|Bid||0.00 x 1800|
|Ask||6.44 x 1000|
|Day's Range||6.05 - 6.48|
|52 Week Range||4.17 - 10.70|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||9.40|
|Earnings Date||Feb 26, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Dec 02, 2014|
|1y Target Est||7.23|
Frisco, Texas, Jan. 27, 2020 -- Comstock Resources, Inc. (NYSE:CRK) announces its plan to release fourth quarter 2019 results on February 27, 2020 before the market opens and.
Can floundering Chesapeake Energy (NYSE:CHK) catch a break in 2020? CHK stock is worth less than a third of what it was this time last year.Source: Casimiro PT / Shutterstock.com Natural gas, Chesapeake's bread-and-butter, remains in a slump. The Iran incident briefly pushed oil up above $60/barrel, but prices fell back after tensions cooled down. With the company dependent on factors outside its control (energy prices), it's tough to see how they can get themselves back on track.The company's high leverage also doesn't help. A recent debt exchange may keep the company out of bankruptcy in the coming year, but in the long-term, the company's work is cut for them with regard to de-leveraging. Based on quotes from the Finra/Morningstar Bond Screener, much of the company's publicly-traded debt trades far below par value.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a recent analysis from InvestorPlace's Ian Bezek discussed, it's telling that bondholders took 30%+ losses in the refinancing. And if the bonds aren't worth their par value, that doesn't bode well for Chesapeake's equity. * 10 Cheap Stocks to Buy Under $10 In other words, even though shares trade around $0.70/share (down 80% from their 52-week high), they could go to zero. On the other hand, investors willing to risk a complete loss could see significant upside if energy prices rebound in the coming year.Increased energy prices would improve the valuation of the company's underlying assets. With asset sales, Chesapeake could pay down much of its debt, get out of the hole, and become a more stable enterprise. With natural gas prices depressed, Chesapeake's highly-leveraged balance sheet, and asset impairment charges hitting the energy space, the stock's near-term prospects do not look promising. Handicapping Natural GasChesapeake is not only overleveraged debt-wise. The company's future prospects are all-too-dependent on natural gas prices. Even with cuts, the company's production split remains heavily weighed towards natural gas.There currently is oversupply in the natural gas market. This isn't helped by the abundance of associated gas, that is, natural gas found with crude oil deposits. But some oil producers are opting to burning off the unprofitable natural gas, in lieu of selling it. However, this alone may not make up for the glut.Much of Chesapeake's production this year is hedged at higher prices ($2.75/MMBtu). This covers the company for 2020, but 2021 is another matter. Based on forecasts by the Energy Information Administration (EIA), estimates call for natural gas prices to be about $2.54/MMBtu. This is a rebound from their 2020 average price estimates ($2.33/MMBtu), but still far from prices seen in prior years.Natural gas prices are the main catalyst to make or break Chesapeake. This plays into another factor with the company, which is the value of its underlying reserves. The company needs the market value of these assets to sustain in order to execute much-needed asset sales. Asset Sales and CHK StockChesapeake Energy is very dependent on factors outside its control. Yet, there are ways for the company's management to work through these headwinds, helping reverse the stock's downward trend.Asset sales remain a big option for Chesapeake. The company was in talks to sell $1 billion in assets to Comstock Resources (NYSE:CRK). However, December's refinancing deal has delayed talks on this proposed transaction.Even if Chesapeake can find buyers for some of its assets, what types of prices do they expect to fetch? Chevron's (NYSE:CVX) recent impairment charges were discussed in InvestorPlace contributor Mark Hake's January 3 CHK stock analysis. However, Chevron is not the only big energy player writing-down oil and gas assets. Royal Dutch Shell (NYSE:RDS.A RDS.B) has also announced a big impairment charge.Chesapeake's oil and gas reserves are on the books at $14.9 billion. But with an estimated $8.76 billion in debt (post-debt exchange), and a current market cap of $1.32 billion, investors are implying these reserves are worth just around $10 billion. Unless the natural gas situation improves, the company's margin for error is becoming thinner and thinner. If natural gas assets see further valuation impairments, Chesapeake's assets may be worth less than its outstanding debt. In other words, CHK stock would truly have zero underlying value. The Bottom Line on CHK StockIt's impossible to tell when or even if Chesapeake Energy will rebound. So much of the bull case hinges on "predicting the unpredictable." How good are you at handicapping the natural gas markets? Unless you can develop a high-conviction case for higher gas prices in 2020 and 2021, I wouldn't try to tackle this hot mess of a company.You could speculate, and see big gains if a black swan event pushes natural gas prices back up to prior levels. But if you prefer to invest, and not gamble, Chesapeake is not your play. Look elsewhere for opportunity.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post Low Natural Gas Prices and High Debt Still Weigh Down CHK Stock appeared first on InvestorPlace.
Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at […]
Some Comstock Resources, Inc. (NYSE:CRK) shareholders are probably rather concerned to see the share price fall 35...
Comstock Resources (CRK) announces the recent closure of its acquisition of a privately-held company with Haynesville shale properties comprising 3,000 net acres plus 12.7 net future drilling sites.
Both OPEC and the IEA released key reports this week, both of which pointed to some major worries for the oil cartel, yet oil markets seem not to have noticed
Reuters on Wednesday reported that Comstock Resources is in talks to buy Chesapeake Energy Corp's Haynesville shale assets in Louisiana. A deal would come just months after Comstock paid $1.1 billion to buy privately held Covey Park Energy to become the largest operator in the region.
Shale icon Chesapeake is reportedly in talks with Comstock Resources about selling its Haynesville shale assets which could be worth more than 1 billion dollars
Comstock (CRK) delivered earnings and revenue surprises of 21.43% and -4.08%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Frisco, TX, Nov. 07, 2019 -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the third quarter of 2019..
Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ complex research processes to determine the best stocks to invest in. A particularly […]
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Comstock Resources, Inc. New York, October 24, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Comstock Resources, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...
FRISCO, TEXAS, Oct. 15, 2019 -- Comstock Resources, Inc. (NYSE:CRK) announces its plan to release third quarter 2019 results on November 7, 2019 before the market opens and.
Cowboys owner Jerry defended his approach to the Ezekiel Elliott contract negotiation, and said he’s happy with the result.