Comstock Resources Is on a Tear — What Is It Saying About the Natural Gas Market?
- Timothy Beggans
- Oct 7
- 2 min read
Comstock Resources has doubled down on natural gas development, signaling it sees sustained strength ahead. Their aggressive strategy is not just a bet on gas — it’s a bet on energy’s role as the backbone for digital infrastructure growth.
The Surge in Power Demand
U.S. electricity demand is reversing years of flat growth, with projected increases of ~1.7% annually through 2026. Driving this surge are:
Data centers & AI compute — commercial computing power demand is soaring.
Bitcoin & crypto mining — chasing cheap, dense loads.
Onshoring of manufacturing — bringing energy-intensive industries back home.
Electricity prices near data-center hubs have surged as much as 267% in five years.
Natural Gas: The Near-Term Backbone
Renewables remain critical, but they can’t ramp as quickly as demand spikes. Natural gas is the only dispatchable, scalable solution in the near term. The EIA forecasts continued strong gas burn for power through 2026, with Henry Hub prices projected to average $3.10/MMBtu in 2025 and $4.00 in 2026. LNG exports — supported by an expanding network of U.S. terminals — add to demand pressure.
Meanwhile, data center developers are moving toward “bring your own generation” models. Some are building natural gas plants alongside facilities to secure reliable supply.
What Comstock’s Strategy Signals
By expanding Haynesville output and midstream ties, Comstock is positioning itself as a key player in supplying gas for the data-center, AI, and industrial boom. Their momentum is more than a stock story — it’s a forward signal of natural gas as the bridge between today’s surging digital economy and tomorrow’s cleaner grid.
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