Comstock strikes $1.65 billion SOCAR deal to cut debt in half

Comstock Resources is pursuing a $1.65 billion cash partnership with SOCAR to sell non-operated interests in Legacy and Western Haynesville assets and a 15% stake in Pinnacle Gas Services, retaining operatorship and control of its upstream operations. SOCAR would acquire 20% of Legacy Haynesville and 15% of Western Haynesville, with the Western stake stepping down to 7.5% after five years once SOCAR earns a 15% return, while SOCAR also gains future participation rights in new projects. The companies aim to finalize a definitive agreement by October 31, 2026, with closing expected by year-end, subject to negotiations and regulatory approvals. Proceeds are earmarked to reduce Comstock’s pro forma net debt from about $3.1 billion to roughly $1.5 billion as of June 30, 2026, strengthening the balance sheet to support Western Haynesville development near Gulf Coast LNG demand. Separately, a Jones family drilling venture will fund about 450 million dollars of drilling and completion costs for 27 wells over the next year, with Comstock retaining an upside share once a 15% return is reached. The combined moves are designed to accelerate development of roughly 545,000 net acres in the Western Haynesville while preserving Comstock’s control over operations and marketing.