Comstock Resources (CRK) Update - Aug 20

[dan_s]

Aug 18 (Reuters) - Dallas Cowboys owner Jerry Jones' Comstock Resources (CRK.N) oil company is offering to sell properties in North Dakota's Bakken oilfield, a marketing document seen by Reuters shows, as rising energy prices lift buying and selling in the sector.

Crude oil prices are up about 38% year-to-date as economies bounce back and fuel demand recovers from travel restrictions to curb the pandemic. U.S. shale oil companies also are seeking larger scale to drive returns and operational efficiency.

A representative for Comstock did not immediately respond to a request for comment.

The properties on offer include a non-operated working interest in 436 wellbores. The holdings are valued at about $200 million based on futures pricing, according to the document.

The 427 actively producing wells in the portfolio most recently had a six-month average net production of 6,400 barrels of oil equivalent per day, the teaser said.

The value of second-quarter deals this year hit $33 billion for more than 40 deals - the highest quarterly value since the second quarter of 2019, consultancy Enverus found.

Comstock's decision to offload its Bakken assets comes as deal activity is rising in the Haynesville shale in Louisiana, where it produces most of its energy. Louisiana rivals Southwestern Energy recently bought Indigo Natural Resources and Chesapeake Energy's acquired Vine Energy.

"High oil prices and a resurgence in Bakken M&A activity may have led to the company’s decision to market its non-operated interests to help fund participation in Haynesville consolidation," said Andrew Dittmar, a senior M&A analyst with data provider Enverus.

[Fraser921]

They missed that boat as oil is down 10-15 bucks from the highs. They will be lucky to get $ 150-175 m for it. I hope CLR buys it

[Fraser921]

when i wrote $150-175 crude was down 10 from the highs

crude has since rallied back to $ 72

170 m bid is fair, I'm sure CRK would be happier with 185 m

[Fraser921]

They only got 154 m that's kind of shocking based on where oil is at

I was pretty darn close with my August estimate..they wanted 200 m for it

.. Your humble servant