Dallas Cowboys owner Jerry Jones on Monday purchased a Texas energy company for $2.2 billion, making his oil and natural gas firm a leading producer in one of the largest natural gas basins in the U.S.
Jones’ company, Comstock Resources, struck a $1.1 billion cash-and-stock deal to acquire Covey Park Energy that includes the billionaire putting in $475 million for 50 million new Comstock shares at an agreed price of $6 per share, according to a news release. He is also purchasing $175 million of stock that can be later turned into common shares.
"At closing, Comstock will assume Covey Park's existing $625 million 7.5 percent senior notes, retire amounts outstanding under Covey Park's credit facility, and redeem all outstanding previously issued Covey Park preferred units," according to Comstock Resources.
Jones, who began doing business in the oil industry in the 1970s, compared purchasing the energy company to when he bought the Dallas Cowboys for $150 million in 1989, Forbes reported. Now, 30 years later, the football team is worth about $5 billion and considered the National Football League’s most valuable franchise by Forbes.
Will the ambitious deal turn out to be a good investment for the aging legend? Or will the well Jones has just poured his billions into end up running dry?