Billionaire Dallas Cowboys Owner and Oil Man Cashes in on Texas Blackout Crisis
While the citizens of Texas are facing a crisis of massive proportions, caused in large part by the failure of natural gas companies weather their equipment, a natural gas company owned by Dallas billionaire and Dallas Cowboys owner Jerry Jones, is benefiting from the crisis.
The demand for the little natural gas that the state has access to has soared during the crisis, with millions of people without electricity this week and, consequently, the wholesale prices of gas have increased almost 300 times. This week, some Texas residents reported experiencing massive utility bills – from one man Bill shot to over $ 8,000 over the course of two days – while navigating Power outages, food shortages and evidence of boiling water.
But not everyone struggles. The natural gas company’s chief financial officer (CFO) owned by Jones, Comstock Resources Inc. to say that in a conversation with investors about the crisis: “This week is of course like hitting the jackpot with some of these incredible prizes…. OpenWe were able to sell at super premium prices for a substantial amount of production. ”
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While many Texans are concerned about finding warm shelter and water, Comstock is apparently having a great day with their gains from this crisis.
The company could sell its product at anywhere from six to 74 times as much as last quarter’s average, according to the figures from NPR, the CFO said on the call. Meanwhile, investors were apparently pleased with the news as stocks in the company shot about 12 percent in the days around February 17th, the day of the call.
Jones who had $ 1.1 billion has been invested in the company 2019 will likely benefit significantly from this energy crisis, which experts now say was largely due to outages in the Natural gas industry in the state as a whole.
This wouldn’t be the first time energy company executives have benefited from environmental crises – when power outages occurred in California in recent years to prevent forest fires, bankrupt California electricity company Pacific Gas & Electric paid off millions in bonuses to its executives. Some of these bonuses were for Achieve security goals, even though PG&E has caused large and devastating fires in the state. In the aftermath of the destructive fire season, the state supply commission allowed increases in the energy costs of consumers.
Likewise, Texans could pay out of pocket for the high prices Comstock celebrates. Although prices have skyrocketed in the past few days, higher electricity bills cannot go away with the energy crisis. The Texas Public Utility Commission, which oversees electricity prices, stated that “Energy prices should reflect the scarcity of supply.” Energy experts said these high prices will come at some point to be paid for by consumers.
As the crisis continued on Wednesday, Rep. Cori Bush, D-Missouri, said things like Comstock’s massive profits shouldn’t be allowed this week and that utilities like water and electricity “guaranteed for everyone. ”” Companies shouldn’t be allowed to benefit from our suffering ” she tweeted. “Utilities must be public goods.”
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