COMSTOCK ANNOUNCES $1.65 BILLION STRATEGIC PARTNERSHIP WITH SOCAR AND $450 MILLION DRILLING JOINT VENTURE WITH JERRY JONES
Rhea-AI Summary
Comstock Resources (NYSE: CRK) agreed a binding letter of intent with SOCAR under which SOCAR, or a subsidiary, would buy non-operated working interests in Comstock’s Legacy and Western Haynesville upstream assets and 15% of Comstock’s 73% stake in Pinnacle Gas Services for $1.65 billion in cash, subject to a definitive agreement, regulatory approvals and closing targeted by year-end 2026, effective July 1, 2026.
Comstock plans to use proceeds to cut net debt from $3.1 billion to $1.5 billion as of June 30, 2026 and retain operatorship of all upstream and midstream assets. SOCAR may participate in future Haynesville opportunities and help market gas internationally. Separately, a $450 million Haynesville drilling venture with majority shareholder Jerry Jones will fund most drilling costs on 27 wells over 12 months, with 50% interest reverting to Comstock after a 15% return on investment.
Positive
- $1.65 billion cash consideration for partial interests in Haynesville assets and Pinnacle Gas Services, pending definitive agreement and closing
- Planned debt reduction from $3.1 billion to $1.5 billion net debt as of June 30, 2026 using transaction proceeds
- $450 million Haynesville drilling venture funding 80–85% of drilling and completion costs on 27 wells over 12 months
- Comstock retains operatorship and control of all upstream assets and Pinnacle Gas Services despite selling minority interests
- SOCAR’s option to participate pro rata in future Haynesville opportunities and support international gas marketing
Negative
- Sale of 20% of Comstock’s interest in Legacy Haynesville and up to 15% (later 7.5%) in Western Haynesville reduces long-term working interest
- Transaction remains a letter of intent subject to definitive agreement, government and third-party approvals and year-end 2026 closing conditions
- SOCAR’s 15% return-on-investment threshold delays Comstock’s reversionary increase in Western Haynesville interest until that return is achieved
News Explained
SOCAR’s proposed purchase now has defined upstream and midstream interests, but the transfer remains subject to definitive agreements and closing.
The SOCAR arrangement remains a conditional letter of intent, so the proposed transfer of defined non-operated interests has not yet closed.
SOCAR would acquire 20% of Comstock’s Legacy interest, 15% of its Western Haynesville interest initially—falling to 7.5% after five years and once SOCAR achieves a 15% return—and 15% of Comstock’s 73% Pinnacle stake.
Separately, beginning
Market Reaction – CRK
Following this news, CRK has gained 3.88%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 5 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $14.99. Trading volume is exceptionally heavy at 178.2x the average, suggesting very strong buying interest.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 17 | Western Haynesville well | Positive | -3.6% | Successful deep well re-entry and subsurface evaluation preceded a negative reaction. |
| Aug 12 | Acquisitions and dividend | Positive | -2.4% | Acquisitions, quarterly dividend initiation, and second-quarter results preceded a negative reaction. |
| Jul 29 | Second-quarter earnings | Positive | +0.7% | Production growth and Pinnacle transaction accompanied a positive 24-hour reaction. |
| Jul 01 | Earnings scheduling | Neutral | +0.0% | Second-quarter earnings date and conference call details preceded no price reaction. |
| Jun 15 | Strategic investment | Positive | +2.2% | Sixth Street's Pinnacle investment and debt repayment preceded a positive reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent positive CRK announcements in the record were followed by positive 24-hour reactions, while unrelated peer events were followed by negative reactions.
Key Terms
letter of intent financial
non-operated working interest financial
definitive purchase and sale agreement financial
pro rata participation financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FRISCO, TX, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. (NYSE and NYSE Texas: CRK) ("Comstock" or the "Company") announced today that it has entered into a letter of intent with the State Oil Company of the Azerbaijan Republic ("SOCAR") under which SOCAR or a wholly owned subsidiary of SOCAR would acquire, subject to the terms of the letter of intent and a definitive purchase and sale agreement, (i) a non-operated working interest representing
Under the strategic partnership, SOCAR will have the opportunity to participate in future opportunities generated by Comstock in the Legacy and Western Haynesville at the same percentages SOCAR is acquiring in the transaction and SOCAR will provide opportunities for Comstock to market its natural gas to international customers.
