FRISCO, Texas (AP) -- Comstock Resources Inc. said Wednesday that it will begin paying a dividend of 12.5 cents and that its board approved a $100 million stock buyback plan.
The spending follows Tuesday's announcement of the sale of the Frisco, Texas-based energy company's West Texas oil and gas properties for $808 million in net proceeds. Comstock said the move "substantially" improves its finances, allowing the dividend and buyback program.
The dividend will be paid June 15 to all shareholders of record as of May 31. It's the first dividend on the company's common stock and is expected to be part of an ongoing quarterly program, Comstock said.
Under the stock buyback program, the company will be able to repurchase up to $100 million of its common stock in the open market. It does not require Comstock to buy any specific number of shares.
Comstock shares fell 11 cents to $17.65 in midday trading.