Comstock out

Fraser921
Posts: 3012
Joined: Mon Mar 22, 2021 11:48 am

Comstock out

Post by Fraser921 »

Key number (for me)

Free cash flow (deficit) $ (114,904)
Q2 will be worse, imho

https://investors.comstockresources.com/news-releases/news-release-details/comstock-resources-inc-reports-first-quarter-2023-financial-and
uberCOAT
Posts: 110
Joined: Tue Jun 15, 2021 6:00 am

Re: Comstock out

Post by uberCOAT »

- Solid Results.
- Capex always higher for them at the begining of the year - this and lower pricing since last year are driving factors.
$3.14 price when the strip was much lower.
- Adjusted EBITDAX was $293 million.
- "Recently turned to sales the third successful exploratory well in our Western Haynesville exploratory play which had an initial IP rate of 36 MMcf per day" Impressive and pay attention to the Western Haynesville play folks.
- Dividend Still in tact and will continue to be.
Fraser921
Posts: 3012
Joined: Mon Mar 22, 2021 11:48 am

Re: Comstock out

Post by Fraser921 »

Any comments on negative FCF of -114.9 m or is that ok too?

EBITDA excludes interest , taxes and depr. Those aren't costs?

Why not exclude transportation , GA and marketing expenses then the look even better!
uberCOAT
Posts: 110
Joined: Tue Jun 15, 2021 6:00 am

Re: Comstock out

Post by uberCOAT »

I did comment on it and what was the driving factor. Are all companies reporting FCF this reporing period? EV/EBITDA are comparative metrics. Also, Comstock's unhedged operating margin was 72% in the first quarter of 2023 and 73% after hedging - looks pretty good to me.
uberCOAT
Posts: 110
Joined: Tue Jun 15, 2021 6:00 am

Re: Comstock out

Post by uberCOAT »

Anyone want a AUTOGRAPHED Jerry Jones Cowboy Helmet? Saw one on Ebay.

https://www.ebay.com/itm/284114418451
dan_s
Posts: 34633
Joined: Fri Apr 23, 2010 8:22 am

Re: Comstock out

Post by dan_s »

Comstock is going to be fine. They can handle a few quarters of low gas prices. HUGE upside in East Texas.
Dan Steffens
Energy Prospectus Group
Fraser921
Posts: 3012
Joined: Mon Mar 22, 2021 11:48 am

Re: Comstock out

Post by Fraser921 »

1. People were predicting positive cash flow >> FAILED and 40 m acquisition doesn't explain a FCF 110 m shortfall of 0.

2. I said wait and see with gassers and single digits in particular for CRK, not pie in the sky target prices. > ACHIEVED low of 9.75 today and i think it goes lower still

3. Record low costs for production and good hedges couldn't save them this qtr,. Next qtr is worse.

You know what they say when the short term doesn't work, say "I'm in this for the long term"

CRK is a fine company with higher NG prices, no doubt about it > I prefer to see evidence of higher prices before I commit. Sorry if this trigger's anyone, just my humble opinion.
Fraser921
Posts: 3012
Joined: Mon Mar 22, 2021 11:48 am

Re: Comstock out

Post by Fraser921 »

Cramer must be selling it, he got one from JJ last week.

And the poster said to sell anything Cramer pitches he was right, he was saying buy Crk, :lol:
Last edited by Fraser921 on Sun May 07, 2023 9:52 am, edited 1 time in total.
tlengoc
Posts: 72
Joined: Thu Feb 23, 2023 1:38 pm

Re: Comstock out

Post by tlengoc »

I'm waiting for the 200ma, then the Ted Laundry Keltner lower band for support.
ChuckGeb
Posts: 964
Joined: Thu Nov 21, 2013 2:46 pm

Re: Comstock out

Post by ChuckGeb »

Comstock could use some help making clear statements in their earnings release.

Query: "Plan to retain current quarterly dividend of 12.5 c"(ents) Does that mean they will pay it or not pay it?

"Drilled 18 (13.7) successful ....in the quarter....") and "Since the last conference call, we have connected 15 (9.8 net)....". Does the latter statement mean from the call in Feb to the release date, for the current quarter, or something else?

Listening to the conference call does not add a lot of clarity.
Post Reply