Comstock To Acquire Covey Park In $2.2 Bln Cash & Stock Deal - Quick Facts

(RTTNews) - Comstock Resources, Inc. (CRK) has executed an agreement with Covey Park Energy LLC, a privately held natural gas company, under which the company will acquire Covey Park in a cash and stock deal valued at approximately $2.2 billion. The acquisition of Covey Park will expand Comstock's position in the Haynesville shale. Covey Park's share owners will receive $700 million in cash, $210 million of a newly issued perpetual convertible preferred stock and 28,833,000 shares of newly issued Comstock common stock at a price of $6.00 per share.

The deal will include the assumption of Covey Park's outstanding debt and the retirement of Covey Park's existing preferred units which total approximately $1.1 billion. Comstock's Board will be expanded to include Covey Park's Co-CEO John Jacobi and Jordan Marye, a Managing Partner of Denham Capital.

To provide financing for the deal, Dallas businessman Jerry Jones will make an additional investment in Comstock bringing his total investment in Comstock to approximately $1.1 billion.