COMSTOCK ANNOUNCES $600 MILLION STRATEGIC INVESTMENT BY SIXTH STREET IN PINNACLE GAS SERVICES

Comstock Resources (NYSE: CRK) announced a $600 million strategic investment by funds managed by Sixth Street into its midstream subsidiary Pinnacle Gas Services.

Rhea-AI Summary

Comstock Resources (NYSE: CRK) announced a $600 million strategic investment by funds managed by Sixth Street into its midstream subsidiary Pinnacle Gas Services. Sixth Street acquired a 27% non-controlling equity stake, implying a $2.2 billion enterprise value for Pinnacle.

Comstock retains a 73% controlling interest, continues to operate Pinnacle under a management services agreement, and used proceeds to redeem $445 million of preferred equity plus accrued dividends, retire all Pinnacle debt, cover transaction costs, and fund working capital. According to Comstock, the transaction is expected to reduce Pinnacle’s fixed charges by about $40 million annually.

Positive

• Sixth Street invests $600 million for a 27% equity interest in Pinnacle
• Transaction implies $2.2 billion enterprise value for Pinnacle Gas Services
• Comstock retains 73% controlling equity interest and operational control of Pinnacle
• Proceeds used to redeem $445 million preferred equity plus accrued dividends
• All outstanding indebtedness at Pinnacle retired with transaction proceeds
• Fixed charges at Pinnacle expected to decline by about $40 million per year

Negative

• None.

Argus Jun 16 session

+2.22% close to close Open Argus

Details

News Market Reaction – CRK

On Jun 16, the first trading day after this news, CRK closed 2.22% above the previous close.

Data tracked by StockTitan Argus for the Jun 16 session.

Key Figures

Strategic investment: $600 million Enterprise value: $2.2 billion Retained equity stake: 73% +5 more

Strategic investment

$600 million

Sixth Street investment in Pinnacle Gas Services

Enterprise value

$2.2 billion

Implied enterprise value for Pinnacle Gas Services

Retained equity stake

73%

Comstock’s controlling common equity interest in Pinnacle post-transaction

Retained stake value

$1.6 billion

Value of Comstock’s 73% interest in Pinnacle at transaction valuation

Preferred equity redemption

$445 million

Amount used to retire Pinnacle preferred equity securities

Fixed charge reduction

$40 million per year

Expected annual reduction in Pinnacle fixed charges

Pinnacle interest sold

27%

Non-controlling common equity interest acquired by Sixth Street

Western Haynesville acres

540,000 net acres

Comstock’s development position in Western Haynesville

Historical Context

5 past events · Latest: May 05

5 events

1. May 05

   Q1 2026 earnings

   24h Move

   -13.5%

   Reported Q1 2026 sales, cash flow, adjusted EBITDAX and net income.

2. Apr 08

   Earnings call notice

   24h Move

   -4.0%

   Announced Q1 2026 earnings release date and conference call details.

3. Mar 23

   Power hub siting

   24h Move

   -2.3%

   Named Western Haynesville site for large Texas natural gas-fired power hub.

4. Feb 11

   Q4 2025 earnings

   24h Move

   -6.1%

   Released Q4 2025 and full-year results and 2026 capex and activity plans.

5. Jan 12

   Earnings call notice

   24h Move

   +5.6%

   Set Q4 2025 earnings release date and conference call logistics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

enterprise value, preferred equity securities, working capital, non-controlling common equity interest, +4 more

8 terms

enterprise value financial

"Sixth Street's investment values Pinnacle at a $2.2 billion enterprise value."

Enterprise value is the total worth of a company, reflecting what it would cost to buy the entire business. It includes the company's market value plus any debts, minus its cash holdings, offering a comprehensive picture of its true value. Investors use it to compare companies regardless of their capital structures, helping them assess how much they would need to pay to acquire the business.

View in glossary

preferred equity securities financial

"used to fully extinguish and retire the Pinnacle preferred equity securities for $445 million"

Preferred equity securities are a class of ownership in a company that sits between common stock and debt: they typically pay a fixed dividend like an interest payment and have priority over common shares for dividend payments and claims on assets, but usually carry limited or no voting rights. For investors, they matter because they offer steadier income and greater downside protection than common stock while generally yielding less upside, so they affect a portfolio’s income profile and a company’s capital structure.

working capital financial

"all outstanding indebtedness at Pinnacle, transaction costs and for working capital."

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

non-controlling common equity interest financial

"acquired a 27% non-controlling common equity interest in Pinnacle."

