Comstock Resources Announces $2.1B Restructuring Deal

By Ahmed Jamerson • Tuesday, September 01 13:01 • Permanent Link

Comstock Resources said it has lined up two transactions that would reshape its balance sheet and development plans: a $1.65 billion strategic partnership with SOCAR and a separate $450 million drilling venture tied to its majority shareholder, Jerry Jones.

Under the SOCAR deal, the Azerbaijani state oil company or a subsidiary would buy a 20% non-operated working interest in Comstock’s legacy Haynesville upstream assets, a 15% non-operated interest in its western Haynesville upstream assets that would later step down to 7.5% after five years and after SOCAR reaches a 15% return, and 15% of Comstock’s 73% stake in Pinnacle Gas Services. The total cash price is $1.65 billion, with an effective date of July 1, 2026.

Comstock said the transaction would cut net debt from $3.1 billion to $1.5 billion on a pro forma basis as of June 30, 2026, a reduction of $1.6 billion. The company said it would keep operatorship of its upstream assets and continue to control Pinnacle.

The partnership also gives SOCAR the right to participate in future opportunities in the legacy and western Haynesville at the same percentages it is buying now.

Separately, Comstock said a partnership owned by the Jones family will fund 85% of the drilling and completion costs for 18 western Haynesville wells and 80% of nine legacy Haynesville wells over the next 12 months. The program is expected to cost about $450 million. After the investor earns a 15% return, half of the interest in the wells will revert to Comstock.

The two deals together point to a significant shift in capital structure and spending. Comstock is using the SOCAR proceeds to pay down debt while the Jones-backed drilling venture covers most of the near-term well costs, allowing Comstock to keep advancing development across its 545,000 net acres in the western Haynesville with less capital outlay on its own books. Following these announcements, the company's shares moved 5.96%, and are now trading at a price of $15.29. For the full picture, make sure to review COMSTOCK RESOURCES INC's 8-K report.

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