Comstock Resources Inc. CRK announced that it got a notice from the NYSE for non compliance with the stock exchange’s standard of continued listing.
Two specific issues that have been raised by the stock exchange are that the company is trading on the NYSE at below $1 per share and with market capitalization of less than $50 million. The stock exchange has noticed that the company has not been complying with the two standards for a period of over 30 trading days.
Comstock Resources will now have to inform the stock exchange on how it plans to overcome its deficiencies. Investors should know that the company has six months in hand to comply with the minimum stock price standard and 18 months to cure its market capitalization deficiency. The company will likely be suspended or delisted from the stock exchange following its failure to comply with the standards within the stipulated time frame.
Comstock Resources will keep on trading on the NYSE over this period subject to the acceptance of its plan to cure deficiencies by the stock exchange.
Frisco, TX-based Comstock Resources is an independent oil and gas exploration and production company engaged in the acquisition, exploration, and development of oil and gas properties. The company’s strong acreage position in the prolific Haynesville/Bossier Shale play in the East Texas and North Louisiana region provides attractive reserve and production growth prospects.
However, similar to the other independent exploration and production companies, the results of Comstock Resources are directly exposed to oil and gas prices. Continued weakness in commodity prices has significantly affected the company’s revenues, earnings and cash flows.
As a result, the company carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector include Antero Resources Corporation AR, Vanguard Natural Resources LLC VNR and Linn Energy LLC LINE. Antero Resources and Vanguard Natural sport a Zacks Rank #1 (Strong Buy), while Linn Energy carries a Zacks Rank #2 (Buy).
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