Comstock Resources, Inc. (CRK): A Bull Case Theory

We came across a bullish thesis on Comstock Resources, Inc. on DeepValue Capital’s Substack. In this article, we will summarize the bulls’ thesis on CRK.. Comstock Resources, Inc.'s share was trading at $16.08 as of August 7^th. CRK’s trailing and forward P/E were 48.73 and 26.81, respectively according to Yahoo Finance.

Comstock Resources (CRK), a natural gas pure-play based in Frisco, Texas, represents a classic deep-value setup: mispriced, overlooked, and strategically levered to a structural theme in U.S. energy. CRK is one of the largest operators in the Haynesville shale—a prolific gas basin in North Louisiana and East Texas—producing ~1,350 MMcf/day from over 2,400 wells across 822,000+ net acres. Its business is sharply focused: acquire acreage, drill horizontally into high-pressure rock, extract gas at the lowest cost, and sell into proximate Gulf Coast infrastructure. Under the long-standing leadership of Jay Allison since 1988, CRK has consistently outperformed peers by being the lowest-cost dry gas producer in one of the most infrastructure-rich regions of the country.

This cost advantage is not merely about margins—it’s a strategic moat. CRK remains profitable at lower gas prices, takes market share in downturns, and avoids over-hedging, leaving upside exposure intact in bull cycles. The company’s recent expansion into Western Haynesville—a deeper, more expensive but higher-yielding region—adds a material growth lever, with large swathes of acreage yet to be proved up.

Despite these operational strengths and favorable positioning near LNG terminals, the stock trades at just one-third of its base-case intrinsic value, per the author. A Q2 check reinforces the bullish view amid a supply/demand mismatch building in U.S. gas markets. While risks remain—from commodity volatility to drilling costs—the asymmetric setup is compelling. With shares at $16.28, the author expects CRK to rerate to $40+, offering a potential 2.5x upside, supported by its scale, cost leadership, and strategic geography.

Previously, we covered a bullish thesis on Civitas Resources (CIVI) by mbacandidate1 in January 2025, which highlighted the company’s debt-driven expansion strategy, undervaluation versus peers, and high shareholder return yield. The company’s stock price has depreciated by approximately 39% since our coverage. This is because the thesis didn’t play out amid weak oil prices. DeepValue Capital shares a similar view on Comstock Resources (CRK) but emphasizes cost leadership and structural gas tailwinds.

Comstock Resources, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held CRK. at the end of the first quarter which was 18 in the previous quarter. While we acknowledge the potential of CRK. as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.