Comstock Resources Benefits from $100M Cash Influx from Majority Shareholder

Comstock Resources (NYSE: CRK) will benefit from a $100 million windfall as one of the company’s majority shareholders commits to a significant equity investment. Comstock announced last week that

shareholder, Jerry Jones, has agreed to make an additional $100,450,000 equity investment in the company through two entities.

Following the equity investment, Mr. Jones will own approximately 67% of Comstock’s common shares outstanding, up from 65% before this investment. The investment underscores Mr. Jones’ continued confidence in Comstock and its prospects for growth in the natural gas sector.

The company has been active in acquisitions, and recently completed acquisitions valued at $58.7 millon for the purchase of 200,000 net undeveloped acres in its Western Haynesville play. The investment will allow Comstock to more aggressively pursue opportunities, further expand its operations, explore new opportunities, and solidify its position in the market, at a time when natural gas is at its lowest price in decades.

Comstock says it will use the proceeds from the equity investment to pay down bank debt which was partially incurred to fund its recent asset acquisitions.

About Comstock Resources

Comstock Resources is a leading independent natural gas producer with operations focused on the development of the Haynesville Shale in North Louisiana and East Texas.

Share This Article


About the Author

Comstock Resources Benefits from $100M Cash Influx from Majority Shareholder

Editor Prism MarketView