CRK - Comstock Resources: Decent Q4 2023 Results A More Conservative Approach For 2024

2024-02-14 08:00:00 ET

Summary

• Comstock Resources reduces activity in response to poor natural gas pricing, dropping 2 rigs and 1 frac crew.
• The 2024 capital program is smaller than expected and we see as essentially free cash flow neutral on a $2.50 gas price deck.
• We view the more cautious approach to 2024 as being welcomed by the sell side.

This is a Z4 Energy Research Pre Call Note.

Comstock Resources ( CRK ), a 100% natural gas Haynesville Shale pure play mid-cap E&P, reported decent 4Q23 results in light of bearish natural gas pricing. Our quick table here summarizes the quarter as slightly better than expected production and slightly lower than expected EBITDA (on weak natural gas prices and a slightly expanded differential)....

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