Comstock Resources Q2 oil and gas sales fall, EPS drops

Overview

• U.S. natural gas producer's Q2 oil and gas sales fell yr/yr to $332 mln

• Adjusted EPS for Q2 was $0.03, down from $0.44 a year ago

• Production rose 16% from Q1, but only 1% yr/yr

Outlook

• Company did not provide specific guidance or outlook commentary for the current or future periods

Result Drivers

• PRODUCTION GROWTH - Q2 production rose 16% from Q1, driven by turning new Haynesville wells to sales

• LOWER REALIZED PRICES - Lower average realized prices for natural gas and oil reduced sales compared to a year ago

• HEDGING GAINS - Realized hedging gains of $43 mln helped offset weaker market prices

Company press release: ID:nGNX2xMtRJ

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil gas exploration and production peer group is "buy."

• Wall Street's median 12-month price target for Comstock Resources Inc is $16.00, about 29.2% above its July 28 closing price of $12.38

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• July 28 - Expand Energy tops profit estimates as higher output offsets lower gas prices

• July 27 - Alliance Resource Partners Q2 revenue beats on higher oil gas royalties

• July 28 - India plans up to quarter of 2027 LPG imports from US, sources say

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)