Comstock Resources Inc. (CRK) announced that its Board declared its first dividend payable to its stockholders and has approved an open market share repurchase plan following the divestiture of the Company's West Texas oil and gas properties.
As announced yesterday, Comstock completed the divestiture of it West Texas oil and gas properties which generated $808 million in net proceeds, after selling costs. The company intends to use proceeds primarily to reduce debt and enhance financial flexibility.
The Board of Directors declared a dividend of $0.125 per share to be paid on June 15, 2013 to all stockholders of record as of May 31, 2013. The June 15th dividend is the first dividend made by the Company on its common stock and is intended to be part of an ongoing quarterly program.
The Board also approved an open market share repurchase plan which permits the company to repurchase up to $100 million of its common stock in the open market.
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