Dallas Cowboys owner Jerry Jones is increasing his investment in Comstock Resources Inc., a Frisco-based natural gas company, by injecting an additional $100 million. This move comes as Jones acquires 12.5 million shares of the company’s stock at $8.036 per share, boosting his ownership stake to 67% of the company. The investment will be used by Comstock to partially pay down bank debt incurred from acquiring 200,000 undeveloped acres in the Western Haynesville shale play for $58.7 million.
Jones, whose estimated net worth is $13.7 billion, initially bought a majority stake in Comstock in 2018 by exchanging $620 million in oil-producing properties for a majority interest in the company. Subsequently, he invested an additional $475 million when Comstock acquired rival Covey Park Energy in a $2.2 billion deal. The Haynesville Shale, where Comstock operates, is the third-largest natural gas producer in the U.S., according to the U.S. Energy Information Administration. However, weakened natural gas prices have impacted Comstock’s financial results, with quarterly sales dropping to $354 million in the last quarter of 2023 compared to nearly $558 million the previous year.
Despite facing challenges posed by declining natural gas prices, Comstock closed out 2023 with $1.56 billion in revenue, down from $3.6 billion in 2022. Profits for the company totaled about $212 million, reflecting the ongoing struggle in the natural gas market. Jones’ latest investment demonstrates his confidence in the long-term potential of the natural gas industry, as he continues to support Comstock Resources Inc. with additional financial backing.