| 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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EXPLORATEUR |
CODE : CRK |
ISIN : US2057682039 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Comstock Res. est une société développant des projet miniers de pétrole et de gaz basée aux Etats-Unis D'Amerique. Son principal projet en exploration est CHAMIZAL au Mexique. Comstock Res. est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 166,8 millions US$ (155,9 millions €). La valeur de son action a atteint son plus haut niveau récent le 03 juillet 2008 à 90,61 US$, et son plus bas niveau récent le 27 mai 2016 à 0,55 US$. Comstock Res. possède 16 166 564 actions en circulation. |