12 stories mentioning CRKUpdated 1d ago
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Comstock Resources (CRK) reported Q2 adjusted earnings late Wednesday of $0.03 per share, down from $0.12 a year earlier.Analysts polled by FactSet expected $0.02.Revenue for the quarter ended June 30 fell to $353.3 million from $470.3 million a year earlier.Analysts surveyed by FactSet expected $419.2 million.
UBS maintained its bullish outlook for oil and natural gas, saying it expects 2027 prices to top what the current futures price would suggest even as volatility prompted it to stress-test energy stocks under multiple price scenarios, the bank said in a note on Tuesday.The analysis looked at oil prices ranging from $55-$65 per barrel for Brent crude and corresponding WTI prices of about $51-$61/bbl, along with natural gas prices between $2.75 and $4.25 per million British thermal units.UBS assumed companies would keep spending and production levels unchanged across all scenarios.UBS said current share prices for US oil and gas producers imply investors are expecting WTI crude prices in the low $60s/bbl and natural gas prices of about $3.50/MMBtu in 2027.In a scenario where Brent crude averages $75/bbl and natural gas averages $3.75/MMBtu, UBS believes the sector appears undervalued. Based on historical valuation levels, the bank estimates energy stocks could have over 20% upside.The bank also said energy company valuations are highly sensitive to changes in commodity prices. A $10/bbl move in oil prices and a $0.50 change in natural gas prices would have a significant impact on companies' cash flow and valuations.UBS added that if oil prices fall below $60/bbl and natural gas prices below $3/MMBtu many producers would likely reduce drilling activity and production.Despite higher oil prices since the recent conflict began, energy stocks have lagged the broader market. The S&P 500 Energy Index has gained 8% but has underperformed the broader S&P 500 by about 3 percentage points.Front-month WTI crude prices have risen 22%, while contracts for 2027 delivery are up 15%. Longer-dated natural gas prices, however, have fallen 10%.Among the companies UBS follows, SM Energy (SM) and Chord Energy (CHRD) have posted the strongest gains since the conflict began, while Liberty Energy (LBRT), Comstock Resources (CRK) and Gulfport Energy (GPOR) have been the weakest performers.Smaller and mid-sized oil producers have generally outperformed their larger peers, UBS said.UBS maintained its preferred exploration and production stocks as Ovintiv (OVV), Devon Energy (DVN) and Antero Resources (AR), while naming National Energy Services Reunited (NESR) as its top pick among oilfield services companies.Price: $29.40, Change: $-0.90, Percent Change: -2.97%
Energy investors are looking beyond US shale producers toward offshore drilling, Canadian oil companies, and global energy firms as the North American shale industry enters a more mature phase, TPH Energy strategists said in a note on Monday.TPH analysts said after meetings with institutional investors in Toronto and New York, discussions were dominated by the outlook for natural gas, crude prices, and the long-term positioning of energy service companies following recent volatility in oil markets.The analysts said gas markets are a key focus among investors, with focus centered on the timing of a potential recovery and regional supply-demand dynamics across areas, including the Waha hub in Texas, the Gulf Coast, the US Northeast and Canada.TPH said among gas-focused stocks, EQT (EQT) and Expand Energy (EXE) attracted the most investor attention, while Canada's Tourmaline Oil, Antero Resources (AR), Range Resources (RRC) and Comstock Resources (CRK) featured in discussions.On crude markets, investors are assessing a reversal in prices following the Middle East conflict, as well as the factors that provided unexpected support to oil prices, including weaker-than-expected Chinese demand and opaque inventory movements.However, TPH said that concerns over a potential supply surplus have resurfaced, driven by stronger-than-expected US production growth and rising output discussions around Argentina, the UAE and Iraq.Shale is structurally maturing, Jeoffrey Lambujon, analyst at TPH Energy, said, adding that the trend could encourage investors to diversify toward Canadian producers, international operators and offshore projects.Oil-focused discussions covered US producers including Diamondback Energy (FANG), Devon Energy (DVN), ConocoPhillips (COP) and Ovintiv (OVV), together with Canadian firms including Suncor Energy (SU), Cenovus Energy (CVE), Canadian Natural Resources (CNQ) and Imperial Oil (IMO).Global oil majors including Chevron (CVX), Exxon Mobil (XOM) and BP (BP) were also discussed, with investors