Energy Prospectus

New Article on Comstock

https://seekingalpha.com/article/4618599-comstock-resources-stock-now-or-never

I will be lowering my valuations on all of our gassers (AR, CRK, EQT and RRC) in my next newsletter, but they are going to be fine. I expect them to adjust their drilling programs to live within operating cash flow.

Comstock had about 47% of their Q2 gas hedged at $3.00 and they are selling over 20% of their gas to the LNG exporters at a premium to HH gas prices. In Q1 their realized ngas price was $3.06/mcf. They should average more than $2.60/mcf for the rest of 2023, so they can adjust spending to stay within cash flow.

All of the four gassers have survived extended periods of ngas near $2.00.