Comstock Resources (CRK) AI Stock Analysis

• Market Cap: $4.48B
• Dividend Yield: 0.66%
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 17.60%
• EPS Growth: -385.47%
• Country: US
• Employees: 256
• Sector: Energy
• Sector Strength: 62
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.13
• Shares Outstanding: 293,066,830
• 10 Day Avg. Volume: 2,523,433
• 30 Day Avg. Volume: 2,623,189
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 6.90
• Enterprise Value/Gross Profit: 21.77
• Enterprise Value/Ebitda: 16.68
• 1Y Price Target: $19.55
• Price Target Upside: 23.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 44 Neutral
• Price Target: $14.50 ▼(-8.63% Downside)

Comstock Resources' overall stock score is primarily impacted by its weak financial performance and poor technical indicators, which suggest significant challenges ahead. While the earnings call and corporate events provide some positive outlook, they are not enough to offset the financial and technical weaknesses.

Positive Factors

Carbon Capture Collaboration

Collaboration with BKV to implement carbon capture technology could make Comstock's natural gas more attractive to industrial customers.

Exploration Success

Successful early results on the Olajuwon Pickens #1 well should improve investors' confidence across a larger area of its Western Haynesville position.

Strategic Partnership

CRK announced a collaboration with NextEra Energy, Inc. to explore potential development of power generation assets, which could be positive in accelerating the massive NAV potential from its deep Haynesville inventory.

Negative Factors

Gas Price Risk

Potential downside exists from a fall in gas prices, creating higher risk due to CRK's leverage and low free cash flow.

Production Guidance

CRK reduced its full year production guidance by 5.6% due to ongoing issues and delays spilling into the second half of the year.

Valuation Concerns

CRK's valuation has expanded to a significant premium compared to its peers, which is seen as stretched without improvement in fundamentals like debt levels and free cash flow generation.

Comstock Resources Business Overview & Revenue Model

Company Description

Comstock 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 Money

Comstock Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids extracted from its properties. The company earns money by producing these resources and selling them at market prices, which can fluctuate based on supply and demand dynamics in the energy markets. Key revenue streams include direct sales to refineries, utilities, and other energy companies, as well as contracts for the transportation and processing of its products. Additionally, Comstock may engage in hedging strategies to manage price volatility and secure more predictable revenue. Strategic partnerships with other companies for joint ventures or resource sharing can also enhance production capabilities and contribute to earnings.

Comstock Resources Financial Statement Overview

Summary

Comstock Resources faces significant financial challenges. The income statement reveals declining revenues and profitability issues, with negative net income and margins. The balance sheet is heavily leveraged, posing financial risk, though operating cash flow offers some stability.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.25B	1.57B	3.63B	1.85B	858.20M
Gross Profit	524.36M	-130.06M	266.24M	2.33B	1.10B	195.08M
EBITDA	684.05M	638.19M	1.02B	2.06B	457.55M	590.31M
Net Income	-72.56M	-218.75M	211.57M	1.14B	-241.72M	-52.42M
Balance Sheet
Total Assets	6.69B	6.42B	6.25B	5.69B	4.67B	4.62B
Cash, Cash Equivalents and Short-Term Investments	25.86M	6.80M	16.67M	54.65M	30.66M	30.27M
Total Debt	3.11B	3.03B	2.71B	2.24B	2.62B	2.52B
Total Liabilities	4.26B	4.05B	3.87B	3.42B	3.48B	3.18B
Stockholders Equity	2.24B	2.24B	2.36B	2.28B	1.19B	1.44B
Cash Flow
Free Cash Flow	80.00M	-477.14M	-408.24M	630.59M	169.79M	66.01M
Operating Cash Flow	887.53M	620.34M	1.02B	1.70B	859.00M	575.70M
Investing Cash Flow	-806.81M	-1.08B	-1.42B	-1.10B	-550.82M	-511.20M
Financing Cash Flow	280.45M	454.07M	362.97M	-576.72M	-307.80M	-52.76M

Comstock Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 15.87 is below the 20-day moving average (MA) of 16.12, below the 50-day MA of 21.26, and below the 200-day MA of 19.58, indicating a bearish trend. The MACD of -1.51 indicates Negative momentum. The RSI at 34.78 is Neutral, neither overbought nor oversold. The STOCH value of 49.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTDR	81 Outperform	$6.15B	7.09	17.07%	2.44%	16.20%	-12.42%
APA	78 Outperform	$8.00B	7.26	19.09%	4.52%	12.13%	-67.53%
CHRD	77 Outperform	$6.13B	27.12	3.13%	5.04%	19.55%	-81.10%
RRC	72 Outperform	$7.96B	16.79	11.99%	1.00%	19.95%	0.94%
CNX	67 Neutral	$4.13B	49.37	3.73%	―	38.21%	-67.24%
Sector *	65 Neutral	$15.25B	7.27	3.02%	5.36%	4.27%	-62.52%
CRK	44 Neutral	$4.48B	―	-3.18%	0.66%	17.60%	-385.47%

Comstock Resources Corporate Events

Comstock Resources Approves Key Proposals at Annual Meeting

On June 3, 2025, Comstock Resources held its annual stockholders meeting where several key proposals were approved. The stockholders voted to amend the 2019 Long-term Incentive Plan by increasing available shares, extending its term, and expanding eligibility to all employees and non-employee directors. Additionally, the re-election of five board members and the ratification of Ernst & Young LLP as the independent auditor for 2025 were confirmed, indicating strong shareholder support and a strategic focus on long-term growth.