focusing on inventory levels, capital allocation strategies, growth opportunities, mergers and acquisitions, and regulatory progress affecting Canadian oil sands producers.Meanwhile, though crude price volatility has kept some investors on the sidelines, interest in the oil services sector remains strong, particularly among investors seeking exposure to longer-term offshore and international growth trends.Jeff LeBlanc, analyst at TPH, said that US shale's maturation and continued efficiency gains lead many investors to prefer offshore and international names over US pure plays.Offshore drilling firms attracted attention in nearly every investor meeting, with clients broadly agreeing that the sector benefits from structural supply constraints and improving fundamentals.TPH said investors raised questions about near-term contract availability, companies' contracting strategies and whether day rates could rise faster than expected as utilization tightens.However, optimism around oilfield services pricing has moderated somewhat in North America, as producers have indicated that recent pricing discussions have largely been limited to consumable products rather than broad-based service cost increases.Service companies are projected to differentiate between private and publicly traded operators, with pricing negotiations set to influence H1 2026 results and expectations for 2027 as new bidding cycles emerge.Price: $189.71, Change: $+2.33, Percent Change: +1.24%
UBS maintained a positive long-term outlook for crude oil and natural gas, saying energy stocks remain undervalued despite improving commodity fundamentals, the firm said in a note on Monday.UBS continues to expect stronger 2027 crude oil and natural gas prices than implied by current forward strips of $71 per barrel for West Texas Intermediate and $3.35 per million British thermal units for Henry Hub.The firm assessed producers across scenarios ranging from $55-$65/bbl Brent, $51-$81/bbl WTI and $2.75-$4.25/MMBtu Henry Hub.Using an 8% free cash flow-to-enterprise value yield and a 5.5x enterprise value-to-EBITDA sector midpoint, UBS estimates exploration and production stocks currently reflect $60 WTI and $3.50 Henry Hub for 2027.Under a $75 Brent and $3.75 Henry Hub scenario, oil producers would generate an average 12.2% free cash flow-to-enterprise value yields and trade at 3.9x enterprise value-to-EBITDA.Gas producers, excluding Comstock Resources (CRK), would generate an average 11.5% free cash flow-to-enterprise value yield and trade at 4.6x enterprise value-to-EBITDA, UBS said.The same commodity deck would leave year-end 2027 net debt-to-EBITDA at about 0.2x to 0.3x if companies maintain current capital return programs.UBS said those valuations remain below the historical 4.5x to 6.5x range, implying more than 20% upside to the 5.5x midpoint.A $10/bbl move in crude oil and a $0.50/MMBtu change in Henry Hub prices would shift average free cash flow-to-enterprise value yields by 450 to 480 basis points.Enterprise value-to-EBITDA multiples could move 0.5x to 0.7x or more, particularly for gas producers, UBS said.UBS kept capital spending and production assumptions unchanged, although WTI prices below $60/bbl and Henry Hub prices below $3/MMBtu would likely prompt exploration and production companies to reduce both investment and output.Since the conflict began, the S&P 500 Energy Index has gained 1.3% but has trailed the broader S&P 500 by 8%. During the same period, front-month WTI has risen 16%, the 2027 WTI forward strip has gained 15%, while the 2027 Henry Hub strip has fallen 10.3%, UBS said.UBS said energy-sector valuations have weakened since the conflict began despite stronger long-term oil prices, with APA (APA) and Chord Energy (CHRD) leading gains, while Comstock Resources, Weatherford International (WFRD) and Gulfport Energy (GPOR) have posted the weakest performance.UBS continues to favor Ovintiv (OVV), Devon Energy (DVN) and Antero Resources (AR) among exploration and production companies, while National Energy Services Reunited remains its top oilfield services pick.Price: $12.87, Change: $-0.37, Percent Change: -2.79%
Comstock Resources (CRK) has an average rating of hold and mean price target of $20.12, according to analysts polled by FactSet.Price: $12.94, Change: $-0.75, Percent Change: -5.48%
Comstock Resources (CRK) said late Monday it has sold a minority equity interest in its midstream subsidiary, Pinnacle Gas Services, to some funds managed by Sixth Street.Sixth Street invested $600 million for a 27% interest, valuing Pinnacle at a $2.2 billion enterprise value, the company said.Comstock said the use of proceeds included to retire the Pinnacle preferred equity securities for $445 million, all outstanding debt at Pinnacle, and for working capital.
