Comstock gas

Post Reply
sl6886
Posts: 138
Joined: Tue Jul 14, 2020 7:57 am

Comstock gas

Post by sl6886 »

Dan

Is there a way to know how much of Comstock's gas is sold as LNG overseas and if so, then at what price do they sell it at? Henry Hub?
Thanks
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Comstock gas

Post by Fraser921 »

They sell at HH less a basis adjustment 20 to 40 cents

The export facility chills it and sells it to a middle man at cost plus fixed fee

The middle man hires the ship and take the 1 month price risk from USA to wherever it is delivered

FLEX NG is a shipper FLNG. You can see their briefing here

https://static.seekingalpha.com/uploads ... iginal.pdf
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Comstock gas- from the call dropping rigs

Post by Fraser921 »

On dropping rigs

Well, they are definitely dropping rigs. We have talked to a few of them, not all of them, but everybody we have talked to is basically planning to drop rigs. We've already seen a few rigs dropped here just in the last two to three weeks. So I think that's how many ultimately they drop remains to be seen. But definitely, everybody that we have talked to is dropping rigs, has dropped rigs.
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Comstock gas- from the call FCF goals

Post by Fraser921 »

Comstock gas- from the call cash flow goals for the year


The Ceo said>
We're going to manage it, be that responsible in the future. So our goal is net net-net, to get quarter-by-quarter-by-quarter, if you get through 2023, and it's a soft year, our goal is to not have borrowed net at the end of next year, $0.01 from our credit facility. So you can't look at it on a 90-day basis it drives you crazy. But that's our goal.


So the goal is to have 0 FCF for the year... YUCK

The CFO added

we kind of set a goal of creating at least $0.5 billion of a cash kind of reserve that could fund acquisitions, et cetera. So I think that's kind of where we would - once we kind of have that established, then we kind of will look at other return of capital.

So translation , keep the 12.5 cent dividend and try to build cash 500 m then decide what to do with it
uberCOAT
Posts: 110
Joined: Tue Jun 15, 2021 6:00 am

Re: Comstock gas

Post by uberCOAT »

I am already loaded up on CRK and after the last conference call, I will load up even more. It appears no one understands their strategy and mid to long term upside.
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Comstock gas

Post by dan_s »

I plan to go over Comstock's forecast/valuation model on today's podcast.
Dan Steffens
Energy Prospectus Group
Post Reply