Billion-Dollar Energy Asset Sale
Comstock Resources Announces $1.65 Billion Deal With SOCAR to Reduce Debt
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Key Points
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The Jones family drilling venture will fund 85% of drilling/completion costs for 18 Western Haynesville wells and 80% for 9 Legacy Haynesville wells over the next 12 months, with the program starting September 1 and totaling about $450 million.
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Upon achieving a 15% return on the Jones drilling venture, 50% of its interest in the wells will revert to Comstock.
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The SOCAR transaction has an effective date of July 1, 2026, with a target definitive purchase and sale agreement by October 31, 2026 and closing by year-end, subject to negotiations and regulatory approvals.
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SOCAR would acquire 15% of Comstock's 73% ownership in Pinnacle Gas Services, effectively around 11% of Pinnacle, in addition to 20% of Legacy Haynesville and 15% of Western Haynesville (with the Western stake stepping down to 7.5% after five years once a 15% ROI is achieved).
Comstock Resources announced a $1.65 billion cash deal with Azerbaijan's SOCAR to sell stakes in its Haynesville shale assets, targeting a major debt reduction Reuters. The transaction would slash Comstock's net debt from roughly $3.1 billion to about $1.5 billion, strengthening the company's balance sheet to fund Western Haynesville development near Gulf Coast liquefied natural gas demand Kalkinemedia.
SOCAR would acquire 20% of Legacy Haynesville and 15% of Western Haynesville assets, with the Western stake stepping down to 7.5% after five years once SOCAR earns a 15% return PGJOnline. Comstock retains full operatorship and control of upstream operations while separately partnering with a Jones family drilling venture to fund $450 million in drilling costs for 27 wells over the next year Prism Market View.
SOCAR Acquires Minority Stakes in Two Haynesville Fields
SOCAR will pay $1.65 billion in cash for minority stakes in Comstock's Haynesville operations Citybiz. The Azerbaijan state-owned energy firm gets 20% of Legacy Haynesville and 15% of Western Haynesville, plus roughly 11% of Pinnacle Gas Services, Comstock's midstream business Kalkinemedia.
The Western Haynesville stake has a step-down clause. After five years, once SOCAR earns a 15% return on its investment, the stake shrinks to 7.5% Reuters. SOCAR also gains future participation rights in new projects, securing longer-term upside beyond the initial transaction PGJOnline.
Jones Family Drilling Program Funds 27 New Wells
A Jones family drilling venture will fund about $450 million to drill and complete 27 wells over the next 12 months, starting September 1 Prism Market View. The program covers 18 Western Haynesville wells and 9 Legacy Haynesville wells, with the Jones group covering 85% of drilling costs for Western and 80% for Legacy.
Once the Jones venture achieves a 15% return on its investment, 50% of its well interests revert to Comstock Prism Market View. This structure lets Comstock preserve upside while transferring near-term capital costs to the drilling partner, accelerating development of the company's 545,000 net acres in Western Haynesville Citybiz.
Debt Reduction and Timeline to Finalize the Deal
The $1.65 billion in SOCAR proceeds will cut Comstock's pro forma net debt to roughly $1.5 billion as of June 30, 2026, down from approximately $3.1 billion Reuters. This halving of debt gives Comstock financial flexibility to invest in Western Haynesville assets near growing Gulf Coast LNG export infrastructure Kalkinemedia.
The SOCAR transaction has an effective date of July 1, 2026. Comstock and SOCAR target a definitive purchase and sale agreement by October 31, 2026, with closing expected by year-end, pending final negotiations and regulatory approvals Reuters. Both partnerships underscore Comstock's strategy to maintain operational control while monetizing assets and reducing leverage PGJOnline.
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