Dallas Cowboys owner Jerry Jones is back in the oil and gas game. Jones will invest $75 million in Comstock Resources, but analysts threw down a penalty flag on Comstock’s Eagle Ford Shale divestiture and dilutive refinancing efforts. Analysts fretted that the recapitalization efforts include a “massive share count dilution” that increases its stock count, by some estimates, by 340% to 370%. The company also received less value for its Eagle Ford assets than some had anticipated.
In A&D news, SM Energy announced the sale of $292.3 million worth of noncore assets, continuing its strategy to zero in on Texas’s Midland Basin and Eagle Ford shale plays while reducing the company's debt.
Meanwhile, in Appalachia, efficiency and outreach for upstream and midstream projects in the Marcellus were on the minds of attendees at the Pennsylvania Independent Oil and Gas Association’s recent spring meeting. At the conference, Gary Slagel, government affairs specialist at Steptoe & Johnson and PIOGA board chairman, told Hart Energy he foresees creating a positive relationship with communities that are concerned about how regulatory changes will affect expansion and infrastructure development in the Northeast.
Also, the EIA reported U.S. crude stocks fell unexpectedly last week as refineries hiked output. Crude inventories fell by 4.6 million barrels in the last week. That’s compared with analysts' expectations for an increase of 246,000 barrels.