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Actionable news in CRK: COMSTOCK RESOURCES Inc,

Comstock - Liquidity, Capital Flexibility, No Revolver Redetermination Risk

Comstock remains one of the better positioned stressed equity E&P's in the entire space.

Comstock has plenty of options for bringing further stability to its balance sheet should this crisis drag on.

Continue to wait on Comstock but definitely watch this name closely.

Amid much fear that the recent drop in oil prices may lead to some oil companies going out of business in the immediate and the mid-term, as opined by many in mass financial and energy media, I thought I would point out that one name which is trading extremely stressed should provide ample upside after oil finds a bottom. This is a name that I obviously believe will survive the pricing crisis and be able to realize the upswing of the expected recovery in general energy equities. Yes, it is true that a group of names is going to be under extreme pressure as fall revolver redeterminations will be punitive in that new inputs used by banks to determine borrowing and risk of default (read: lower oil pricing inputs) will be much, much lower than that of prior redeterminations. This is a point that I've quite literally been making for months and have factored in greatly into building my shopping list of E&P names for when oil bottoms, which I have modeled for a bottom at Brent $33-$39. But, alas, there are also names in E&P currently that are being branded with such a peer group that simply do not belong. I believe Comstock Resources (NYSE:CRK) to be such a name.

That said there is some general misinformation in quite a bit of widely circulating...


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