Comstock Resources (CRK) Update - May 25
Posted: Tue May 25, 2021 9:49 am
From Bloomberg
Comstock Resources bonds maturing in 2026 have returned 25% since June, aided by a rebound in natural gas prices and a $1.25 billion refinancing in 1Q that extended the company's debt-maturity profile. The leverage profile is expected by consensus and the company to improve in 2021, aided by an increase in production and hedges, which may lock in $200 million in free cash flow. Comstock may need Nymex prices of about $2.50 per 1,000 cubic feet of natural gas to generate sustainable free cash flow on its unhedged production.
Comstock’s $1.4 billion borrowing base was reaffirmed in April, reinforcing the company’s $927 million in available liquidity.
Comstock Resources bonds maturing in 2026 have returned 25% since June, aided by a rebound in natural gas prices and a $1.25 billion refinancing in 1Q that extended the company's debt-maturity profile. The leverage profile is expected by consensus and the company to improve in 2021, aided by an increase in production and hedges, which may lock in $200 million in free cash flow. Comstock may need Nymex prices of about $2.50 per 1,000 cubic feet of natural gas to generate sustainable free cash flow on its unhedged production.
Comstock’s $1.4 billion borrowing base was reaffirmed in April, reinforcing the company’s $927 million in available liquidity.