Comstock Resources, Inc. reports recurring developments as an independent natural gas producer focused on the Haynesville Shale in North Louisiana and East Texas. Company news centers on quarterly financial and operating results, natural gas and oil sales, cash flow, adjusted EBITDAX, hedging effects and reserve measures tied to natural gas prices.
Operational updates focus on drilling and completions in the Western Haynesville and legacy Haynesville areas, including wells turned to sales, lateral lengths, initial production rates and well costs. Comstock announcements also cover asset sales, material agreements and capital-structure matters related to its exploration and production business.
Comstock Resources (CRK) announced the pricing of a public offering of 40 million shares of common stock at $5.00 each, anticipated to raise approximately $190.4 million in net proceeds. The funds are designated for the redemption of outstanding Series A Convertible Redeemable Preferred Stock. The offering, which includes a 30-day option for underwriters to purchase an additional 6 million shares, is set to close around May 18, 2020, pending standard conditions. Citigroup and other financial institutions are managing the offering.
Comstock Resources, Inc. (NYSE: CRK) has initiated a public offering of 40 million shares of its common stock, with a further option for underwriters to purchase an additional 6 million shares. The proceeds, estimated at $210 million plus accrued dividends, will be allocated to redeem Series A Redeemable Convertible Preferred Stock and to reduce debt under its bank credit facility. The offering is managed by Citigroup, conducted under an effective registration statement, and is subject to market conditions.
Comstock Resources reported robust financial results for Q1 2020, with a net income of $30 million, translating to $0.15 per diluted share. Adjusted income was $23.6 million or $0.12 per share. Natural gas production surged by 270% year-over-year to 1,349 MMcf per day, attributed to the acquisition of Covey Park Energy, while oil production fell to 4,994 bpd. Oil and gas sales reached $271.3 million, doubling from the previous year. The company remains optimistic about the natural gas market despite short-term price pressures, expecting improved balance later this year.