EL7.AI
StocksMediumUpdated•Originally published 5 September 2026•Updated 5 September 2026•
2 min read

Comstock Signs $1.65B SOCAR LOI, Targets Net-Debt Cut to $1.5B

Key Facts

1The proposed purchase price under the SOCAR letter of intent is $1.65 billion in cash.
2Comstock projects pro forma net debt declining from $3.1 billion to $1.5 billion.
3The drilling program with the Jerry Jones family partnership is expected to cost approximately $450 million over 12 months.
4The parties target a definitive agreement by October 31, 2026, and closing by year-end.

Comstock Resources signed a letter of intent with SOCAR on September 1, 2026, to sell non-operated interests in natural-gas assets for an aggregate cash purchase price of $1.65 billion, subject to customary price adjustments and a definitive purchase and sale agreement.

The proposed transaction covers 20% of Comstock's interest in Legacy Haynesville and 15% of its Western Haynesville interest, with the latter declining to 7.5% after 5 years and after SOCAR earns a 15% return on investment. It also covers 15% of Comstock's 73% interest in Pinnacle Gas Services.

Comstock intends to use the transaction proceeds to reduce total indebtedness. On a pro forma basis, the company said net debt would fall from $3.1 billion to $1.5 billion, based on its financial position at June 30, 2026.

The parties target a definitive agreement by October 31, 2026, and closing by year-end, depending on negotiations and required government and third-party approvals. The proposed transaction has an effective date of July 1, 2026.

Separately, Comstock entered a drilling venture with a partnership owned by the Jerry Jones family beginning September 1, 2026, with approximately $450 million of expected drilling and completion costs over 12 months. The partnership will fund 85% of the costs for 18 Western Haynesville wells and 80% for 9 Legacy Haynesville wells.

After a 15% return on investment is achieved, 50% of the interests in the wells will revert to Comstock. Comstock will remain operator of the upstream assets and will continue to manage, operate and control Pinnacle Gas Services. The $450 million represents drilling-program costs, not additional sale proceeds; any debt reduction depends on completing the SOCAR transaction and applying its proceeds as planned.