Comstock Resources (CRK) Update - Aug 11
Posted: Sun Aug 11, 2019 6:19 pm
I have updated my forecast/valuation model for Comstock and posted it to the EPG website.
Nobody likes a "gasser" these days, but CRK is a VERY INTERESTING company with lots of upside for us if natural gas prices just stabilize.
> They closed the merger with Covey Park on 7/16/2019 that more than doubles their production.
> Jerry Jones owns the controlling interest in CRK and his wealth is backing this company.
> CRK owns "core of the core" leasehold in the Haynesville where wells are economic even at today's low gas price.
> Production should exceed 1.2 Bcfpd by year-end.
> This company has a rock solid management team.
My valuation of $10/share compares to First Call's target price of $9.30.
Nobody likes a "gasser" these days, but CRK is a VERY INTERESTING company with lots of upside for us if natural gas prices just stabilize.
> They closed the merger with Covey Park on 7/16/2019 that more than doubles their production.
> Jerry Jones owns the controlling interest in CRK and his wealth is backing this company.
> CRK owns "core of the core" leasehold in the Haynesville where wells are economic even at today's low gas price.
> Production should exceed 1.2 Bcfpd by year-end.
> This company has a rock solid management team.
My valuation of $10/share compares to First Call's target price of $9.30.