In a bid to bolster its Haynesville acreage, Comstock Resources Inc. (CRK Quick QuoteCRK - Free Report) recently inked a deal to acquire Shelby Shale, LLC’s 88% interest in around 6,000 net acres in the region. The deal is valued at $20.5 million, with Comstock paying the purchase price over a period of four years by granting Shelby a 12% interest in each well drilled on the acreage. Notably, the acreage comprises 33 potential drilling locations. 

 

Importantly, Comstock had also acquired Enduro Resource’s Cotton Valley and Haynesville Shale assets for about $20 million this year. The latest deal revs up Comstock’s position in the Haynesville region and bodes well for its future prospects. 

 

Comstock's strong acreage position in the prolific Haynesville/Bossier Shale play in the East Texas and North Louisiana region provides attractive reserve and production growth prospects. The company delivered earnings beat in the trailing six quarters on strong results from the Haynesville program. Based on the quality of its Haynesville/Bossier assets, Comstock expects this year’s natural gas production to average within 250-270 million cubic feet per day, depicting a significant increase from 201 million cubic feet churned out in 2017. It further forecasts output growth and natural gas production for the next year in the band of 370-420 thousand cubic feet per day.

 

Nonetheless, volatile commodity pricing environment and the elevated leverage of the firm remain concerns. As such, Comstock currently carries a Zacks Rank #3 (Hold).

 

 

Cabot’s 2019 earnings are expected to witness year-over-year growth of 63.41%.

 

SilverBow’s 2019 earnings are expected to grow67.32% on a year-over-year basis. 

 

QEP delivered average positive surprise of 1,217.11% in the trailing four quarters.

 

 

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. 

 

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.