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Comstock Resources (CRK)
NYSE:CRK
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Comstock Resources
(NYSE:CRK)
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Rating:54Neutral
Price Target:
$21.50
▲(9.64% Upside)
Action:ReiteratedDate:02/12/26
The score is driven primarily by improving but still risk-leaning fundamentals: a TTM earnings rebound and solid operating cash flow are tempered by elevated leverage and negative/free-cash-flow inconsistency. Technicals are weak with the stock trading below key moving averages, and valuation looks stretched with a very high P/E. The latest earnings call adds some support via liquidity/leverage progress and flexible 2026 plans, but near-term production and commodity-price risks remain.
Positive Factors
Operating cash flow & profitability
Sustained operating cash flow and a return to positive net income provide durable internal funding for drilling, maintenance and debt reduction. Strong OCF relative to income supports reinvestment and liquidity buffers, reducing reliance on external financing over multiple commodity cycles.
Reserve additions & low finding cost
Replacing well over 100% of production at a very low finding cost indicates high capital efficiency and a sustainable resource base. Low finding costs lengthen economic life, reduce per-unit development spending, and underpin long-term production potential and margin resilience.
Strategic partnerships & midstream recapitalization
A NextEra JV and Pinnacle recapitalization diversify offtake and monetize nearby demand, creating structural optionality for gas sales and midstream value capture. These initiatives can secure differentiated demand, reduce basis risk and attract non-commodity cash flows over the medium term.
Negative Factors
Elevated leverage
Persistently elevated leverage limits strategic flexibility in a cyclical E&P business, increasing vulnerability to price downturns and raising refinancing risk. Low ROE suggests the balance sheet is not yet translating into durable shareholder returns, constraining capital allocation choices.
Negative & inconsistent free cash flow
Heavy and variable capex has produced inconsistent free cash flow, forcing reliance on asset sales or borrowings to fund growth and deleveraging. This pattern raises execution and funding risk and can delay sustainable balance-sheet repair and long-term returns.
Production decline and execution variability
A material production drop and localized well underperformance highlight execution and timing risk. Lower near-term volumes reduce cash generation and complicate leverage reduction plans, making long-term growth targets dependent on successful ramp of planned drilling and operational fixes.
Comstock Resources (CRK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.77B
Dividend YieldN/A
Average Volume (3M)2.54M
Price to Earnings (P/E)14.7
Beta (1Y)1.31
Revenue Growth35.41%
EPS GrowthN/A
CountryUS
Employees256
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.16
Shares Outstanding294,021,730
10 Day Avg. Volume1,852,661
30 Day Avg. Volume2,536,113
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)2.55
Price to Sales (P/S)3.53
P/FCF Ratio-14.99
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue4.50
Enterprise Value/Gross Profit9.36
Enterprise Value/Ebitda6.88
Forecast
1Y Price Target
$19.56Price Target Upside-0.28% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)0.9
Revenue Forecast (FY)$2.18B
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 sale of crude oil, natural gas, and natural gas liquids extracted from its production operations. The company's revenue model is heavily reliant on the commodity prices of oil and natural gas, which can fluctuate based on market demand, geopolitical events, and changes in supply. Key revenue streams include the direct sale of hydrocarbons to various customers, including utilities and industrial operators, as well as long-term contracts that may lock in prices for portions of its production. Additionally, Comstock may benefit from joint ventures or partnerships that enhance its operational capacity and resource access, contributing to its overall earnings. The company’s financial performance is also influenced by its cost management strategies and operational efficiency in extracting resources.
Comstock Resources Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by business segments, highlighting which areas are driving growth and which may need strategic adjustments. This insight helps assess the company's diversification and resilience in different market conditions.
Breaks down revenue by business segments, highlighting which areas are driving growth and which may need strategic adjustments. This insight helps assess the company's diversification and resilience in different market conditions.
Data provided by:
The Fly
The FlyComstock Resources Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
Overall the call highlighted strong financial and operational progress: robust cash flow and EBITDAX, substantial reserve additions at a low finding cost, successful asset sales that materially improved liquidity and leverage, and strategic initiatives (NextEra data center JV and Pinnacle recapitalization) that support long-term growth. Key challenges include a meaningful production decline in 2025 (-14% YoY), some Q4 drilling/ completion cost increases and localized well underperformance (water handling), and near-term timing volatility tied to weather and gas prices. Management emphasized flexibility to scale activity with prices and multiple initiatives to lower future D&C costs, which supports a constructive outlook despite near-term operational headwinds.Q4-2025 Updates
Positive Updates
Strong cash generation and profitability (Q4 and 2025)
Q4 oil & gas sales grew to ~$365M and operating cash flow was $222M ($0.75/share). Adjusted EBITDAX for Q4 was $277M and adjusted net income was $46M ($0.16/share). For full-year 2025, oil & gas sales rose 15% to $1.40B, EBITDAX totaled $1.10B and operating cash flow was $861M.
