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We came across a bullish thesis on Comstock Resources, Inc. on DeepValue Capital’s Substack. In this article, we will summarize the bulls’ thesis on CRK.. Comstock Resources, Inc.’s share was trading at $16.08 as of August 7th. CRK’s trailing and forward P/E were 48.73 and 26.81, respectively according to Yahoo Finance.
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Comstock Resources (CRK), a natural gas pure-play based in Frisco, Texas, represents a classic deep-value setup: mispriced, overlooked, and strategically levered to a structural theme in U.S. energy. CRK is one of the largest operators in the Haynesville shale—a prolific gas basin in North Louisiana and East Texas—producing ~1,350 MMcf/day from over 2,400 wells across 822,000+ net acres. Its business is sharply focused: acquire acreage, drill horizontally into high-pressure rock, extract gas at the lowest cost, and sell into proximate Gulf Coast infrastructure. Under the long-standing leadership of Jay Allison since 1988, CRK has consistently outperformed peers by being the lowest-cost dry gas producer in one of the most infrastructure-rich regions of the country.
This cost advantage is not merely about margins—it’s a strategic moat. CRK remains profitable at lower gas prices, takes market share in downturns, and avoids over-hedging, leaving upside exposure intact in bull cycles. The company’s recent expansion into Western Haynesville—a deeper, more expensive but higher-yielding region—adds a material growth lever, with large swathes of acreage yet to be proved up.
Despite these operational strengths and favorable positioning near LNG terminals, the stock trades at just one-third of its base-case intrinsic value, per the author. A Q2 check reinforces the bullish view amid a supply/demand mismatch building in U.S. gas markets. While risks remain—from commodity volatility to drilling costs—the asymmetric setup is compelling. With shares at $16.28, the author expects CRK to rerate to $40+, offering a potential 2.5x upside, supported by its scale, cost leadership, and strategic geography.
Previously, we covered a bullish thesis on Civitas Resources (CIVI) by mbacandidate1 in January 2025, which highlighted the company’s debt-driven expansion strategy, undervaluation versus peers, and high shareholder return yield. The company’s stock price has depreciated by approximately 39% since our coverage. This is because the thesis didn’t play out amid weak oil prices. DeepValue Capital shares a similar view on Comstock Resources (CRK) but emphasizes cost leadership and structural gas tailwinds.
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