Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Comstock Resources (NYSE:CRK) jumped as much as 18% today after announcing an asset sale.
So what: Comstock is selling 53,306 net acres in the West Texas Permian Basin to Rosetta Resources (NASDAQ:ROSE) for $768 million. The money will be used to pay off debt and increase its drilling program in the Eagle Ford shale.
Now what: Capital expenditures are now expected to be $410 million for drilling activities, of which $312 million will be spent in Eagle Ford. I think the move to reduce debt and improve liquidity will be a positive for shareholders going forward. Still, I'd like to see consistent profits before jumping in, especially at this elevated price.
Interested in more info on Comstock Resources? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
People's United Financial, Inc. (PBCT) Q4 2017 Earnings Conference Call Transcript
PBCT earnings call for the period ending December 31, 2017.
IBM Struggled With the Tax Man in the 4th Quarter
A long-awaited return to actual sales growth was overshadowed by a $5.5 billion one-time tax charge.
1 Big Improvement That Apple Needs to Bring to the New iPhone SE
It's time for a new display.