Reasons why Comstock Resources stock scored a touchdown this week

This week saw a significant cash injection from an obviously dedicated shareholder.Resource for resonance resonance in Comstockfirms(Comstock) Resources (New York Stock Exchange)stock (market)(Code: CRK)The company's stock price has soared. As of Friday morning, the company's stock price had risen nearly 11% in one week, according to data compiled by S&P Global Market Intelligence.

Cowboys on Horses

That shareholder is Jerry Jones, the veteran oil and gas mogul who already controls a majority of Comstock Resonance's shares (he is better known as the owner, CEO and Mass Manager of the Dallas Cowboys National Football League).

Last week, Comstock Resonance announced that Jones would invest nearly $100.5 million in the company's equity through two businesses he controls. The arrangement was completed on Monday, with Jones acquiring an additional 12.5 million shares, bringing his total ownership to 67%, up from 65%.

Comstock Resonance said it will use most of the new funding from Jones to pay down its bank debt. The company's debt comes from a series of land acquisitions in the western Haynesville field. The company paid $58.7 million for 200,000 acres of undeveloped land.

The company did not specify how it would use the excess proceeds from the sale of shares.

An enthusiastic shareholder

It's not uncommon for existing shareholders to willingly pump nine figures into a company, regardless of its performance. Jones' willingness to support the operations of Comstock Resonance is admirable, and investors have clearly taken note, making them even more optimistic about the company's future.

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Eric Volkman does not own any of the shares listed above.The Motley Fool does not own any of the shares listed above.The Motley Fool has a disclosure policy.

Reasons Why Comstock Resonance Resources Stock Bottomed Out This Week was originally published by The Motley Fool.