Dallas Cowboys owner Jerry Jones and the oil and gas firm he controls, Comstock Resources are acquiring another Dallas firm for nearly $1.6 billion. It will make Comstock the leading natural gas producer in the Haynesville Shale of northeast Texas and southwest Arkansas.
Comstock, based on Frisco, Texas is buying the privately-backed Covey Park Energy in a cash and stock deal worth $1.6 billion. Jones plans to invest another $475 million in cash to finance the deal, making sure he keeps the controlling ownership stake.
Covey Park is backed by the Houston-based private equity firm Denham Capital.
“I am excited to provide the funding and to team up with Denham Capital to combine the two companies to create the basin leader in the Haynesville shale,” Jones said in the announcement. “This combination is another step toward completing my vision to create an industry leading natural gas company.”
The Haynesville is like other shale plays where it has seen a drop in overall drilling activity but producing at record-high gas volumes.