Story at a glance
- Natural gas companies are experiencing booms in prices as winter storm Uri freezes power supplies across the state.
- On Wednesday, Comstock’s stock price rose by 10 percent.
Comstock Resources Inc., a natural gas company headquartered in Texas, experienced a boon in prices for its gas today amid a statewide shortage as Winter Storm Uri leaves Texas power companies in disarray.
Bloomberg reports that prices for natural gas have surpassed the $1,000 mark per million British thermal units as demand rises.
Prior to the statewide outages, Comstock’s gas, some sourced from its Haynesville wells, sold between $15-$179 per thousand cubic feet, the company’s CFO Roland Burns reportedly confirmed on a Wednesday earnings call. That amounts to roughly $15.55 to $186 per million British thermal units.
Its stock, listed on the New York Stock Exchange under CRK, rose by about 10 percent on Feb. 17. By Thursday, it fell to about $5.97.
“This week is like hitting the jackpot with some of these incredible prices,“ Burns told reporters. “Frankly, we were able to sell at super premium prices for a material amount of production.”
Across Texas, about 369,491 outages are currently reported. Neighboring state Louisiana, also hit with cold temperatures by Uri, is reporting 104,402 outages. Comstock reportedly sold gas to parishes in northern Louisiana.
Other gas companies have seen prices rise as Uri knocks power out on a mass scale. Oneok Gas Transportation in Oklahoma reportedly traded at $1,250 per million British thermal units on Wednesday, per Bloomberg, an increase from just $9 one week ago.
Experts have confirmed that Texas’s power plants simply were not structurally prepared for freezing temperatures.