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Comstock Resources (CRK)
:CRK
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Comstock Resources (CRK) AI Stock Analysis

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CRK

Comstock Resources

(NYSE:CRK)

Rating:42Neutral
Price Target:
$17.00
▲(4.87% Upside)
Comstock Resources' overall stock score is driven by significant financial challenges and bearish technical indicators. The high leverage and declining revenues are major concerns, while recent strategic initiatives and partnerships provide some optimism. However, the market remains skeptical, as reflected in its valuation.
Positive Factors
Potential partnerships
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.
Resource potential
Successful early results on the Olajuwon Pickens #1 well should improve investors' confidence across a larger area of its Western Haynesville position.
Sustainability initiatives
Collaboration with BKV to implement carbon capture technology could make Comstock's natural gas more attractive to industrial customers.
Negative Factors
Operational challenges
CRK reduced its full year production guidance by 5.6% due to ongoing issues and delays spilling into the second half of the year.
Production guidance
CRK's 3Q25 production guidance is set at 1,200-1,300 Mmcfe/d, which is below previous estimates and consensus.
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 (CRK) vs. SPDR S&P 500 ETF (SPY)

Comstock Resources Business Overview & Revenue Model

Company DescriptionComstock 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 MoneyComstock 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: -22.03%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with significant achievements in financial performance, cost efficiency, and strategic partnerships. However, challenges such as production decline, increased drilling costs, and reduced TILs in Western Haynesville indicate operational hurdles that might impact future growth.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Natural gas and oil sales grew to $344 million, a 24% increase from the second quarter of 2024, driven by improved natural gas prices. The company generated $210 million of operating cash flow, up from a loss in the second quarter of 2024.
Western Haynesville Development
Comstock Resources expanded its Western Haynesville footprint to nearly 525,000 net acres, turning 5 new wells to sales, including some of the best wells they have ever drilled.
Cost Efficiency in Drilling
Second quarter wells in Western Haynesville were drilled and completed at an all-in cost of $2,647 per completed lateral foot, substantially less than previous years.
Partnership with NextEra Energy
Comstock is exploring the development of gas-fired power generation assets with NextEra Energy, aiming to power potential data center customers near Western Haynesville.
Negative Updates
Production Decline
Production in the second quarter averaged 1.23 Bcfe per day, 14% lower than the second quarter of 2024, reflecting a pullback in rig count and deferred completion activity.
Drilling Cost Increase in Western Haynesville
Drilling costs in the Western Haynesville increased by 36% in the second quarter due to shorter laterals and operational challenges.
Reduced 2025 Western Haynesville TILs
The number of wells turned in line (TILs) in Western Haynesville for 2025 was reduced from 17 to 13 due to delays and operational adjustments.
Company Guidance
During the Comstock Resources Second Quarter 2025 Earnings Call, the company provided detailed guidance on its operations and financial performance. Comstock's Western Haynesville footprint has expanded to nearly 525,000 net acres, with 29 wells drilled and 24 currently producing. The company highlighted the operational efficiency improvements in drilling, with costs reduced to $2,647 per completed lateral foot. Comstock's second quarter production averaged 1.23 Bcfe per day, with oil and gas sales amounting to $344 million, a 24% increase despite a 14% production decline from the previous year. Adjusted net income for the quarter was reported at $40 million or $0.13 per share. The company maintained its focus on balancing its asset development between the Western and Legacy Haynesville areas, with a plan to divest certain noncore properties to accelerate deleveraging. Financial liquidity was strong, with approximately $1.1 billion available. The guidance also indicated a continued commitment to optimizing well completions and leveraging strategic partnerships, such as the collaboration with NextEra Energy, to explore natural gas power generation opportunities near Dallas.

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
35
Negative
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
45
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.65B1.25B1.57B3.63B1.85B858.20M
Gross Profit524.36M-130.06M266.24M2.33B1.10B195.08M
EBITDA684.05M638.19M1.02B2.06B457.55M590.31M
Net Income-72.56M-218.75M211.57M1.14B-241.72M-52.42M
Balance Sheet
Total Assets6.69B6.42B6.25B5.69B4.67B4.62B
Cash, Cash Equivalents and Short-Term Investments25.86M6.80M16.67M54.65M30.66M30.27M
Total Debt3.11B3.03B2.71B2.24B2.62B2.52B
Total Liabilities4.26B4.05B3.87B3.42B3.48B3.18B
Stockholders Equity2.24B2.24B2.36B2.28B1.19B1.44B
Cash Flow
Free Cash Flow80.00M-477.14M-408.24M630.59M169.79M66.01M
Operating Cash Flow887.53M620.34M1.02B1.70B859.00M575.70M
Investing Cash Flow-806.81M-1.08B-1.42B-1.10B-550.82M-511.20M
Financing Cash Flow280.45M454.07M362.97M-576.72M-307.80M-52.76M

Comstock Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.21
Price Trends
50DMA
23.80
Negative
100DMA
22.05
Negative
200DMA
19.29
Negative
Market Momentum
MACD
-2.00
Positive
RSI
22.82
Positive
STOCH
4.40
Positive
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 16.21 is below the 20-day moving average (MA) of 20.90, below the 50-day MA of 23.80, and below the 200-day MA of 19.29, indicating a bearish trend. The MACD of -2.00 indicates Positive momentum. The RSI at 22.82 is Positive, neither overbought nor oversold. The STOCH value of 4.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRK.

Comstock Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$0.006.9917.07%2.25%16.20%-12.42%
83
Outperform
$6.11B7.0912.64%4.82%31.71%-32.13%
73
Outperform
$0.006.6125.34%5.42%26.76%-69.10%
68
Neutral
$8.48B17.9311.99%0.95%19.95%0.94%
67
Neutral
$15.04B9.957.60%5.57%4.66%-61.75%
67
Neutral
$4.13B49.423.73%38.21%-67.24%
42
Neutral
$4.81B-3.18%0.66%17.60%-385.47%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRK
Comstock Resources
16.26
6.62
68.67%
APA
APA
18.59
-8.46
-31.28%
CNX
CNX Resources
29.22
3.29
12.69%
MTDR
Matador Resources
47.80
-6.52
-12.00%
RRC
Range Resources
35.24
5.90
20.11%
CHRD
Chord Energy
106.44
-36.58
-25.58%

Comstock Resources Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Comstock Resources Approves Key Proposals at Annual Meeting
Positive
Jun 3, 2025

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.

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.Date of analysis: Aug 01, 2025