How High gas prices are helping Dallas Cowboys owner Jerry Jones earn billions
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Jerry Jones
Jerry Jones is no stranger to having high business acumen, he may not be the most intelligent mind on the football field or in terms of operating the Dallas Cowboys. Still, on Wall Street, there is no denying Mr. Jones’ vision and instincts on how a particular company is likely to perform in the near future. As is the case with the NFL owner, at times you have to risk a lot to earn a lot and only people with a larger asset pool are often able to do so fearlessly. Jerry Jones bet big on a natural gas company and won big as well.
Jones took control of Comstock Resources Inc, nearly four years ago when the natural-gas market was at an all-time low, however, due to the recent war between Russia and Ukraine, global fuel supply is at an all-time low and prices are going through the roof. The Cowboys owner invested $1.1 billion initially in 2018 as per the Wall Street Journal and in just a time duration of four years his bet has paid off.
“I’m not at all thinking it’s payday time, I think we’re in the first quarter of this game”: Jerry Jones is not looking to cash out on his bet just yet
Jerry Jones’ stake now amounts to $2.6 billion which is more than twice the initial amount that he invested. He has a lot of experience strategizing in the oil business long before he owned the Dallas Cowboys, he expects to get a much greater return on his investment. Natural gas has been the top performer in assets over the last year owing to reduced production, natural phenomenon, and the war in Ukraine which has led to less dependency on Russian oil.
Comstock is a company that is based in Frisco, Texas, and has been a star in the market, the surge initially began in 2021 when a massive winter storm in February of 2021 shut down the power in the state. Since then the company’s shares are up by 81%. Jones has put himself in a position such that for every $1 that the stock goes up or down, the Cowboys owner’s stake that is nearly 66%, a mix of convertible and non-convertible preferred shares earns him or loses him nearly $182 million.
Though in the bigger picture, Jerry Jones is a winner, in the last month or so, Comstock has fallen and lost $1.4 billion after a fire destroyed a big Texas Liquified Natural Gas facility. Jerry Jones has been in oil for over five decades now and he owns over 500 active oil wells that were all drilled in the 1970s. He used proceeds from them to purchase the Cowboys in 1989 for just $140 million and during that time, the team was actually burning through cash like a furnace. Every month, the team lost a million but today, the Cowboys are the most valuable team in the United States with a value of $6.5 billion. Whenever it counted the most, Jerry Jones’ gambles have paid off.
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