Comstock Resources
Posted: Sat Nov 16, 2013 2:16 pm
Comstock Resources (CRK): An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.
Comstock will be completing an estimated 15 high rate Eagle Ford wells to sales during the fourth quarter. Their crude oil production will jump from 6,870 BOPD in the 3rd quarter to approximately 8,600 BOPD for Q4 with an exit rate over 10,000 BOPD.
Late in the 2nd quarter Comstock sold their Permian Basin assets to Rosetta Resources (ROSE). The sale shored up their balance sheet and allowed them to go from three rigs to six rigs in the Eagle Ford Shale. They reported a 815 BOPD increase in oil sales from Q2 to Q3 but the BIG increases will start in Q4.
First Call is now forecasting $0.56 Adjusted Earnings per Share in 2014. I think Comstock will double that!
Cash Flow Per Share should jump to over $9/share in 2014.
I am increasing my Fair Value Estimate for CRK to $28.30/share and it will go higher if they hit my forecast exit rate of 10,000 BOPD. Comstock said on their conference call that they expect to complete a dozen high rate horizontal Eagle Ford wells to sales in December.
CRK also pays a nice dividend for annual yield ~3%.
Comstock will be completing an estimated 15 high rate Eagle Ford wells to sales during the fourth quarter. Their crude oil production will jump from 6,870 BOPD in the 3rd quarter to approximately 8,600 BOPD for Q4 with an exit rate over 10,000 BOPD.
Late in the 2nd quarter Comstock sold their Permian Basin assets to Rosetta Resources (ROSE). The sale shored up their balance sheet and allowed them to go from three rigs to six rigs in the Eagle Ford Shale. They reported a 815 BOPD increase in oil sales from Q2 to Q3 but the BIG increases will start in Q4.
First Call is now forecasting $0.56 Adjusted Earnings per Share in 2014. I think Comstock will double that!
Cash Flow Per Share should jump to over $9/share in 2014.
I am increasing my Fair Value Estimate for CRK to $28.30/share and it will go higher if they hit my forecast exit rate of 10,000 BOPD. Comstock said on their conference call that they expect to complete a dozen high rate horizontal Eagle Ford wells to sales in December.
CRK also pays a nice dividend for annual yield ~3%.