Energies Media
  • Magazine
    • Digital Magazine
    • Digital Magazine Archive
  • Features
  • Upstream
  • Midstream
  • Downstream
  • Renewable
    • Solar
    • Wind
    • Hydrogen
    • Nuclear
  • People
  • Events
  • Advertise
No Result
View All Result
Energies Media
No Result
View All Result

Low Natural Gas Prices Drive Comstock Resources to Increase Assets in Haynesville, Boosting Gas Production by Over 70 Percent

by Energies Media Staff
January 8, 2020
in Exploration & Production, Louisiana, News, Oil and Gas News, Upstream
Low Natural Gas Prices Drive Comstock Resources to Increase Assets in Haynesville, Boosting Gas Production by Over 70 Percent
Baker Hughes

Blue Creek mine delivers first coal ahead of schedule

Oil Companies Cut Millions in Wrong Places as Clean Energy Reshapes Industry

Steven Ho, Oil and Gas Analyst at GlobalData, a leading data and analytics company, offers his view on what Cornstock’s Chesapeake’s Haynesville assets acquisition will mean for Comstock:

“Comstock’s potential acquisition of Chesapeake’s Haynesville assets will significantly increase its natural gas production from 1.15 billion cubic feet per day (bcfd) up to 2bcfd in 2020, while operational synergy could increase Comstock’s current position net present value (NPV) from US$4.1bn up to US$5.8bn.

“Looking at major transactions that took place in the US in 2019, it is quite clear that pure gas merger and acquisition (M&A) deals are currently valued at a markdown when compared to oil deals, mainly due to prolonged low natural gas prices. Comstock’s strategy is to acquire Chesapeake’s Haynesville assets during the downturn cycle and maximize cost efficiencies stemming from close proximities of newly acquired wells to the company’s existing acreage.

“Over the past few years, Comstock has focused on lowering operating costs. The company will continue to do so by leveraging over 500 miles of owned gathering infrastructure and by renegotiating new gathering contracts and long-term marketing arrangements to gain access to the Gulf Coast premium markets. If Comstock manages to integrate Chesapeake’s assets with reduced operating cost, the combined NPV of such a position can reach approximately US$5.8bn versus US$4.1bn of Comstock’s current position.

Low Natural Gas Prices Drive Comstock Resources to Increase Assets in Haynesville Boosting Gas Production by Over 70 Percent

 

“There is a strong positive expectation for natural gas demand growth via new power, petrochemical and liquefied natural gas (LNG) plants but this does not necessarily guarantee a high natural gas price. There is a common consensus in the industry that the US LNG supply glut has started to form and will continue until the early 2020s, putting additional downward pressure on current LNG prices and ultimately impacting natural gas prices as well. This uncertainty will continue to force US natural gas operators into even higher cost efficiencies through larger scale operations which can in turn drive more merger and acquisition (M&A) activity in the coming years.”

Author Profile
Energies Media Staff
Website
Author Articles
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    Oil Companies
    September 15, 2025
    Oil Companies Cut Millions in Wrong Places as Clean Energy Reshapes Industry
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    Drones
    September 8, 2025
    Revolutionizing Renewable Energy with Advanced Drone Technology
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    Global Shale Oil and Gas Landscape Set for Growth Beyond US
    August 26, 2025
    Global Shale Oil and Gas Landscape Set for Growth Beyond US
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    E-Fuels
    August 13, 2025
    2nd Annual World E-Fuels Summit
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    What Happens to Solar and Wind Systems During Natural Disasters?
    August 6, 2025
    What Happens to Solar and Wind Systems During Natural Disasters?
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    ship on body of water at night
    August 1, 2025
    Industry leaders to speak at Wood Mackenzie’s Carbon Capture, Utilization and Storage Conference 2025
LNG
Expo

In This Issue

Energies Media Summer 2025

ENERGIES Media (Summer 2025)


ENERGIES Cartoon (Summer 2025)


Dewey Follett Bartlett, Jr.: Tulsa’s Champion of Independents


The Hidden Value in Waste Oil: A Sustainable Solution for the Future


U.S. Oil Refineries Face Critical Capacity Test Amid Rising Demand


Letter from the Managing Editor (Summer 2025)


Why Energy Companies Need a CX Revolution


Moving Energy Across Space and Time


Energies Media Interactive Crossword Puzzle – Summer 2025


NeverNude Coveralls: A Practical Solution for Everyday Dignity


Meeting Emergency Preparedness and Response Criteria


Maximizing Clean Energy Tax Credits Under the Inflation Reduction Act


How to Deploy Next-Gen Energy Savers Without Disrupting Operations


Bringing Safety Forward in Offshore Operations

E-Fuels
ADIPEC
  • Terms
  • Privacy

© 2025 by Energies Media

No Result
View All Result
  • Magazine
    • Digital Magazine
    • Digital Magazine Archive
  • Features
  • Upstream
  • Midstream
  • Downstream
  • Renewable
    • Solar
    • Wind
    • Hydrogen
    • Nuclear
  • People
  • Events
  • Advertise

© 2025 by Energies Media