- The oil and gas industry is often a tough one for companies, a characteristic that Comstock Resources and their shareholders know all too well.
- They have entered 2021 skating on even thinner ice than when entering 2020 with their liquidity hitting very weak levels.
- This already risky situation is further compounded by their very high leverage.
- Given their cash flow performance and the high capital intensity of their industry, their ability to deleverage is highly questionable.
- This combination is simply toxic and thus I believe that a bearish rating is appropriate.
For further details see:
Comstock Resources: Still Skating On Thin Ice Into Another Year