Well, we already know the Cowboys were winning on the field, but Dallas Cowboys owner Jerry Jones says his natural gas company hit the jackpot after the recent Texas winter storm.
According to The Dallas Morning News, Jerry Jones’ natural gas company Comstock Resources Inc. has “been able to sell gas from its Haynesville Shale wells in East Texas and northern Louisiana at premium prices since Thursday.”
With a winter storm that has left every one of Texas’s 254 counties under a winter storm warning, the need for natural gas is skyrocketing. Some spots have seen over $1,000 per million British thermal units due to the demand.
Chief financial officer Roland Burns spoke on Wednesday during an earnings call about what this meant for the company.
“Gas from Comstock’s Haynesville wells was sold on the spot market for between $15 and $179 per thousand cubic feet. That translates to between $15.55 and $186 per million British thermal units.”
After suffering from a four-year low due to the cold that has forced wells to close, Charles Nevle, senior director for North American gas at IHS Markit, says it may take until March to replenish supplies from damage.
Good News for Jerry Jones
However, the arctic blast means good news for Jerry Jones and his company.
“This week is like hitting the jackpot with some of these incredible prices,” Burns said. “Frankly, we were able to sell at super premium prices for a material amount of production.”
Considering that, as of December 2019, Jerry Jones had a net worth of $8.5 billion, I’m not entirely sure he needs to hit another jackpot. Consider sharing the love. I’ll forward you my Venmo name.
A week ago, spot gas traded for just $3.73. Today it’s selling at $20 or higher and continues to rise.
In addition, the need for next-day delivery at the Oneok Gas Transportation hub in Oklahoma was being traded at $1,250 per million British thermal units yesterday. David Hoy, a trader at Dynasty Power in Calgary, reports that the number was up almost $100 on Tuesday and only $9 a week ago.
As of yesterday, nearly three million Texas residents were without power. Today, that number was less than 500,00 and is continuing to improve. However, the widespread power outages have caused trickle-down issues such as the state’s supply of heating, water, food, and medicine.