Few days ago, but Comstock acquisition multiples:
$333 million deal for 68k gross, 44k net acres in Reeves County, TX
Prospective for Wolfbone (Bone Springs / Wolcamp), ~86% operated
23,200 MBOE proved reserves (75% oil, 90% PUDs), $14.35/BOE
178 MMBOE resource potential, 935 vertical wells @ 40 acre spacing
1400 BOE/d for an absurd $238k/flowing bbl
46 net wells in '12
$4-$4.5MM/well, so about $170-200MM campaign
180-250 MBOE EURs
150-300 BOE IPs
60 day cycle times
Land and drilling costs total about $35/BOE. Pricing is WTI less 1-2. The gas is high BTU, so double NYMEX for the entire stream (Concho realized $8.31 last qtr for its gas). Commented LOE wouldn't change more than a few pennies, implying around $6-7/BOE operating costs.
Comstock produced 285MMcfe/d last qtr, 95.5% gas. Leverage was 2.5x on $300MM EBITDAX. CRK is yet another gassy e&p dealing with the harsh realities of the nat gas curve ($4.18 '12-'14 strip). They have a very low cost structure, but even the low-cost gassers have to be resigned to low prices for longer. They are funding the deal under the revolver, with plans to sell some non-core assets and SGY stock to raise cash for debt repayment. Borrowing base goes to $700mm with the deal but they had $150mm outstanding on RC at 9/30 so a bond deal to clean the revolver up seems likely. It looks like reserve leverage is still only about a buck pf for the deal, but the PD% will drop below 50%. Looks like existing CRK bonds in high 8s.