Comstock's $1.65 Billion SOCAR Proposal Would Cut Net Debt to $1.5 Billion

Key Facts

Comstock Resources said on September 1, 2026, that it signed a letter of intent to sell interests in natural-gas assets to SOCAR for $1.65 billion in cash, while separately entering an expected $450 million drilling venture with a partnership owned by the family of Jerry Jones, the company's majority shareholder.

Comstock said using the SOCAR proceeds to repay debt would reduce its net debt, on a pro-forma basis using the June 30, 2026 balance, from $3.1 billion to $1.5 billion. The projected reduction remains conditional on a definitive sale agreement and completion of the transaction.

Under the proposal, SOCAR would acquire 20% of Comstock's interest in Legacy Haynesville, 15% of its interest in Western Haynesville and 15% of Comstock's 73% interest in Pinnacle Gas Services. SOCAR's Western Haynesville interest would fall to 7.5% after 5 years and after it earns a 15% return on that investment.

The parties are targeting a definitive purchase and sale agreement by October 31, 2026, and closing by December 31, 2026, subject to government and third-party approvals and customary conditions. They set July 1, 2026, as the transaction's effective date.

The proposed transaction would allow Comstock to convert minority economic interests into cash for debt repayment while retaining operatorship of its upstream assets and management of Pinnacle. The partnership also gives SOCAR opportunities to participate in future projects and is intended to expand Comstock's access to international gas customers.

In a separate venture effective September 1, 2026, the Jones family partnership will fund 85% of the drilling and completion costs for 18 Western Haynesville wells and 80% of the costs for 9 Legacy Haynesville wells over 12 months. The 27 wells are expected to cost about $450 million, and 50% of the well interests will revert to Comstock after a 15% return is achieved.

The Jones structure shifts much of the near-term drilling outlay to the partner but gives it an economic interest until the 15% return hurdle is reached. The SOCAR proposal would reduce leverage in exchange for minority interests in upstream assets and Pinnacle, making closing and the definitive terms critical.

CRK closed at $14.78 on September 11, 2026, after trading between $14.65 and $15.30. The next milestones are the targeted definitive agreement on October 31, 2026, and closing on December 31, 2026; until then, the $1.5 billion net-debt figure remains pro forma rather than realized.