Comstock Resources: Significant Cost Reduction In Process

(7min)

Summary

  • Comstock Resources' Western Haynesville wells deliver 50% higher flow rates than legacy acreage.
  • Lower land costs in Western Haynesville position Comstock as a potential low-cost gas producer.
  • At $400 per acre, Western Haynesville land costs are negligible compared to the $60K per acre seen in the Permian.
  • Comstock's emerging Western Haynesville play could enhance profitability and competitive positioning.
  • Western Haynesville per foot cost is still higher, but the well length is shorter. The comparison is likely to improve in the future.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Array of crude oil wells on background of a bar chart and line graph. Illustration of the concept of increasing prices of petroleum and other natural resources

Dragon Claws

Comstock Resources (NYSE:CRK) has legacy acreage in the Haynesville. But the last article noted a discovery in the Western Haynesville in which the wells flow roughly about 50% more. The latest corporate presentation confirms more of those

I analyze oil and gas companies like Comstock Resources and related companies in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here for a free two-week trial.

This article was written by

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor, and this is not a recommendation to buy or sell a security. Investors are recommended to read all of the company's filings and press releases, as well as do their own research to determine if the company fits their own investment objectives and risk portfolios.

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