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Comstock Regains Compliance with NYSE Listing Conditions

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Comstock Resources, Inc. (CRK - Free Report) , an independent oil and gas exploration and production company, reported that it has regained the New York Stock Exchange’s (NYSE) listing compliance for the minimum required share price.

Per the NYSE rules, the listed company’s average closing stock price should not be less than $1 per share over a consecutive 30-day trading period. Moreover, it is important that the stock price closes above $1 per share on the last trading day of the month.

Comstock has regained compliance with the abovementioned minimum stock price standard. In addition, the company is trying to regain market capitalization compliance by following all the NYSE requirements including submission of quarterly operational updates to the stock exchange.

The NYSE also necessitates that the listed company’s average market capitalization should not be less than $50 million over a 30-day trading period.  As of Sep 1, 2016, Comstock reported a market cap of $84.5 million based on approximately 12.5 million shares outstanding and on the closing price of $6.76.

Comstock could regain full compliance either at the end of the 18-month plan period available or based on two consecutive quarterly monitoring periods in compliance.

COMSTOCK RESOUR Price

 

Frisco, TX-based Comstock is 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.

Given that natural gas has recovered significantly from the 17-year lows the commodity slipped to in March, we believe that the company is poised to achieve significant share price appreciation. Thus, the company remains well positioned to maintain a strong growth trajectory in the near-to-medium term.

However, the company, which derives its reserves/production from oil and natural gas, has seen its sales and income drop drastically in recent quarters due to the drop in commodity prices. 

Hence, Comstock currently carries a Zacks Rank #3 (Hold).

Some better-ranked players from the broader energy sector are NGL Energy Partners LP (NGL - Free Report) , Enviva Partners, LP (EVA - Free Report) and Gulfport Energy Corp. (GPOR - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).

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