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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on CRK

Breaking News: Comstock Resources Inc has been in focus amid a 60% plunge in natural gas prices to near $3. Despite this decline, tight storage and strong LNG demand are expected to drive a potential rebound. Analysts are keeping an eye on CRK along with WMB and EXE. The recent natural gas price collapse has raised questions about investment opportunities in the sector. Some analysts recommend buying natural gas stocks after the significant price drop. CRK remains a key player in the market with its operations in natural gas.

1.c. Company Highlights

2. Comstock Resources' Q4 2025 Earnings: A Strong Performance

Comstock Resources reported a robust financial performance in Q4 2025, with natural gas and oil sales reaching $365 million. The company's adjusted net income came in at $46 million, or $0.16 per share, beating estimates of $0.11 per share. Adjusted EBITDAX was $277 million, indicating a healthy margin. For the full year 2025, Comstock's production averaged 1.2 Bcfe per day, a 14% decrease from 2024, while oil and gas sales increased 15% to $1.4 billion. As Jay Allison, Chairman and CEO, highlighted, the company achieved significant milestones, including adding three operated rigs and drilling 52 successful operated Haynesville/Bossier wells.

Publication Date: Feb -18

📋 Highlights
  • Reserve Replacement Rate:: Achieved 229% replacement rate of proved reserves in 2025, adding 1.1 TCF, primarily from Western Haynesville drilling.
  • 2025 Financial Performance:: Reported $1.4 billion in oil/gas sales (+15% YoY), $1.1 billion EBITDAX, and $396 million net profit ($1.43/share), including $292 million pretax gain on property sales.
  • Drilling Efficiency:: D&C costs decreased 11% to $1,347/foot in 2025, with plans to further reduce costs via rotary steerable drilling systems and high-pressure rigs in 2026.
  • Liquidity & Balance Sheet:: Maintained $1.3 billion liquidity and 2.6x leverage ratio, with $1.5 billion credit facility and $260 million borrowings outstanding.
  • 2026 Growth Plans:: Targeting 19+47 wells in Western/Legacy Haynesville, commercializing a data center project, and midstream recapitalization to drive free cash flow positivity by mid-2026.

Operational Highlights

The company's drilling performance was affected by factors such as vertical depths, temperatures, and lateral lengths. Comstock's D&C costs for the fourth quarter were $0.77 per Mcfe, with an EBITDAX margin of 77%. The company is undertaking measures to reduce costs, including upgrading one of its Western Haynesville rigs to a 10,000 PSI pressure rating and rolling out rotary steerable drilling system trials.

Valuation and Outlook

With a P/E Ratio of 13.65 and an EV/EBITDA of 8.66, Comstock's valuation appears reasonable. Analysts estimate next year's revenue growth at 17.3%, indicating a positive outlook. The company's strong balance sheet, with $1.3 billion in liquidity and a leverage ratio of 2.6 times, positions it well for future growth. As Comstock continues to focus on drilling and production in the Haynesville and Bossier Shales, its commitment to creating value for equity stakeholders is evident.

Growth Prospects

Comstock's proved reserves at year-end 2025 totaled 7.2 Tcfe, with an 8% increase in 2025 reserves. The company's drilling inventory consists of 1,009 gross locations and 785 net locations in the legacy Haynesville area and 3,343 gross locations and 2,561 net locations in the Western Haynesville area. With a strong foundation in place, Comstock is poised for continued growth and success.

3. NewsRoom

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Comstock Resources: Attempting To Rebuild Production With Increased Spending

Feb -21

Source: seekingalpha.com

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Should Investors Buy Natural Gas After a 60% Price Collapse?

Feb -18

Source: zacks.com

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Comstock Resources, Inc. (CRK) Q4 2025 Earnings Call Transcript

Feb -16

Source: seekingalpha.com

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Comstock Resources: Cost Progress In The Western Haynesville

Feb -16

Source: seekingalpha.com

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Comstock Resources, Inc. (NYSE:CRK) Receives Average Recommendation of “Reduce” from Analysts

Feb -14

Source: defenseworld.net

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Comstock Beats Q4 Earnings Estimates on Higher Gas Price Realizations

Feb -12

Source: zacks.com

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Comstock (CRK) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -12

Source: zacks.com

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Comstock Resources (CRK) Q4 Earnings and Revenues Top Estimates

Feb -11

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.80%)

6. Segments

Natural Gas

Expected Growth: 12%

Comstock Resources, Inc.'s 12% growth in Natural Gas is driven by increasing demand from power generation and industrial sectors, coupled with strategic acquisitions and exploration activities in the Haynesville Shale region. Additionally, improved operational efficiencies and cost reductions have enhanced profitability, supporting the company's growth momentum.

Gas Services

Expected Growth: 11%

Comstock Resources' 11% growth in Gas Services is driven by increasing demand for natural gas, strategic acquisitions, and operational efficiencies. The company's focus on the Haynesville shale play, where it has a significant presence, has contributed to its growth. Additionally, Comstock's efforts to reduce costs and improve well productivity have enhanced its competitiveness, leading to increased market share and revenue growth.

Oil

Expected Growth: 10%

Comstock Resources, Inc.'s 10% growth in oil production is driven by increased drilling activities in the Haynesville shale, improved operational efficiencies, and strategic acquisitions. Additionally, rising crude oil prices and growing demand for energy also contribute to the growth. Furthermore, the company's focus on cost reduction and capital discipline enables it to maintain a competitive edge in the market.

7. Detailed Products

Natural Gas

Comstock Resources, Inc. is a leading independent oil and gas company that explores, develops, and produces natural gas from its properties located in Texas, Louisiana, and Mississippi.

Crude Oil

Comstock Resources, Inc. also produces crude oil from its properties, which is refined into various petroleum products such as gasoline, diesel fuel, and jet fuel.

Natural Gas Liquids (NGLs)

Comstock Resources, Inc. produces NGLs, which are a group of hydrocarbons that are extracted from natural gas and used as a feedstock for petrochemicals and as a fuel.

8. Comstock Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Comstock Resources, Inc. is medium due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

The bargaining power of customers for Comstock Resources, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Comstock Resources, Inc. is medium due to the company's dependence on a few key suppliers for equipment and services.

Threat Of New Entrants

The threat of new entrants for Comstock Resources, Inc. is high due to the relatively low barriers to entry in the oil and gas industry.

Intensity Of Rivalry

The intensity of rivalry for Comstock Resources, Inc. is high due to the highly competitive nature of the oil and gas industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.04%
Debt Cost 7.26%
Equity Weight 46.96%
Equity Cost 7.48%
WACC 7.37%
Leverage 112.96%

11. Quality Control: Comstock Resources, Inc. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EQT

A-Score: 5.4/10

Value: 5.4

Growth: 3.2

Quality: 6.6

Yield: 2.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Range Resources

A-Score: 5.2/10

Value: 6.0

Growth: 3.2

Quality: 6.9

Yield: 1.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Antero Resources

A-Score: 4.7/10

Value: 6.2

Growth: 3.8

Quality: 5.2

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Southwestern Energy

A-Score: 3.9/10

Value: 5.1

Growth: 1.6

Quality: 4.7

Yield: 3.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Comstock Resources

A-Score: 3.7/10

Value: 2.0

Growth: 2.1

Quality: 4.3

Yield: 1.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Kosmos Energy

A-Score: 3.3/10

Value: 9.8

Growth: 5.2

Quality: 3.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.97$

Current Price

19.97$

Potential

-0.00%

Expected Cash-Flows