Comstock Strong in Long Term

We are maintaining our Buy recommendation on Comstock Resources (CRK - Analyst Report) shares following weaker than expected 4th-quarter 2008 results. We continue to believe that Comstock remains better positioned to navigate the current downturn given its growing resource-play focus and balance sheet strength.

Management has prudently responded to the uncertain near-term outlook by lowering its 2009 capital program and focusing on its higher return opportunities, including its extensive acreage position in the Haynesville Shale play. The Haynesville Shale offers significant long-term reserve-add potential going forward.

The company remains in excellent financial health, with a current debt-to-capitalization ratio of 16.5%. The last year's sale of offshore GoM [Gulf of Mexico] assets not only strengthened its balance sheet, but also converted it into a pure-play onshore natural gas producer.

Read the full analyst report on CRK