Oil and gas properties residing predominantly in mature low-risk basins; Increasing exposure to longer-lived onshore properties; and Moderate reserve life (14 years). High debt leverage; Creeping finding and development costs; and Lack of significant financial hedges exposes the company to commodity price volatility. The ratings on Comstock Resources Inc. reflect challenges the company faces as an independent oil and gas exploration and production company with a small, concentrated reserve base of 629 billion cubic feet equivalent (bcfe) at year-end 2004 (pro forma for the EnSight Acquisition of 749.1 bcfe; 80% natural gas; 62% proved developed; and 82% operated) and high debt leverage. These risks are partially offset by operations confined to mature, relatively low-risk basins and a moderate reserve life....
Companies mentioned in this report are:
- Comstock Resources Inc.
- Sabine Oil & Gas Corp.
- Chesapeake Energy Corp.
- Stone Energy Corp.
- Denbury Resources Inc.
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Research Type: Full Analysis