Sixth Street invests $600M in Comstock (CRK) midstream unit Pinnacle
Rhea-AI Filing Summary
Comstock Resources has brought in a new long-term partner for its midstream business by selling a 27% non‑controlling common equity interest in its subsidiary Pinnacle Gas Services to funds managed by Sixth Street for $600 million. The deal implies a $2.2 billion enterprise value for Pinnacle and values Comstock’s retained 73% controlling stake at about $1.6 billion. Comstock continues to manage and operate Pinnacle under a management services agreement, keeping strategic and operational control aligned with its Haynesville upstream operations.
Comstock used the proceeds to redeem $445 million of Pinnacle preferred equity plus accrued dividends, retire all of Pinnacle’s outstanding debt, cover transaction costs, and provide working capital. The company expects this structure to materially reduce Pinnacle’s fixed charges by about $40 million per year. Over time, if Sixth Street achieves certain return hurdles, its ownership may step down from 27% to 19.5%, increasing Comstock’s Pinnacle stake from 73% to 80.5% compared with 70% before the preferred unit redemption.
Positive
- $600 million monetization of Pinnacle at a $2.2 billion enterprise value, confirming significant midstream value and providing substantial cash while Comstock retains a 73% controlling stake.
- Balance sheet and fixed-charge improvement at Pinnacle, with $445 million of preferred equity and all debt retired, expected to reduce annual fixed charges by about $40 million and simplify the capital structure.
Negative
- None.
Insights
Comstock monetizes Pinnacle at a strong valuation while deleveraging its midstream arm.
Comstock raised $600 million by selling a 27% non‑controlling stake in Pinnacle Gas Services at a $2.2 billion enterprise value. This crystallizes value in its Western Haynesville midstream system while keeping a 73% controlling interest and operational control.
Proceeds were applied to redeem $445 million of preferred equity plus accrued dividends and eliminate all Pinnacle debt, which is expected to cut fixed charges by about $40 million annually. That simplifies the capital structure and reduces financial risk at the midstream level.
The structure also includes potential future ownership shifts: if Sixth Street reaches specified return hurdles, its stake could decline from 27% to 19.5%, lifting Comstock’s interest to 80.5%, above the 70% it previously would have held. Future disclosures may clarify how quickly production growth in the Western Haynesville supports this growth plan.
8-K Event Classification
Key Figures
Key Terms
enterprise value financial
preferred equity securities financial
fixed charges financial
management services agreement financial
Western Haynesville financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
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Item 8.01 Other Events
On June 15, 2026, Comstock Resources, Inc. (the "Company" or "Comstock") announced 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. Sixth Street invested $600 million and acquired a 27% non-controlling common equity interest in Pinnacle with Comstock retaining a 73% controlling common equity interest. Comstock will continue to manage, operate and control Pinnacle under a management services agreement.
Comstock used the proceeds from the investment to fully extinguish and retire the Pinnacle preferred equity securities for $445 million plus accrued dividends and all outstanding indebtedness at Pinnacle, transaction costs and for working capital.
A copy of the Company's press release is filed as Exhibit 99.1 to this Form 8-K and is incorporated by reference.
Item 9.01 Financial Statements and Exhibits
Exhibit No. |
Description |
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99.1 |
Comstock Announces $600 Million Strategic Investment By Sixth Street in Pinnacle Gas Services |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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COMSTOCK RESOURCES, INC. |
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June 16, 2026 |
By: |
/s/ ROLAND O. BURNS |
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Roland O. Burns |
Exhibit 99.1
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5300 Town and Country Blvd., Suite 500 |
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Contact: Ron Mills |
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VP of Finance and Investor Relations |
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Web Site: www.comstockresources.com |
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NEWS RELEASE |
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For Immediate Release
COMSTOCK ANNOUNCES $600 MILLION STRATEGIC INVESTMENT BY SIXTH STREET IN PINNACLE GAS SERVICES
FRISCO, TEXAS, June 15, 2026 – 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
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