UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): November 16, 2021
(Exact Name of Registrant as Specified in Charter)
| (State or other jurisdiction incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices)
(972 ) 668-8800
(Registrant's Telephone No.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 Other Events
On November 16, 2021, Comstock Resources, Inc. ("Comstock" or the "Company") issued a press release announcing that it has closed on the sale of its Bakken shale non-operated properties to Northern Oil & Gas, Inc. for total consideration of $154 million, before selling expenses.
A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits
Exhibit No. | Description | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| COMSTOCK RESOURCES, INC. | ||||||||
| Dated: November 16, 2021 | By: | /s/ ROLAND O. BURNS | ||||||
| Roland O. Burns | ||||||||
| President and Chief Financial Officer | ||||||||
Exhibit 99.1
 | 5300 Town and Country Blvd., Suite 500 | ||||
| Frisco, Texas 75034 | |||||
| Telephone: (972) 668-8834 | |||||
| Contact: Ron Mills | |||||
| VP of Finance and Investor Relations | |||||
| NEWS RELEASE | |||||
For Immediate Release
COMSTOCK RESOURCES, INC. ANNOUNCES CLOSING OF BAKKEN DIVESTITURE
FRISCO, TEXAS, November 16, 2021 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today announced it has closed on the sale of the previously announced divestiture of its Bakken shale non-operated properties for total consideration of $154 million, before selling expenses with an effective date of October 1, 2021. The properties sold include non-operated interests in 442 producing wells (68.3 net) producing approximately 4,500 barrels of oil equivalent per day. Comstock expects to recognize a pre-tax loss of $150-$160 million on the divestiture.
A portion of the sales proceeds will be used to fund a $36.4 million acquisition of predominantly undeveloped Haynesville shale acreage in East Texas. The acquisition includes 22,175 net acres in Harrison, Leon, Panola, Robertson and Rusk Counties and includes interests in 38 (18.8 net) producing wells with current gas production of 1.7 MMcf/day. Approximately 95% of the acreage to be acquired is held by production. An affiliate of the Company's majority stockholder is acquiring the remaining 50% of the acreage and wells alongside Comstock. Comstock will operate the drilling program and has identified 104.4 net drilling locations on the jointly acquired acreage. The acquisition is expected to close before year-end.
"This value adding bolt-on acquisition will add 52.2 high quality net drilling locations to Comstock's prospect inventory and will allow us to extend the lateral length on 19 of our existing drilling locations by more than 3,000 feet", stated M. Jay Allison, Chairman and Chief Executive Officer of Comstock.
About Comstock Resources
Comstock Resources is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the New York Stock Exchange under the symbol CRK.
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 the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.