CRK

Comstock's FY2025 print is a dramatic cyclical recovery: revenue jumped 77% to $2.22B and net income swung to +$396M from -$230M, driven, per MD&A, by 'higher natural gas prices we realized in 2025.' Operating cash flow grew 45% to $900M and the business produced a 29.1% operating margin and 14.9% ROE. At $13.46 the stock trades at just 9.4x trailing EPS and 1.8x sales — optically cheap, and the five-year total-return chart in the 10-K shows CRK at $559 vs. the SPDR XOP ETF at $243 from a $100 base, confirming the cycle is working in shareholders' favor.

The filing also makes the bear case concrete. Capex of $1.35B exceeded operating cash flow of $900M, a ~$450M outspend funded by $429M of asset sales (Shelby Trough and Cotton Valley divestitures) and $216M of noncontrolling-interest contributions to the Western Haynesville midstream partnership — i.e., the growth is being financed, not self-funded. Management guides to another $1.4–1.5B of E&P capex plus $100–150M of midstream capex in 2026, so the outspend is structural, not a one-off. Long-term debt sits at $2.81B against $23.9M of cash; liabilities/equity is 1.53x and the credit facility carries a 3.5x leverage covenant that the company is currently inside but which constrains flexibility if gas prices retrace.