Comstock Resources’ Texas Move: A Bold Bet on Energy’s Future?

The energy sector is rarely static, and Comstock Resources (NYSE: CRK) has just thrown down a bold marker with its dual listing on NYSE Texas—a newly launched exchange aimed at boosting the Lone Star State’s economic clout. This isn’t just a technicality; it’s a strategic statement about Comstock’s belief in Texas’s role as an energy powerhouse. Let’s dissect what this means for investors.

The Dual Listing: More Than Just a Ticker

On May 2, 2025, Comstock became a Founding Member of NYSE Texas, adding the exchange to its primary listing on the New York Stock Exchange. While this move doesn’t change the stock’s ticker symbol (CRK remains), it’s a symbolic win for a company that’s staked its future on the Haynesville shale—a vast natural gas reserve stretching from North Louisiana into East Texas.

CEO M. Jay Allison called the dual listing a “vote of confidence in Texas’s economy,” but the real question is: Does this move translate into tangible value for shareholders?

The Numbers Underlying the Hype

Comstock’s Q1 2025 results give a glimpse of its operational muscle. Despite a net loss of $115.4 million (driven by hedging losses), the company reported Adjusted EBITDAX of $293 million—a metric that strips out volatile accounting factors. Meanwhile, its $2.0 billion borrowing base under a credit facility signals financial flexibility.

The crown jewel? The Olajuwam Pickens #1 well, which hit an initial production rate of 41 MMcf per day—a testament to the Haynesville shale’s potential. This well alone could add significantly to Comstock’s reserves, a critical factor as natural gas demand surges.

The Market’s Silent Take

Here’s the catch: The May 2 announcement itself hasn’t moved the needle—yet. Historical data up to May 2 shows CRK’s stock has been a rocket ship over the long term:
- 5-year return: 186.63% (vs. the S&P 500’s 100.89%).
- 1-year return: 105.58% (vs. the S&P’s 12.29%).

However, post-May 2 trading data is missing. The lack of immediate volatility suggests investors may be waiting for operational proof—like sustained production from new wells or clarity on hedging strategies—before betting big.

Risks and Rewards: A Balancing Act

Cramer’s rule of thumb? Never ignore the downside. Comstock’s risks include:
1. Natural gas prices: While they’ve risen, a sudden drop could crush margins.
2. Hedging woes: The Q1 loss from hedging shows how derivatives can backfire.
3. Regulatory headwinds: Texas’s energy dominance is under scrutiny as ESG pressures grow.

Yet, the Haynesville shale is a game-changer. This region holds ~100 Tcf of recoverable gas, and Comstock’s low-cost operations (well costs down 12% YTD) give it a leg up. If global gas prices stay elevated—driven by Asia’s recovery or European energy shortages—this stock could soar.

The Bottom Line: A Buy for the Brave

Comstock’s dual listing is less about immediate gains and more about positioning for dominance in Texas’s energy renaissance. The stock’s 11.25% YTD return and strong well results make it a compelling bet for investors willing to stomach volatility.

But here’s the kicker: Watch the hedging strategy. If Comstock can lock in prices without overexposing itself, this could be a multiyear winner. For now, it’s a hold—but keep an eye on those Haynesville wells. They might just light a fire under this stock.

In sum, Comstock’s Texas move isn’t just about listings—it’s about betting on an energy future where gas remains king. For those with the stomach for energy’s ups and downs, this could be a buy. But tread carefully: The shale game is as unpredictable as it is profitable.