Introduction
Recently, Comstock Resources (CRK) has entered into late stage discussions with the beleaguered Chesapeake Energy (CHK) to acquire their Hayneville shale assets for potentially north of $1b. Whilst this type of acquisition is not uncommon, with the oil and gas industry swapping assets on a regular basis. Regardless of whether this acquisition actually proceeds, their financial position is already stretched and thus raises further questions whether they should still be pursuing any acquisitions.
Cash Flows And Debt
Thankfully, the graphs largely speak for themselves, with the first two graphs included