Key Transaction Benefits to Comstock
- Validation of the Value of Comstock’s Asset Base – The
$1.65 billion purchase price provides strong validation of the value upside represented by Comstock's upstream and midstream platforms.
- Introduces a Reputable International Strategic Partner – SOCAR brings its large investment-grade balance sheet to help accelerate value creation for Comstock’s investors as well as the benefits of its Global LNG marketing operations.
- Strengthens Balance Sheet – Comstock intends to use the proceeds from the transaction to reduce total indebtedness which will substantially reduce financial leverage and enhance financial liquidity. Pro forma for the transaction, Comstock's net debt reduces from
$3.1 billion to$1.5 billion as of June 30, 2026.
- Accelerated Development of the Western Haynesville – The resulting stronger balance sheet will support continued delineation and development of Comstock's 545,000 net acres in the Western Haynesville, one of the largest undeveloped natural gas resources in the United States, positioned to serve growing LNG, power generation and data center demand along the Gulf Coast, including the Texas Power Generation Hub in Anderson County, Texas.
- Comstock Retains Operational Control – Comstock will remain operator of all upstream assets and will continue to manage, operate and control Pinnacle Gas Services. Future development and SOCAR's rights to pro rata participation in future leasing and acquisitions within an area of mutual interest will be governed by a development and ownership agreement as a part of the transaction.
- Balanced Long-Term Value Sharing - The transaction structure provides SOCAR with the opportunity to achieve a
15% return on its investment while retaining a7.5% long-term interest in the Western Haynesville upstream assets thereafter. At the same time, the agreed reversion mechanism provides Comstock with increased participation in the future upside of the assets, creating a balanced structure that aligns both parties around their long-term performance.
Comstock also announced that it has entered into a Haynesville shale drilling venture with Jerry Jones, the Company's majority stockholder. Beginning September 1, 2026, a partnership owned by the Jones family will fund the drilling and completion costs of
M. Jay Allison, Chairman and Chief Executive Officer of Comstock, commented: "We are excited to announce a strategic alliance with SOCAR. This partnership introduces a reputable international strategic partner to help accelerate value creation for our investors, while allowing us to materially reduce debt and fully fund the planned development of our Western Haynesville acreage — all while Comstock retains operatorship and control of the upstream and midstream assets while maintaining substantial upside through the reversionary structure. We are also excited about the investment Jerry Jones is making in our Haynesville drilling program which will strengthen our balance sheet and allow us to continue to create value in our vast Western Haynesville assets."
Rovshan Najaf, President of SOCAR, commented: "This partnership brings together SOCAR's and Comstock's extensive experience and capabilities, creating a strong foundation for the further expansion of our strategic cooperation. We are pleased to invest alongside a team with a demonstrated track record in developing the Haynesville and Western Haynesville, and we look forward to a long-term partnership."
Advisors
Wells Fargo is acting as financial advisor to Comstock and O'Melveny & Myers LLP is serving as its legal counsel. J.P. Morgan Securities LLC is acting as financial advisor to SOCAR and Baker Botts LLP is serving as its legal counsel.
About Comstock Resources
Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the NYSE and the NYSE Texas under the symbol CRK.
About Pinnacle Gas Services
Pinnacle Gas Services LLC is a Delaware limited liability company and a subsidiary of Comstock. Pinnacle owns and operates the Pinnacle gathering and treating system, which supports Comstock’s Western Haynesville natural gas operations in East Texas.
About SOCAR
SOCAR, a global energy company headquartered in Azerbaijan, specializes in the extraction, processing, and distribution of energy resources. As the largest integrated energy enterprise in the South Caucasus, SOCAR has a significant international presence, reflecting its important role across global energy markets.
Forward-Looking Statements
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the expected execution of a definitive agreement, the expected timing and completion of the proposed transaction, the receipt of required regulatory approvals, the anticipated use of proceeds, expected leverage and interest savings and future development plans. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein, including the risk that a definitive agreement is not executed, that required approvals are not obtained or are delayed, or that the transaction is not completed on the terms described or at all. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov.
Ron Mills
Vice President of Finance and Investor Relations
Comstock Resources
972-668-8834
rmills@comstockresources.com
Ron Mills Vice President of Finance and Investor Relations Comstock Resources 972-668-8834 rmills@comstockresources.com