Comstock Resources (CRK) Stock Forecast & Price Target

Comstock Resources Inc. is increasing its operational activity in the Haynesville shale, with plans to transition 32 operated wells to production in FY25, reflecting a strategic focus on enhancing output. The company’s capital expenditure guidance for drilling and completion remains stable at $1-1.1 billion, indicating confidence in its investment strategy and long-term growth potential. Despite the challenges associated with costs in certain segments, the geographical advantages of the Haynesville basin, coupled with the company's plans for increased rig activity, contribute to a positive outlook on its stock performance.

Comstock Resources Inc has significantly reduced its FY25 production guidance by 6% at the midpoint to 1,275 mmcfe/d, which falls below prior expectations of sequential growth in the second half of the year. Additionally, the company introduced a 3Q25 guidance of 1,250 mmcfe/d at midpoint, which is lower than both previous projections and peer benchmarks in the industry. Despite the addition of a rig in the legacy area to address production declines, the company faces challenges such as delayed well completions and infrastructure constraints, indicating potential operational inefficiencies.