2024-04-21 11:26:16 ET
Summary
- Comstock received an equity investment of just over $100 million from Jerry Jones.
- The backing of the Jones family reduces Comstock's debt risk, but also can result in dilution at relatively low share prices.
- Comstock also issued $400 million in 6.75% unsecured notes due 2029 at 93% of par.
- I now estimate Comstock's value at $10.25 per share.
- Comstock's unsecured notes are yielding over 8% to maturity and appear to have decent potential.
Comstock Resources ( CRK ) received an equity investment of just over $100 million from Jerry Jones and also issued $400 million in 6.75% unsecured notes due 2029 at 93% of par. These moves help maintain Comstock's liquidity (clearing out the majority of its credit facility borrowings) at a time when low natural gas prices are leading to near-term cash burn....
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For further details see:
Comstock Resources: Increasing Liquidity Through Additional Notes And Equity Investments