An ownership stake consisting of common shares that does not give the holder the power to control a company’s decisions or board. It matters to investors because these shares share in profits, losses and liquidation proceeds like any common stock but typically have limited influence over strategy and governance; think of it as owning a few seats at a large table — you share the meal and risk but can’t decide the menu, which affects value and liquidity.

midstream subsidiary technical

"sold a minority equity interest in Comstock's midstream subsidiary, Pinnacle Gas Services"

A midstream subsidiary is a company owned by a larger firm that handles the transportation, storage and basic processing of oil, natural gas or other energy products—think of it as the toll-road operator that moves commodities from production sites to markets. It matters to investors because midstream businesses often earn steady, fee-based income with different risks than producers, so their performance affects a parent company’s cash flow stability, liability exposure and capital needs.

fixed charges financial

"expected to materially reduce the fixed charges of Pinnacle by approximately $40 million"

Fixed charges are regular, contractual payments a company must make regardless of how well its business is doing, such as interest on debt, lease payments, and certain insurance or rental obligations. They matter to investors because these unavoidable payments reduce the cash available for reinvestment, dividends, or absorbing downturns; like a household with a fixed mortgage and car payment, higher fixed charges make a company less flexible and increase financial risk.

management services agreement financial

"control the business under a management services agreement with Comstock."

A management services agreement is a contract where one party hires another to run specific business functions—like finance, operations, or marketing—on its behalf, similar to hiring an external manager to run part of a household. Investors care because the deal spells out fees, responsibilities, and decision-making authority, which affect a company’s costs, operational performance and governance, and can change future cash flow and risk.

infrastructure technical

"critical energy infrastructure needed to meet the rapid growth in energy demand"

Infrastructure is the network of long-lasting physical and digital systems—like roads, bridges, power lines, water pipes, data centers and broadband networks—that keep an economy running, similar to a city’s backbone. For investors it matters because these assets are costly to build but often provide steady, predictable cash flow or value over many years, are influenced by government policy and regulation, and can offer diversification or inflation protection in a portfolio.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FRISCO, TX, June 15, 2026 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. (NYSE: CRK) announced today that it has sold a minority equity interest in Comstock's midstream subsidiary, Pinnacle Gas Services LLC ("Pinnacle"), to certain funds managed by Sixth Street, a leading global investment firm.

Sixth Street invested $600 million in Pinnacle and acquired a 27% non-controlling common equity interest in Pinnacle. Sixth Street's investment values Pinnacle at a $2.2 billion enterprise value. Upon closing the transaction, Comstock retained a 73% controlling common equity interest in Pinnacle, valued today at approximately $1.6 billion, and continues to manage, operate and control the business under a management services agreement with Comstock.  

The proceeds from the investment were used to fully extinguish and retire the Pinnacle preferred equity securities for $445 million plus accrued dividends, all outstanding indebtedness at Pinnacle, transaction costs and for working capital.

Key Transaction Benefits to Comstock

• Pinnacle and Western Haynesville Value Confirmation – Investment implies a $2.2 billion enterprise value for Pinnacle validating the significant value Comstock has created from its midstream infrastructure and reflecting the expected future production growth resulting from Comstock's development of its 540,000 net acres in the Western Haynesville.
  
  
• Strengthens Balance Sheet and Reduces Fixed Charges – The transaction is deleveraging; with proceeds used to extinguish and retire all preferred equity securities and outstanding indebtedness at Pinnacle. Further, this transaction is expected to materially reduce the fixed charges of Pinnacle by approximately $40 million per year.
  
  

• Increased Comstock's Ownership in Pinnacle's Future Upside – Comstock retains a controlling 73% equity interest in Pinnacle. Upon Sixth Street achieving certain return hurdles, Sixth Street's ownership in Pinnacle will be reduced from 27% to 19.5% and Comstock's ownership of Pinnacle will increase from 73% to 80.5% compared to the 70% it was entitled to prior to the redemption of the preferred units.
  
  
• Maintain Operational Control – Comstock will continue to manage, operate, and control all key strategic and operational decisions at Pinnacle, preserving full alignment between its upstream and midstream operations.
  