Major divestitures and balance sheet improvement
Completed $445M of divestitures in Q3–Q4 2025 (including Shelby Trough sale with $417M net proceeds), recognized a pretax gain of ~$292M, used proceeds to reduce borrowings and reduce revolver borrowings to $260M. Liquidity built to nearly $1.3B and LTM leverage improved to 2.6x.
Significant reserve additions and low finding cost
2025 drilling-related proved reserve additions of ~1.1 Tcfe replaced 229% of 2025 production; proved reserves totaled ~7.2 Tcfe (NYMEX-adjusted) and grew ~8% excluding asset sales. Overall finding cost was $1.02 per Mcfe for 2025.
Drilling activity and well productivity (2025)
Drilled 52 gross (44.2 net) successful operated Haynesville/Bossier wells in 2025 with an average IP of 27 MMcf/d. Legacy Haynesville: 35 wells turned to sales with average lateral 11,738 ft and average IP ~25 MMcf/d. Western Haynesville: turned 12 wells to sales with average lateral 8,399 ft and average IP ~29 MMcf/d.
Lower full-year drill-and-complete costs vs. 2024
Total 2025 drill-and-complete cost averaged $1,347/ft, ~11% lower than 2024 average of $1,510/ft, and company emphasized several ongoing efficiency initiatives (additional frac fleet, rotary steerable trials, insulated drill pipe, rig & frac upgrades).
High operating efficiency and margin
Q4 operating cost per Mcfe averaged $0.77 and EBITDAX margin was 77% (up 3 percentage points vs. Q3), with small improvements in lifting cost and production/ad valorem taxes.
Strategic partnership for data centers and midstream development
Announced partnership with NextEra for a Western Haynesville data center project (initial behind-the-meter generation 2 GW, expandable to 8 GW). Also planning Pinnacle Gas Services recapitalization (new credit facility and equity sale) to support midstream growth tied to Western Haynesville development.
Outstanding shareholder returns
Comstock reported the highest total shareholder return among public E&P companies over the last two years at 162% (roughly double the second highest), highlighting strong market performance.
Negative Updates
Production decline (2025)
Average production for 2025 and Q4 was ~1.2 Bcfe/d, representing a 14% decline year-over-year versus 2024. Management expects production to be down in early 1Q 2026 with recovery and growth later in the year.
Q4 and Western drilling cost increases and operational pacing issues
Benchmark long-lateral drilling cost in Q4 rose to $681/ft (+22% QoQ) and completion cost to $721/ft (+7.5% QoQ) due to shorter laterals, extra casing (Visionia Gas Storage Field wells) and three horseshoe wells. Western Haynesville drilling cost averaged $1,489/ft (+7.5% QoQ) and drilling pace slowed (Western average 499 ft/day, -3% QoQ; legacy 893 ft/day, -11% vs prior).
Operational underperformance on some wells (water handling)
Certain Western Haynesville wells (e.g., Brown TrueHeart BB) underperformed on IP due to high water production during flowback; example two-well pad had one well IP ~30 MMcf/d and the other ~22 MMcf/d with elevated early water handling impacting peak rates.
One-time items and impairment
Reported a $29M impairment on nonoperated Eagle Ford acreage and included unusual items in Q4 and full-year results (pretax asset-sale gain ~$292M, hedge MTM gains of $37M in Q4/$62M full-year), requiring adjusted results to show underlying operating comparables (adjusted net income Q4 $46M).
Commodity price volatility and hedging impact
Q4 NYMEX averaged $3.55/MMBtu with Henry Hub spot $3.69 but company realized ~$3.29 (basis and hedges lowered realized price to ~$3.27); 57% hedged in Q4 reduced upside to realized prices. Management flagged volatile 2026 gas prices and potential to flex capital if prices disappoint.
Near-term timing disruptions to 1H 2026 activity
Winter storms and completion timing led to some completion activity pushouts in early 2026; management noted a noisy 1Q with some expected bleeding into 2Q and indicated production cadence uncertainty tied to timing of turn-ins and weather.