US natural gas markets are projected to remain a key focus for investors assessing tightening near-term fundamentals before a shift toward oversupply later in the decade, according to TPH Energy Research in a Tuesday note.Matt Portillo, analyst at TPH, said that end-of-summer 2027 gas balances will reach 4.1 trillion cubic feet, with investors increasingly focused on when to position for longer-dated holdings beyond 2028.TPH said the outlook reflects a market still supported by regional constraints and rising demand before new supply and infrastructure changes alter the trajectory.Regional pricing dynamics remain in focus, including Permian-driven growth, Waha basis spreads in 2027, and medium-term balance trends at Agua Dulce. Portillo also noted emerging structural concerns at Gillis beyond 2028 as demand-supply imbalances deepen.TPH said global gas markets could tip into oversupply by 2028, with implications for global pricing trends over the next decade. The bank sees European benchmark TTF prices potentially easing toward $6-7 per million British thermal units over time.Simultaneously, Gulf Coast supply constraints are expected to support Henry Hub prices, potentially narrowing the arbitrage between US and global gas markets by 2029.On the upstream side, investor interest centered on Antero Resources (AR), EQT Corporation (EQT), Expand Energy (EXE), Range Resources (RRC), BKV Corporation (BKV) and Comstock Resources (CRK).Midstream companies, including DT Midstream (DTM), TC Energy, Williams Companies (WMB, Energy Transfer (ET), Kinder Morgan (KMI), Cheniere Energy (LNG), and Venture Global (VG), were also widely discussed.TPH said this underscores expectations that LNG export growth and pipeline bottlenecks will remain central to market direction over the next several years.Price: $34.72, Change: $-0.80, Percent Change: -2.25%
Henry Hub natural gas prices are expected to rise toward $4.5 per million British thermal units by 2030 as Gulf Coast supply costs increase, TPH Energy Research said in a Monday note.The firm expects tightening storage levels in 2029 to narrow the spread between US and international gas prices to about $1.50/MMBtu, potentially reducing liquefied natural gas exports by 5 billion cubic feet per day by 2030.TPH said the Western Haynesville basin will play a larger role in Gulf Coast supply balances over the next decade as output from the core Haynesville declines structurally.The report forecasts more than 4 Bcf/d of supply growth from the Western Haynesville by 2040 to offset weakening production from Haynesville proper.TPH estimates core Haynesville acreage can generate solid returns at $3 to $3.25/MMBtu, while East Texas Haynesville wells require about $3.5 to $3.75/MMBtu gas prices.The firm expects Western Haynesville production growth to require materially higher prices because recent drilling results have weakened as operators expanded into less productive acreage.TPH lowered its production type curve estimate for the play to about 2.7 billion cubic feet equivalent per 1,000 feet from roughly 3.5 Bcfe per 1,000 ft after tracking about 35 industry wells.The report said 2024 wells are trending closer to 2.5 Bcfe/1000ft, while 2025 wells have weakened further as operators continue adjusting choke management and flowback assumptions.Comstock Resources (CRK), the basin's largest operator, said stronger Robertson County results showed greater variability as drilling expanded into Leon and Freestone counties, TPH Energy added.TPH estimates Western Haynesville wells require about $4/MMBtu gas prices to generate a 35% after-tax rate of return under its base production assumptions.However, weaker well performance similar to 2024 and 2025 trends could raise Western Haynesville breakeven prices to roughly $4.25 to $4.75/MMBtu.The firm estimates Comstock Resources needs about $3.75/MMBtu gas prices to maintain production within cash flow, while prices closer to $4.25/MMBtu would support high single-digit growth across its core and western acreage.A 0.5 Bcfe per 1,000 ft decline from base production assumptions would raise corporate cash flow breakeven prices by about $0.25/MMBtu.TPH expects the Western Haynesville to become increasingly important for Gulf Coast gas supply over time, while lower well costs could gradually reduce project breakeven prices as development expands.The play still requires significant resource testing to refine production assumptions across thousands of future drilling locations, while limited downspacing data continues to cloud long-term well performance estimates.Price: $14.98, Change: $+0.88, Percent Change: +6.24%
Comstock Resources (CRK) has an average rating of hold and mean price target of $20.12, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)
Upstream energy firm Comstock Resources (CRK) reported Q1 earnings Monday, showing total production of 97,919 million cubic feet equivalent, down from 115,091 MMcfe a year earlier.The company produced 97,855 MMcf of natural gas in the quarter, compared with 115,029 MMcf a year earlier, reflecting lower output due to weather-related disruptions across its operations.Comstock reported oil production of 11,000 barrels for the quarter ended March 31, up from 10,000 barrels a year earlier, it said.The firm logged average daily production of 1,088 MMcfe per day in Q1, compared with 1,279 MMcfe/d a year earlier.Comstock brought 13 operated wells to sales in Q1, including 10 Legacy Haynesville wells with initial production rates averaging 31 MMcf/d, the company said.The company also turned six Western Haynesville wells to sales with average initial production rates of 29 MMcf/d, Comstock added.Comstock expects production to rebound over the remainder of 2026, targeting full-year output of 1,250 MMcfe/d to 1,400 MMcfe/d, the company said.The company plans to drill 21 wells and bring 20 wells to sales in the Western Haynesville in 2026, while it expects to drill 50 wells and turn 48 wells to sales in the Legacy Haynesville, it said.Comstock is advancing its Texas power generation hub project, which will feature up to 5.2 gigawatts of gas-fired capacity and could require nearly 1 billion cubic feet per day of natural gas supply by 2031.The company expects drilling efficiencies and improved completion designs to increase productivity and reduce costs in 2026 compared with prior periods, supporting higher output and operational performance.Comstock Resources plans total capital expenditures of $1.4 billion to $1.5 billion in 2026.
