Why I Prefer Comstock Over CNX Resources
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Long PlayerInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryCNX Resources remains a strong sell due to persistent management concerns and strategic missteps.Management's preference for share repurchases over deleveraging leaves CNX with a 2.0 debt ratio, above the industry-preferred 1.6.Temporary industry tailwinds from higher gas prices and cold weather do not offset CNX's long-term risk profile.I prioritize companies with prudent balance sheets and proven management, such as Comstock Resources and Headwater Exploration.Comstock Resources has a likely long-term benefit from the Western Haynesville discovery that is in addition to higher anticipated natural gas prices.This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »KJ Sullivan/iStock via Getty Images CNX Resources (CNX) has long been a company that I prefer to avoid. The whole situation began with the take-under of CNX Midstream years ago. As I noted in one of my past articles, CNXM This article was written byLong Player25.62K FollowersFollowLong Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.