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Comstock Resources, Inc. (CRK - Free Report) , according to recent reports, has placed its bid for the Cotton Valley and Haynesville Shale assets of bankrupt Enduro Resource Partners LLC, an exploration and production company that is liquidating its properties. Founded in 2010 and backed by the private equity firm, Riverstone Holdings, Enduro Resource was hit by low oil price environment that shook the industry a few years back.
Comstock Resources, through its subsidiary Comstock Oil & Gas-Louisiana LLC, placed the bid for Enduro Resource’s Cotton Valley and Haynesville Shale assets for $20 million. Notably, Comstock Resources has acreages in Texas and Louisiana and if the purchase of Enduro Resource’s properties materializes, it will strengthen the Frisco, TX-based upstream company’s position in the region.
Comstock Resources’ low-risk high-return properties in the Haynesville Shale are expected to bring about natural gas output growth of around 30% for this year and 50% for the next year. Moreover, growth in the company’s 2017 natural gas output and proved reserves were primarily derived from the horizontal well-drilling program in the Haynesville shale. Additionally, the company has several producing fields including Blocker, Beckville and Waskom fields in its portfolio, which produces from the Cotton Valley formation. Hence, increasing exposure in these prolific regions can further add value to the company’s portfolio.
Notably, along with the Cotton Valley and Haynesville Shale assets, Enduro Resource is disposing other properties as well that are located in the North Dakota, Wyoming and New Mexico areas. The initial line up for the bidding is worth around $97.5 million.
Price Performance
Comstock Resources has gained 37.2% in the past year compared with 11.9% growth of its industry.
Zacks Rank and Stocks to Consider
Currently, Comstock has a Zacks Rank #3 (Hold).
Investors interested in the energy sector can opt for some better-ranked stocks like Anadarko Petroleum Corporation , Delek US Holdings, Inc. (DK - Free Report) and HollyFrontier Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Woodlands, TX-based Anadarko is an exploration and production company. For 2018, its bottom line is likely to be up 239.3%. In the last reported quarter, the company delivered a positive earnings surprise of 20.1%.
Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is anticipated to improve 39.2% year over year, while its bottom line is expected to increase 230.2%.
Dallas, TX-based HollyFrontier is an independent refining company. For 2018, its bottom line is likely to be up 145.3%. In the last four reported quarters, the company delivered an average positive earnings surprise of 41.3%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Comstock Resources Eyes Enduro Resource Assets, Places Bid
Comstock Resources, Inc. (CRK - Free Report) , according to recent reports, has placed its bid for the Cotton Valley and Haynesville Shale assets of bankrupt Enduro Resource Partners LLC, an exploration and production company that is liquidating its properties. Founded in 2010 and backed by the private equity firm, Riverstone Holdings, Enduro Resource was hit by low oil price environment that shook the industry a few years back.
Comstock Resources, through its subsidiary Comstock Oil & Gas-Louisiana LLC, placed the bid for Enduro Resource’s Cotton Valley and Haynesville Shale assets for $20 million. Notably, Comstock Resources has acreages in Texas and Louisiana and if the purchase of Enduro Resource’s properties materializes, it will strengthen the Frisco, TX-based upstream company’s position in the region.
Comstock Resources’ low-risk high-return properties in the Haynesville Shale are expected to bring about natural gas output growth of around 30% for this year and 50% for the next year. Moreover, growth in the company’s 2017 natural gas output and proved reserves were primarily derived from the horizontal well-drilling program in the Haynesville shale. Additionally, the company has several producing fields including Blocker, Beckville and Waskom fields in its portfolio, which produces from the Cotton Valley formation. Hence, increasing exposure in these prolific regions can further add value to the company’s portfolio.
Notably, along with the Cotton Valley and Haynesville Shale assets, Enduro Resource is disposing other properties as well that are located in the North Dakota, Wyoming and New Mexico areas. The initial line up for the bidding is worth around $97.5 million.
Price Performance
Comstock Resources has gained 37.2% in the past year compared with 11.9% growth of its industry.
Zacks Rank and Stocks to Consider
Currently, Comstock has a Zacks Rank #3 (Hold).
Investors interested in the energy sector can opt for some better-ranked stocks like Anadarko Petroleum Corporation , Delek US Holdings, Inc. (DK - Free Report) and HollyFrontier Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Woodlands, TX-based Anadarko is an exploration and production company. For 2018, its bottom line is likely to be up 239.3%. In the last reported quarter, the company delivered a positive earnings surprise of 20.1%.
Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is anticipated to improve 39.2% year over year, while its bottom line is expected to increase 230.2%.
Dallas, TX-based HollyFrontier is an independent refining company. For 2018, its bottom line is likely to be up 145.3%. In the last four reported quarters, the company delivered an average positive earnings surprise of 41.3%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>