MA of 15.77, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 88.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRK.
Comstock Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.58B | 6.48 | 12.64% | 5.22% | 31.71% | -32.13% | |
78 Outperform | $5.58B | 5.98 | 19.20% | 2.16% | 21.73% | 1.48% | |
73 Outperform | $4.36B | 11.23 | 20.85% | 2.38% | 8.78% | 0.56% | |
63 Neutral | $3.49B | 16.69 | -16.01% | ― | 10.44% | -139.05% | |
62 Neutral | $4.78B | 9.01 | -7.30% | ― | 22.23% | -130.65% | |
57 Neutral | $7.13B | 3.45 | -3.67% | 5.68% | 0.46% | -50.35% | |
47 Neutral | $7.10B | ― | -14.17% | 0.66% | -1.73% | -608.98% |
* Energy Sector Average
Performance Comparison
CRK
Comstock Resources
23.71
12.36
108.90%
CNX
CNX Resources
32.46
7.95
32.44%
MTDR
Matador Resources
44.29
-16.81
-27.51%
MGY
Magnolia Oil & Gas
22.36
-2.76
-10.99%
CHRD
Chord Energy
95.03
-76.72
-44.67%
GPOR
Gulfport Energy
194.55
34.23
21.35%
Comstock Resources Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 29.78%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. The successful Olajuwon well and improved financial performance highlight the company's strategic successes in the Western Haynesville. However, production decline, losses in gas marketing, and increased operating costs present significant challenges.Q1-2025 Updates
Positive Updates
Successful Olajuwon Well
The Olajuwon well, located in Freestone County, was turned to sales with an initial production rate of 41 million cubic feet per day. This major step out is 24.4 miles away from the nearest producing well and confirms the geological success of the Western Haynesville play.
Improved Financial Performance
Natural gas and oil sales increased to $405 million, driven by higher natural gas prices. The company generated $239 million of operating cash flow and reported an adjusted net income of $53.8 million, compared to a loss in Q1 2024.
Drilling and Cost Efficiency
The drilling group has significantly reduced well costs and improved efficiencies, with the average lateral length for wells increasing and drilling costs per foot decreasing by 21% from the fourth quarter.
Strong Liquidity Position
Comstock ended the quarter with $510 million of borrowings, $3.1 billion in total debt, and $1 billion of liquidity. The borrowing base was reaffirmed at $2 billion.
Environmental Initiatives
The company reported a 28% improvement in greenhouse gas intensity and a 2.5% improvement in methane emission intensity from 2023. A partnership with BKV Corporation was announced to develop carbon capture projects.
Negative Updates
Production Decline
Production in Q1 2025 averaged 1.28 Bcfe per day, which is 17% lower than Q1 2024. This decline was due to the decision to drop two rigs and defer completion activity last year.
Loss in Gas Marketing
The company incurred a $16 billion loss on third-party gas marketing due to the high volatility in gas prices and obligations to fill transport.
Increased Operating Costs
Operating costs per Mcfe increased by $0.11 from the fourth quarter, with higher production and advertisement taxes, lifting costs, and gathering costs.
Company Guidance
During the Q1 2025 earnings call, Comstock Resources provided guidance highlighting several key metrics. The company reported natural gas and oil sales of $405 million, generating $239 million in operating cash flow or $0.81 per diluted share. Adjusted EBITDAX for the quarter was $293 million, with an adjusted net income of $53.8 million or $0.18 per diluted share. The company's production averaged 1.28 Bcfe per day, reflecting a 17% decrease from Q1 2024 due to strategic rig reductions and deferred completion activities. Comstock also emphasized their continued focus on the Western Haynesville play, with plans to drill 20 wells and turn 15 to sales in 2025, alongside a midstream investment of $130 to $150 million funded by partners, targeting the growing demand for natural gas driven by rising prices and expanding LNG requirements.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.