Comstock Resources: A Potential Unexpected Step Forward Surprises The Market

Long Player Investing Group Leader Follow Summary Comstock Resources announces a $400M+ JV with the Jerry Jones family and a preliminary deal to halve its debt via $1.65B in gross proceeds. CRK is trading legacy Haynesville and Pinnacle interests for financial flexibility to drive cost reductions in Western Haynesville. Management and major shareholder Jerry Jones see potential for substantial value creation. Market skepticism persists until cost targets are met and cash flow materializes. Insider commitment signals confidence in surpassing prior highs (stock market valuation). This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » IURII KRASILNIKOV/iStock via Getty Images Comstock Resources ( CRK ) announced both a joint venture with a fund that is part of the Jerry Jones family resources that would invest more than $400 million. Additionally, it was announced that the company reached a This article was written by Long Player 25.95K Followers Follow Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I may buy more CRK without further notice. Disclaimer: I am not an investment advisor, and this article is not meant to be interpreted as a recommendation to buy or sell the stock of this company. Investors need to review their own investment profile and determine if this stock fits their investment objectives on their own. It is recommended that all the company's official documents and press releases be read by an investor before making a buy or sell decision. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.