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Comstock Resources (CRK) Update - Nov

PostPosted: Fri Nov 15, 2019 1:02 pm
by dan_s
Leading Haynesville basin producer Comstock Resources is in discussions to buy the Haynesville assets of Chesapeake Energy in Louisiana, Reuters reported on Wednesday, citing people with knowledge of the talks, a week after Chesapeake warned that it may not be able to service its debt if low prices persist.

Chesapeake and Comstock Resources of Dallas Cowboys owner Jerry Jones have hammered out a basic structure for the potential deal that could be valued at more than US$1 billion, according to Reuters’ sources. The companies could settle on a deal by the end of this year, the sources said, noting that the talks don’t guarantee that an agreement will be reached.

Comstock Resources has been amassing assets in Haynesville in recent months, while Chesapeake Energy warned last week that its ability to comply with the covenants under its revolving credit facilities and other indebtedness could impact its ability to continue as a going concern.