#4 - Comstock Resources, Inc. (NYSE:CRK)
Comstock Resources, Inc. (NYSE: CRK) - You don’t need to be a fan of the National Football League to appreciate what an influx of cash from Dallas Cowboys owner Jerry Jones can mean to the short- and long-term prospects for Comstock Resources. The company’s stock had been teetering near bankruptcy for nearly a year. But by acquiring oil and gas assets from Jones in exchange for newly issued stock, the company is likely to begin generating cash flow that will help them pay off short-term debt and should create a path towards production growth from the newly acquired properties. Jones, who now owns 84% of the company, is betting on Comstock to be able to help his properties continue to generate cash. His infusion of cash will allow the company to increase production activity without taking on debt, leaving the company with a large amount of cash to reinvest. Resolving its balance sheet issues is creating optimism for investors who see the fair value of the stock rising to $13/share just above its 52-week high with the possibility of climbing as high as $25/share. The stock is currently trading at around $8.50/share.
About Comstock Resources
Comstock Resources, Inc, an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. Its assets are located in the Haynesville and Bossier shales located in North Louisiana and East Texas. The company was incorporated in 1919 and is headquartered in Frisco, Texas.
- Current Price
- $10.15
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $9.75 (3.9% Downside)
