Comstock takes Haynesville lead with US$2.2bn Covey Park deal

Comstock Resources today tightened its grip on the Haynesville basin with a US$2.2 billion cash-and-stock deal to buy privately-held Covey Park.

Robert Clarke, director, US Lower 48, at global natural resources consultancy Wood Mackenzie, said: “The deal creates a Haynesville leader with the pro-forma company having access to the three best parts of the play: Caspiana Core in Louisiana, the Shelby Trough in East Texas, and the emerging Carthage sweet spot.

“Before the deal, Comstock's best acreage was confined to Louisiana, but inventory was limited. Adding acreage – specifically around Carthage – should have been a big driver for Comstock.

“By our models, the Shelby acreage is a jewel too, with low breakevens.”

He added: “Covey Park was a massive success story driven by a team that was hugely experienced in the Haynesville. The acquisition pushes Comstock further down the gas cost curve.”