Comstock Resources, Inc. Announces Conversion of Convertible Preferred Stock Into Common Stock
FRISCO, Texas, April 30 /PRNewswire-FirstCall/ -- Comstock Resources, Inc. (NYSE: CRK) ("Comstock") today reported that the holders of 1.2 million shares of Comstock's Series A 1999 Convertible Preferred Stock, $10.00 par value, converted their preferred shares into 3 million shares of Comstock's common stock. This conversion will reduce Comstock's annual preferred stock dividend requirement by $1.1 million.
As of April 30, 2003, Comstock's stockholders' equity consists of 32,004,561 shares of common stock and 557,310 shares of the remaining Series A 1999 Convertible Preferred Stock which are convertible into 1,393,275 shares of Comstock's common stock.
"We are pleased to have the opportunity to convert 68% of the outstanding shares of our convertible preferred stock into common shares," stated M. Jay Allison, President and Chief Executive Officer of Comstock. "This conversion will reduce our annual preferred stock dividend payments by $1.1 million as well as increase our common stockholders' equity by $12 million."
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.
Comstock Resources, Inc. is a growing independent energy company based in Frisco, Texas and is engaged in oil and gas acquisitions, exploration and development primarily in Texas, Louisiana and the Gulf of Mexico. The company's stock is traded on the New York Stock Exchange under the symbol CRK.
SOURCE Comstock Resources, Inc.
/CONTACT: Roland O. Burns, Sr. Vice President and Chief Financial Officer
of Comstock Resources, Inc., +1-972-668-8800/
/Web site: http://www.comstockresources.com /
(CRK)