Among U.S. small-capitalization oil and gas companies, Comstock Resources (CRK) stands out in several respects.
At the time when many of its peers are aggressively buying into the Permian Basin shale opportunities, Comstock made a decision to exit the play. Earlier this year, the company sold its large, well delineated position in the Delaware Basin (primarily Reeves County, Texas) prospective for the vertical Wolfbone and horizontal Wolfcamp plays to Rosetta Resources (ROSE). This notable transaction had an impressive price tag of $824 million (at closing).
The deleveraging divestiture gave Comstock financial resources to reduce debt to a manageable level and "accelerate value" of the company's highest-return asset, the Eagle Ford, by increasing drilling pace from...
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