  

M. Jay Allison, Chief Executive Officer of Comstock, commented:

"This transaction is another validation of the future potential of Comstock's Western Haynesville acreage, which is well positioned to service the growing demand for natural gas in our region. The Western Haynesville represents one of the largest undeveloped natural gas resources with access to the growing demand along the Gulf Coast and will also serve the recently announced Texas Power Generation Hub in Anderson County Texas. This transaction with Sixth Street represents an important milestone for Comstock and a strong validation of the value we have created in the Western Haynesville.   Importantly, through this investment, we are strengthening our balance sheet by reducing debt and simplifying our capital structure — all while increasing our substantial majority ownership and maintaining full operational control of the Pinnacle system. We are excited to welcome Sixth Street as a long-term partner as we continue to build out one of the premier midstream platforms in the country."

Zack Winegrad, Partner and Co-Head of Energy and Co-Head of Global Infrastructure at Sixth Street, commented:

"Comstock is one of the leading independent natural gas companies in North America today, and we are delighted to partner with them on this important transaction. The transaction highlights Sixth Street's focus on providing large-scale, flexible capital solutions to support the development of critical energy infrastructure needed to meet the rapid growth in energy demand from data centers, hyper scalers, global LNG, and the secular electrification trends underway in the economy more broadly. Pinnacle's midstream infrastructure sits at the heart of one of the most prolific natural gas basins in North America, and we are excited to invest alongside the Comstock team as they execute on a compelling growth plan. This investment reflects our conviction in the critical role natural gas infrastructure will play in meeting long-term U.S. energy demand, and we look forward to being a supportive, long-term partner to Comstock as they continue to scale the Pinnacle platform."

Advisors

Jefferies LLC acted as financial advisor to Comstock, and O'Melveny & Myers served as its legal counsel.

Wells Fargo and RBC Capital Markets acted as financial advisors to Sixth Street and Latham & Watkins served as its legal counsel.

About Comstock Resources

Comstock Resources is a leading independent natural gas producer with operations focused on the development of the Haynesville Shale in North Louisiana and East Texas.

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 development operations in East Texas.

About Sixth Street

Founded in 2009, Sixth Street is a leading global investment firm with over $130 billion in assets. Sixth Street's flexible, long-term oriented capital base and cross-platform collaboration allows the firm to invest thematically across sectors, geographies, and asset classes. Sixth Street has more than 750 team members, including over 300 investment professionals in offices around the world. For more information, visit https://www.sixthstreet.com.

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. 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. 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 - Finance and Investor Relations
Comstock Resources
972-668-8834
rmills@comstockresources.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Comstock Resources (CRK) announce about the $600 million Sixth Street investment in June 2026?

Comstock announced a $600 million strategic investment by funds managed by Sixth Street into Pinnacle Gas Services. According to Comstock, Sixth Street received a 27% non-controlling equity stake, valuing Pinnacle at a $2.2 billion enterprise value and confirming the value of its Western Haynesville midstream assets.

How does the Sixth Street deal affect Comstock’s ownership and control of Pinnacle Gas Services (CRK)?

Comstock retains a 73% controlling common equity interest in Pinnacle after the transaction. According to Comstock, it will continue to manage, operate, and control Pinnacle under a management services agreement, preserving alignment between its upstream operations and the midstream infrastructure in the Western Haynesville.

What valuation does the Sixth Street investment place on Pinnacle Gas Services for Comstock Resources (CRK)?

The Sixth Street investment implies a $2.2 billion enterprise value for Pinnacle Gas Services. According to Comstock, this valuation validates the significant value created in its midstream infrastructure and reflects expectations for future production growth from its 540,000 net acres in the Western Haynesville.

How will the Sixth Street transaction impact Pinnacle’s debt and preferred equity for Comstock (CRK)?

Transaction proceeds were used to fully redeem Pinnacle’s preferred equity and retire all outstanding debt. According to Comstock, $445 million of preferred equity plus accrued dividends were extinguished, and remaining funds covered Pinnacle indebtedness, transaction costs, and working capital needs, simplifying the subsidiary’s capital structure.

What fixed-charge savings does Comstock (CRK) expect from the Pinnacle and Sixth Street transaction?

Comstock expects the transaction to materially reduce Pinnacle’s fixed charges by about $40 million per year. According to Comstock, eliminating preferred equity and all outstanding indebtedness at Pinnacle lowers ongoing financial obligations, supporting a stronger balance sheet and improved cash flow profile at the midstream subsidiary.

How could Comstock’s ownership in Pinnacle change after return hurdles in the Sixth Street deal (CRK)?

Comstock states that Sixth Street’s ownership could decrease from 27% to 19.5% if certain return hurdles are met. According to Comstock, its Pinnacle ownership would then rise from 73% to 80.5%, compared with 70% entitlement prior to the redemption of the preferred units.