Comstock Resources (CRK) Q4 Results - Feb 18

[dan_s]

I will be updating my forecast/valuation model today for CRK. As I posted here many times, Comstock reported a big increase in production Q3 to 4 and IMO CRK is now a STRONG BUY that should be upgraded by lots of energy sector analysts.

Stifel: Comstock Resources, Inc. (CRK, $5.63, Buy; Target $8.20) -
Comstock reports strong execution, positive outlook for 2021 - Derrick Whitfield
We view this release as positive. The positives include: i) a total and equivalent gas production beat, ii) an adjusted EBITDA beat, iii) better than expected cash operating costs, and iv) better than expected capital efficiency implied in 2021 guidance. The negatives include i) lower than expected realized pricing and ii) higher than expected capex due to higher proppant intensity completions. Net-net, we expect the stock to outperform tomorrow as investors are highly focused on CRK's ability to execute and this quarter/update sets the company up well for 2021. We note CRK has underperformed its closest peers by 10-15% YTD.