Comstock’s Jerry Jones Takeover Critical in 3Q Report

November 16, 2018

 

Comstock Resources‘ third quarter 2018 report is divided in half — before Jerry Jones and after Jerry Jones.

The Dallas billionaire and Dallas Cowboys owner made a significant — perhaps critical — investment in Comstock earlier this year, folding his Arkoma Drilling and Williston Drilling into Comstock in a deal reported to be worth $620 million.

The two companies were “contributed” to Frisco-based Comstock on August 14th, in exchange for common stock, in which Jones and his family received more than 88 million newly issued shares resulting in 84% ownership.

In it’s quarterly statement, Comstock said, “The new basis is pushed down to Comstock for financial reporting purposes, resulting in Comstock’s assets, liabilities and equity accounts being recognized at fair value upon the closing of the contribution.”

Also: “The financial results for the first period since closing the Jones Partnerships contribution is for 48 days from August 14, 2018 through September 30, 2018.

“During that period Comstock produced 542,000 barrels of oil and 14.1 billion cubic feet (“Bcf”) of natural gas or 17.4 billion cubic feet of natural gas equivalent (“Bcfe”).

“Oil production averaged 11,300 barrels of oil per day and natural gas production averaged 294 million cubic feet (“MMcf”) per day.

“Comstock’s average realized oil price was $62.21 per barrel and the average realized gas price after hedging was $2.59 per Mcf during this period.

Oil and gas sales for the period were $70.3 million (including realized hedging gains). EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, was $52.9 million and operating cash flow generated was $38.8 million.

See Comstock’s statement here.