Comstock Resources: SOCAR And Jones Family Deals Substantially Improve Its Financial Outlook

Elephant Analytics Investing Group Leader Follow Summary Comstock's SOCAR and Jones deals reduce its projected year-end 2027 net debt from around $4 billion to under $2 billion. This relieves financial pressure as it attempts to work on its Western Haynesville economics. The SOCAR deal appears to be around 7x EBITDAX at $3.30 NYMEX natural gas. Comstock's forward-year capex may be reduced by around $700 million due to the Jones partnership and offloading of other capex to SOCAR. Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More » Yanina Sinyaya/iStock via Getty Images Comstock Resources ( CRK ) announced a $1.65 billion deal with the State Oil Company of the Azerbaijan Republic (SOCAR) and a $450 million drilling joint venture with Jerry Jones. The SOCAR deal is currently a This article was written by Elephant Analytics 12.11K Followers Follow Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>> Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. 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.