Comstock Resources (CRK.N): Cleaning Up Pinnacle‘s Balance Sheet Via a Solid Valuation Data Point

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Comstock Resources (CRK.N): Cleaning Up Pinnacle‘s Balance Sheet Via a Solid Valuation Data Point

Comstock Resources (CRK.N)

15 June 2026 Citi Research

Comstock Resources

Valuation

Our target price of $19/share is based on two components: 1) the stock achieving an EV/DACF multiple of ~6.0x on 2026E,

accounting for the volatility in natural gas pricing (representing ~$9/share in value); and 2) ~60% incorporation of the estimated

NPV value of the Western Haynesville acreage position. We assign the multiple in line with historical averages, as well as relative

valuation among peers and the wider industry, all of which have a correlative function against commodity pricing expectations.

Risks

We designate CRK as High Risk based on Citi’s quant model (higher volatility) and the company’s lower trading liquidity/market

cap among broader E&P peers. We take additional consideration for our High Risk classification given their relatively small

hedge portfolio relative to peers in a period where volatility of the underlying commodity is expected to remain elevated.

Risks to our target price include:

Drilling Results – Production growth and capital efficiency gains, the main components of our thesis, depend heavily on drilling

results. Any weakness in recoveries per lateral foot or unexpected increases to well costs could impact CRK’s share

performance.

Volatile Commodity Prices – Hydrocarbon prices have shown increased volatility in recent years, directly flowing to both cash

flow and earnings. This volatility will likely continue to materially impact sector stock performance, both positively and

negatively.

Concentrated Asset Base and Infrastructure Bottlenecks – Although we think CRK has assembled an attractive portfolio in the