Comstock Resources, an oil and gas company based in Frisco, Texas, has announced that it will suspend its quarterly dividend due to the continued downturn in natural gas prices. This decision comes as natural gas prices for March delivery experienced a seventh consecutive drop on the Nymex exchange, closing at $1.689 per million British thermal units.
Adjustments Made to 2024 Budget
In response to the ongoing challenges posed by weak natural gas prices, Comstock Resources has also made adjustments to its 2024 budget. Alongside the dividend suspension, the company plans to reduce the number of operating drilling rigs from seven to five. However, it will continue to deploy two of these rigs in the Company’s Western Haynesville play.
Furthermore, Comstock Resources has stated that it intends to allocate approximately $750 million to $850 million in 2024 for development and exploration projects. These funds will facilitate the drilling of 46 (35.9 net) operated horizontal wells and the sale of 44 (38.2 net) operated wells throughout the year.
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