Company Guidance
Comstock’s 2026 guidance centers on a nine‑rig program (four operated rigs in the Western Haynesville and five in the legacy Haynesville) to drill ~66 wells (19 Western, 47 legacy) and turn ~72 wells to sales (24 Western, 48 legacy), pacing roughly two Western wells and four legacy wells per month with production and EBITDAX growth skewed to the back half of the year; the company highlights financial flexibility with ~ $1.3B liquidity, $260M revolver borrowings outstanding, a $2.0B borrowing base ( $1.5B committed) and a LTM leverage of 2.6x that it expects to improve. It plans to commercialize the NextEra data‑center project in 2026 (initial 2 GW, expandable to 8 GW), recapitalize Pinnacle Gas Services with a new bank facility and an equity sale to redeem preferred units, run three full‑time frac fleets in the legacy play, upgrade a Western rig to 10,000‑psi by late summer and a frac fleet to 20,000‑psi, deploy rotary‑steerable tools, target drill‑time reductions of ~2 weeks and incremental drilling‑cost savings of ~$300/ft, and retain the ability to flex activity (can idle up to ~4 rigs on short notice) if gas prices or conditions change.Comstock Resources Financial Statement Overview
Summary
Profitability has rebounded in the TTM with revenue up ~24% and a return to positive operating profit/net income, supported by operating cash flow exceeding net income. Offsetting this, leverage remains elevated (~1.36x debt/equity) with low ROE (~3%), and free cash flow is negative and inconsistent, which increases funding and cyclical risk.Income Statement
TTM (Trailing-Twelve-Months) results show a sharp rebound with revenue up about 24% and a return to solid profitability (positive operating profit and net income). However, profitability looks less durable than prior peaks: net margin is modest (~4%) versus much stronger levels in 2022, and the company has shown meaningful earnings volatility across the cycle (losses in 2024 and 2021).66
Positive
Balance Sheet
Leverage remains elevated with debt running at roughly 1.36x equity in TTM (Trailing-Twelve-Months), limiting flexibility in a cyclical commodity business. Equity has improved versus earlier years, but returns on equity are currently low (~3% TTM), suggesting the balance sheet is not yet translating into strong shareholder returns and remains sensitive to downturns.55
Neutral
Cash Flow
Operating cash generation is healthy in TTM (Trailing-Twelve-Months) (operating cash flow exceeds net income), but free cash flow is negative, indicating heavy capital spending and weaker near-term cash yield. Free cash flow has also been inconsistent over time (strongly positive in 2022, negative in 2023–TTM), which raises risk around funding needs and deleveraging pace.49
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.91B | 1.25B | 1.57B | 3.63B | 1.85B |
| Gross Profit | 411.54M | -130.06M | 266.24M | 2.33B | 1.10B |
| EBITDA | 1.37B | 638.19M | 1.02B | 2.06B | 457.55M |
| Net Income | 395.61M | -218.75M | 211.89M | 1.14B | -241.72M |
Balance Sheet | |||||
| Total Assets | 7.01B | 6.38B | 6.25B | 5.69B | 4.67B |
| Cash, Cash Equivalents and Short-Term Investments | 23.93M | 6.80M | 16.67M | 54.65M | 30.66M |
| Total Debt | 2.95B | 3.03B | 2.71B | 2.25B | 2.62B |
| Total Liabilities | 4.04B | 4.05B | 3.87B | 3.42B | 3.48B |
| Stockholders Equity | 2.65B | 2.24B | 2.36B | 2.28B | 1.19B |
Cash Flow | |||||
| Free Cash Flow | -449.67M | -477.14M | -408.24M | 630.59M | 169.79M |
| Operating Cash Flow | 899.61M | 620.34M | 1.02B | 1.70B | 859.00M |
| Investing Cash Flow | -915.41M | -1.08B | -1.42B | -1.10B | -550.82M |
| Financing Cash Flow | 32.93M | 454.07M | 362.97M | -576.72M | -307.80M |
Comstock Resources Technical Analysis
Negative
19.61
Price Trends
21.65
Negative
21.81
Negative
21.35
Negative
Market Momentum
-0.95
Positive
45.25
Neutral
37.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRK, the sentiment is Negative. The current price of 19.61 is below the 20-day moving average (MA) of 20.17, below the 50-day MA of 21.65, and below the 200-day MA of 21.35, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 37.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRK.
Comstock Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.39B | 8.43 | 14.13% | 3.14% | 14.77% | -17.38% | |
75 Outperform | $6.16B | 146.74 | 0.53% | 5.73% | 8.43% | -86.63% | |
74 Outperform | $10.73B | 7.60 | 25.22% | 3.80% | 4.88% | -41.34% | |
72 Outperform | $9.72B | 15.07 | 15.91% | 1.00% | 23.88% | 20.55% | |
66 Neutral | $5.95B | 11.38 | 15.01% | ― | 43.30% | -43.07% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
54 Neutral | $5.77B | 14.72 | 16.07% | ― | 35.41% | ― |
* Energy Sector Average
CRK
Comstock Resources
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8.94%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.