Back in July 2019, Texas-based Comstock Resources went all in on natural gas at a time when everyone else was courting crude. The company bet large on the Haynesville shale play with a $2.2 billion gamble that secured its place as the single largest operator there. Reese Energy Consulting today is following Comstock’s recently announced 4Q 2020 performance and outlook for 2021. But first, a quick rewind. With the acquisition of Covey Park Resources less than 2 years ago, Comstock operates 323,000 acres with 1.1 BCFPD in production, 2,000 net drilling locations, 7.6 TCF of proved reserves, 57 years of inventory, and 500 miles of gathering pipe in the nation’s second largest gas basin. And let’s not forget the Haynesville’s proximity to the Gulf Coast—now the epicenter of LNG export terminals. The company currently markets 2 BCFPD with another 1.2 BCFD in Swing Sales. With a large amount of undedicated acreage, Comstock can “time” those Swing Sales and benefit from spikes in spot prices like what we recently saw. Suffice it to say, this producer scored a serious windfall.
Comstock Resources is a leading independent natural gas producer with operations focused on the development of the Haynesville Shale in North Louisiana and East Texas.