Comstock Resources: A Risky Investment Good For A Trade

Comstock Resources, Inc. rates a Buy for aggressive investors seeking exposure to a potential year-end recovery in natural gas prices. CRK faces significant free cash flow deficits—projected at $200M–$250M per quarter—through at least year-end 2027 due to elevated Western Haynesville development costs. Operational improvements, including larger diameter wells and heat-resistant equipment, may gradually reduce drilling costs, but higher proppant loads will offset some savings.