Publicly-traded gas producer Comstock Resources has seen major growth since billionaire Jerry Jones took over as the largest shareholder in the company. Jerry Jones, owner of the Dallas Cowboys, and Comstock CEO Jay Allison joined Cheddar News to discuss the company’s development and growth prospects.

Cowboys Owner Jerry Jones on Natural Gas Investment

comstock Resources is a publicly traded nat gas producer here in the U. S. Trades on the floor of the new york. Stock exchange operates in north Louisiana and east texas. And it's seen massive growth recently. Production jumping 350% just in the past three years and adjusted net income growing from 29 million to more than $300 million in the same span. Well, it's after jerry jones, the billionaire owner of the Dallas cowboys, took it under his wings in 2018, becoming the biggest shareholder. Now owning 66% of the company earlier, I had a chance to speak with jones and comstock Resources share and C. O. J. Allison down here on the floor about what's been working for the nat gas producer in recent years. We're dry natural gas company with about 372,000 acres. A lot of it's continuous in two different states. And our goal is to provide the lng shippers with the lng that they need to transport it to europe and Asia as well as supply north America with the gas that it needs. We, we either producer market about 2% of all the gas in the US today. So it's a great company to come to the new york stock exchange. We've in in 90 days, we'll have been here 26 years. So it's, it's always one of those days, you pinch yourself and say, can I go open the exchange, particularly if you've got a visionary with you that's invested so much money over so much time uh, to be by your side because without jerry's uh, contrarian, ISM, which is how he looked around the corner, which is contrary to everybody else and said, I like natural gas. I'm going to invest a lot of money in the company and it's worked. So I think as he would say one time were probably eight minutes in the first quarter of the whole game. So it's super exciting. Never been better for the company. There's a long ways to go. Let's talk about some of those investments, jerry, I know you're famous, many people know you As the owner of the most valuable franchise in the NFL, the Dallas Cowboys, but you've actually been in the oil game since the 1970s in August of 2018 sending over 50 oil producing properties to comstock in exchange for majority stake in the company. What do you see in Comstock that led to this deal? Well, they were ahead of everybody regarding of the handful gas play. Now, natural gas is one of the most precious resources we have in the United States and it's a difference maker. And yes, I had been in natural gas, made enough money to buy the cowboys, uh, and had kind of not been. But when I saw where comstock was, when I saw the company, when I saw their acreage position, which in essence is like a butane tank in terms of having the available natural gas, then I went with a company and I put over a billion dollars and I did it in stages. So the more I knew, the more I put in, J for instance and his management team together just bought $5 million worth of stock last week. Why would I say that? Because I really do fundamentally believe, put your money where your mouth is, No one's put more money in natural gas individually than I have over the last three or four years. What's happening is that with all of the dramatic things that are happening around the world and energy, natural gas is green energy and natural gas can come from this texas Louisiana area and people there are generational in working in the gas and oil fields there and they can produce the government, the ability to get a license to build pipelines and take away that's all there. And so this will be providing the gas for Germany. I think it is freedom gas. I'm really excited about comstock. Let me ask you this. I think that that's really helpful certainly for our viewers, potential investors out there. But I also want to talk about the growth prospects elsewhere in the great state of texas jerry. Your investment in comstock Actually beating the growth as you both were discussing at the Dallas Cowboys 300% in the past four years compared to a 58% gain in the value of the Cowboys. It's still worth an estimated $8 billion Jerry to unlocking more value from the Cowboy franchise? Well, first of all, I must tell you, I didn't see the cowboys coming financially as it's evolved over the last 20 or 30 years. Uh, but every chance we had a chance to improve value. We have in the NFL and I have with the Dallas cowboys a little different with comstock and consequently I think comstock and my holdings in comstock have since left the cowboys behind in terms of its ability to grow and multiply. I fully think the comstock is worth more than the campus. Somebody said the cowboys are worth seven or $8 billion. I think comstock has a chance to be worth many times. Then. J last question to you, of course we're entering the colder months here, making our way through fall winter is approaching. What's your outlook on the price of nat gas going forward? Well, I think, you know, gas is around six or $7 right now. We run our, our model as if gas were 3 50 or four, you know, we expect to maybe issue a dividend starting in november. We'll have a board meeting and the goal is to return dollars back to stakeholders. So we always run it at a low model. I mean we've, we've got very little hedges in 2023 then the second half of 23 were unhedged. I think that tells you the attitude if we have really high margins, low cost, great inventory. Uh, we just make adjustments for cap packs with the cost, whatever the commodity process, we're really bullish on gas. Yeah. And I'd say this, I'm the largest stockholder going away and uh, we won't be taking any dollars. We'll either be paying down debt with a dollar Or we will, when we can be putting it in the ground and get some of that $678 gas. I promise you we'll be doing that as well. And that's why I'm excited about the future of this company. We can do both without having to water down or issue capital. That's where we are. We have self internal growth potential on top of the reserves that we are sitting on. Okay, big thanks there again to Comstock chair and ceo jay Allison as well as the Dallas cowboys owner. Comstock is controlling shareholder, jerry jones