Back to top

Analyst Blog

Domestic energy explorer, Comstock Resources Inc. (CRK - Analyst Report) has signed contracts with undisclosed parties for leasing 53,000 net acres in the prospective oil assets of Louisiana and Mississippi. Per the agreement, Comstock is expected to invest roughly $54.5 million.

One of the primary motives of Comstock behind the lease contract is to enter and explore the Tuscaloosa Marine shale, a promising oil play in Louisiana and Mississippi.

The deal is anticipated to close by the fourth quarter depending on some customary closing arrangements. Moreover, Comstock is looking to lease other acreages in Tuscaloosa Marine shale and also in another potential oil property.

Owing to consistently weak pricing for natural gas, Comstock is now focusing more on oil rich plays. The current contracts have already strengthened this view. Moreover, the company has put operations on hold in the Haynesville shale, a natural gas play, waiting for favorable gas pricing. Comstock believes that substantial backlog of new oil rich assets will give it a higher leverage to continuously drive oil output and reserve base in the near future.  

Frisco, Texas-based Comstock is an independent oil and gas exploration and production company engaged in the acquisition, exploration, and development of oil and gas properties. The company’s operations are concentrated primarily in two regions in the U.S.: East Texas/North Louisiana and South Texas.

Comstock currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at better performing energy firms like VOC Energy Trust (VOC - Snapshot Report), SM Energy Company (SM - Analyst Report) and Matador Resources Company (MTDR - Snapshot Report) that offer value. All the stocks sport a Zacks Rank #1 (Strong Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 26.05 +6.37%
CENTURY ALU… CENX 26.54 +6.24%
TESLA MOTOR… TSLA 282.42 +4.72%
BAIDU ADS BIDU 221.90 +3.44%
RTI SURGICA… RTIX 5.49 +3.39%