Let’s dig into the relative performance of Comstock Resources (NYSE:CRK) and its peers as we unravel the now-completed Q4 upstream natural gas e&p earnings season.
Natural gas-focused E&P companies explore, develop, and produce natural gas resources serving power generation, industrial, and export markets. Natural gas is often positioned as a transition fuel given lower carbon intensity versus coal and oil. Tailwinds include growing LNG (liquefied natural gas) export demand, power generation switching from coal, and industrial consumption growth. Headwinds include natural gas price volatility driven by weather, storage levels, and competing supply sources. Infrastructure constraints may limit market access, while long-term demand faces uncertainty from renewable energy expansion and electrification trends potentially reducing gas consumption.
The 6 upstream natural gas e&p stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.6%.
In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.
Operating in the Haynesville shale where a single well can produce millions of cubic feet of gas daily, Comstock Resources (NYSE:CRK) drills for and produces natural gas from underground shale rock formations in Louisiana and Texas.
Comstock Resources reported revenues of $361.8 million, up 5.9% year on year. This print fell short of analysts’ expectations by 21.9%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates.
Comstock Resources delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 12.2% since reporting and currently trades at $17.93.
Read our full report on Comstock Resources here, it’s free.
Tracing back to operations that began in 1860, CNX Resources (NYSE:CNX) drills for and produces natural gas from underground shale formations in Pennsylvania, Ohio, and West Virginia.
CNX Resources reported revenues of $450 million, up 8.9% year on year, outperforming analysts’ expectations by 5.1%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 5.7% since reporting. It currently trades at $38.83.
Is now the time to buy CNX Resources? Access our full analysis of the earnings results here, it’s free.
Holding roughly 521,000 net acres across West Virginia, Ohio, and Pennsylvania, Antero Resources (NYSE:AR) drills and produces natural gas, natural gas liquids, and oil from underground rock formations in the Appalachian Basin.
