Comstock Resources Secures $2.1 Billion in Deals, Shares Rise 11%
Comstock Resources (NYSE:CRK) announced two major deals totaling $2.1 billion and saw its stock rise by 11% following the news. The first deal involves selling a portion of natural gas assets to SOCAR for $1.65 billion, which will help reduce Comstock's debt from $3.1 billion to $1.5 billion. The company retains control over upstream operations and Pinnacle Gas Services. In addition, Comstock signed a $450 million joint drilling venture with Jerry Jones' family partnership for 27 wells in the Haynesville region. This agreement will see the Jones family fund most of the costs associated with these wells over the next year. The deals come after weak second-quarter earnings where net income dropped by 92% and total revenues fell by 15%, driven by lower oil and gas sales. Despite poor financial performance, institutional interest in Comstock increased slightly as more hedge funds held positions during Q2, although their combined holdings decreased significantly. The new deals are expected to strengthen the company's balance sheet and support development of its Western Haynesville assets.
Tickers: $CRK
Topics: Debt Reduction M&A Strategic Partnership