Jerry Jones Solidifies $1B Bet on Comstock for Natural Gas Push
Dallas Cowboys owner's total investment in the energy producer now exceeds $1 billion, fueling a high-stakes drilling campaign in Texas's Haynesville Shale.
Billionaire investor Jerry Jones has deepened his high-stakes wager on the future of American natural gas, with his cumulative investment in Comstock Resources Inc. (NYSE: CRK) now surpassing $1 billion. The Dallas Cowboys owner's growing position, which has solidified his control with a 71% stake in the company, is underwriting an ambitious drilling program in a promising, untapped extension of the Haynesville Shale in East Texas.
Shares of Comstock Resources climbed 1.5% to $17.51 in Wednesday trading, pushing the company's market capitalization to approximately $5.2 billion. The move reflects growing investor recognition of Jones's long-term commitment to the natural gas producer, which he sees as a vehicle to unlock what he has called a potential '$100 billion bounty' from the region.
This is not the result of a single new transaction, but rather the culmination of a multi-year strategic investment. Jones has steadily increased his stake, including a notable $100.5 million equity infusion in March 2024, to fund Comstock's capital-intensive exploration and development activities. The focus of this campaign is the Western Haynesville, a geological formation that requires deep, complex, and expensive wells to exploit.
The investment places Comstock at the center of a pivotal trend in the global energy market: the rising demand for U.S. liquefied natural gas (LNG). While domestic natural gas prices have remained subdued, the long-term thesis hinges on the strategic importance of American gas exports to allies in Europe and Asia. Comstock's proximity to the Gulf Coast LNG export terminals positions it as a key potential supplier for this growing international market.
According to the U.S. Energy Information Administration, demand for LNG exports has been robust, with daily flows to major facilities setting new records in October. Jones's bet is that this demand will create a durable, high-value market for Comstock's extensive gas reserves.
Comstock's operational results have shown early promise. The company reported that its first well in the Western Haynesville achieved a strong initial production rate of 41 million cubic feet per day. This success is critical, as it provides a proof-of-concept for the broader development of the area, where Comstock plans to drill nearly 20 net wells this year.
However, the strategy is not without its risks, a fact reflected in the mixed sentiment from Wall Street analysts. The consensus rating on the stock is a 'Hold,' with nine of the 15 analysts covering the company maintaining a neutral stance. While some, like Bank of America, see upside and maintain a 'Buy' rating, others, including Piper Sandler, have expressed caution, pointing to the high costs and financial leverage associated with the company's aggressive drilling program.
With an insider ownership level exceeding 75%, driven almost entirely by Jones, Comstock's strategic direction is firmly tied to its billionaire backer. This alignment between majority shareholder and corporate strategy provides a clear, long-term vision but also concentrates risk. For now, the market is signaling its approval of Jones's conviction, as he doubles down on his bet that Texas shale gas will play a critical role in powering the global economy for decades to come.