Comstock's Haynesville Blitz Scores $2.2 Billion Deal

摘要

COMSTOCK RESOURCES INC.is set to improve its field position in the Haynesville,saying it would become the play's leader with the acquisition of private E&P Covey Park Energy LLC.In a joint statement on June 10,the companies announced an agreement for Comstock to acquire Covey Park in a cash and stock transaction worth roughly $2.2 billion.The transaction also includes the assumption of outstanding debt and the retirement of existing preferred units for a total of $1.1 billion.Comstock plans to fund the acquisition through a combination of debt under its revolver and an investment from its largest shareholder,billionaire and Dallas Cowboys owner Jerry Jones.Analysts with Tudor,Pickering,Holt & Co.(TPH)said that when combined with Covey Park,Comstock will be the largest Haynesville operator at 293,000 net acres.”We continue to see the need for additional industry consolidation of the basin to gain meaningful scale,”the TPH analysts said in a research note on June 10.Covey Park is a Dallas-based private independent with properties in the Haynesville and Bossier shale plays of North Louisiana and East Texas.The company was founded in June 2013 as a partnership with private-equity firm Denham Capital and is led by John Jacobi and Alan Levande.The company attempted to launch an IPO that ultimately fizzled.