| Comstock Resources Prices Secured Notes Worth $700M - Analyst Blog | |
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Upstream energy player Comstock Resources Inc. CRK announced the pricing of secured notes worth $700 million. The notes, which are due to mature in 2020, carry an interest rate of 10%. The offering is likely to close on Mar 13, 2015.
Comstock plans to utilize the proceeds from the offering to repay borrowing under its current bank credit facility and for other general corporate purposes. Comstock also added that in connection with this offering, it has entered into a new bank revolving credit facility of $50 million.
Frisco, TX-based Comstock Resources is an independent oil and gas exploration and production company engaged in the acquisition, exploration, and development of oil and gas properties.
The weak commodity pricing environment has eroded cash of many upstream firms like Comstock and such offerings should offer some relief. However, it increases the debt burden which may weigh on its credit metrics. Moreover, last month the company announced suspension of dividend as another measure of cash preservation. Comstock added that it may reinstate dividend in later quarters depending upon the general economic condition and the company’s cash position. The lingering uncertainty, however, raises concern.
Comstock had earlier announced that it intends to reduce oil-linked spending in 2015 and focus on the Haynesville/Bossier shale plays. Further, the company projected that 2015 will see an increase in natural gas production after three years of decline. These measures may work in its favor.
Currently, Comstock carries a Zacks Rank #3 (Hold).
Better-ranked players from the same industry include Midstates Petroleum Company, Inc. MPO, Range Resources Corporation RRC and WPX Energy, Inc. WPX. All these stocks hold a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RANGE RESOURCES (RRC): Free Stock Analysis Report COMSTOCK RESOUR (CRK): Free Stock Analysis Report WPX ENERGY INC (WPX): Free Stock Analysis Report MIDSTATES PETRO (MPO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Comstock Resources Inc.
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EXPLORATION STAGE |
CODE : CRK |
ISIN : US2057682039 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Comstock Res. is a oil and natural gas development stage company based in United states of america. Its main exploration property is CHAMIZAL in Mexico. Comstock Res. is listed in Germany and in United States of America. Its market capitalisation is US$ 160.9 millions as of today (€ 144.6 millions). Its stock quote reached its highest recent level on July 03, 2008 at US$ 90.61, and its lowest recent point on May 27, 2016 at US$ 0.55. Comstock Res. has 16 166 564 shares outstanding. |