Comstock Resources (CRK) AI Stock Analysis

• Market Cap: $6.98B
• Dividend Yield: 0.66%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -1.73%
• EPS Growth: -608.98%
• Country: US
• Employees: 256
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.18
• Shares Outstanding: 292,917,820
• 10 Day Avg. Volume: 1,278,640
• 30 Day Avg. Volume: 1,805,443
• PEG Ratio: 0.40
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.43
• Price Target Upside: -18.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 52 Neutral
• Price Target: $24.00 ▲(1.05%Upside)

Comstock Resources' score is primarily influenced by financial challenges and an unfavorable valuation. Despite strategic successes and positive technical indicators, the negative P/E ratio and leverage risks weigh heavily on the overall assessment.

Positive Factors

Cost Efficiency

The company has successfully reduced drilling costs by $699 per lateral foot and completion costs by $516 per lateral foot.

Emerging Resource Potential

CRK is a pure-play natural gas company with an emerging resource in the Western Haynesville, reflecting the improving long-term demand outlook and growing resource potential.

Exploration Success

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

Negative Factors

Cash Flow Challenges

Comstock is experiencing a cash burn, anticipated to reverse by the fourth quarter, but current quarters show negative free cash flow.

Leverage Concerns

CRK's leverage is more than double peer levels, making meaningful shareholder returns unlikely until 2027.

Production and Capex Guidance

2Q25 guidance was disappointing with higher capex and lower production relative to expectations.

Comstock Resources Business Overview & Revenue Model

Company Description

Comstock Resources, Inc. is an independent energy company focused primarily on the acquisition, exploration, and development of oil and natural gas properties. Headquartered in Frisco, Texas, Comstock's operations are mainly concentrated in the prolific Haynesville shale in North Louisiana and East Texas. The company is committed to providing efficient and sustainable energy solutions, leveraging advanced technology to maximize resource recovery and operational efficiency.

How the Company Makes Money

Comstock Resources generates revenue primarily through the exploration, development, and production of natural gas and oil. The company focuses on the Haynesville shale, which is one of the most productive natural gas fields in the United States. Revenue is mainly derived from the sale of natural gas, which constitutes the majority of its production portfolio. Comstock enters into contracts with various buyers, including utilities, industrial users, and marketers, to sell its natural gas production. Additionally, the company may engage in hedging activities to manage price risks associated with market fluctuations. Strategic partnerships and joint ventures can also play a role in expanding its resource base and enhancing production capabilities, contributing to its overall earnings.

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.

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
1.43B	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

• Technical Analysis Sentiment: Positive
• Last Price: 23.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 23.75 is above the 20-day moving average (MA) of 23.56, above the 50-day MA of 21.01, and above the 200-day MA of 16.56, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRK.

Comstock Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTDR	82 Outperform	$5.45B	5.84	19.20%	2.35%	21.73%	1.48%
CHRD	76 Outperform	$5.31B	6.16	12.64%	5.33%	31.71%	-32.13%
MGY	74 Outperform	$4.24B	10.92	20.85%	2.54%	8.78%	0.56%
CNX	64 Neutral	$4.62B	9.01	-7.30%	―	22.23%	-130.65%
GPOR	63 Neutral	$3.48B	16.69	-16.01%	―	10.44%	-139.05%
Sector *	57 Neutral	$7.22B	3.11	-4.49%	5.63%	0.82%	-49.15%
CRK	52 Neutral	$6.98B	―	-14.17%	0.66%	-1.73%	-608.98%

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.

The most recent analyst rating on (CRK) stock is a Sell with a $9.00 price target. To see the full list of analyst forecasts on Comstock Resources stock, see the CRK Stock Forecast page.