2024-03-15 03:38:07 ET
Summary
- Comstock Resources operates in a "swing basin" with low location costs, giving them a competitive advantage over latecomers to the Haynesville Basin.
- The rig count in the Haynesville dry gas production is declining. The rig count will continue to decline until natural gas prices recover.
- CRK has a strong profitability cycle due to its early acquisition of acreage at low prices.
- The rig count decline cycle is at least more than halfway and likely near its end at this point.
- The pricing cycle of natural gas will change as more export capacity comes online in 2024 and 2025 to force North America to join the usually stronger world natural gas pricing market.
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Comstock Resources: Ace In The Hole