Comstock Resources Positioned for Long-Term Upside Despite Recent Headwinds
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Comstock Resources (CRK) stock price has declined recently due to warm weather and high natural gas inventory levels. However, new LNG export facilities coming online in 2024-2026 should boost demand.
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CRK is the dominant driller in the prolific Haynesville/Bossier shale play. This provides low-cost gas supply near LNG export hubs.
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Q3 results showed improved revenue and EBITDA but lower YoY due to lower gas prices. Production increased 4% YoY.
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CRK faces no debt maturities until 2027 and has strong liquidity. The company is adding infrastructure to support output growth.
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While near-term headwinds remain, CRK offers long-term upside potential with a median price target around 30% above current levels. The stock appears oversold and may present a buying opportunity.