Comstock Resources Announces $1.65 Billion SOCAR Agreement and $450 Million Drilling Partnership
Shares of Comstock Resources (NYSE:CRK) rose 5% on Tuesday following the announcement of a proposed agreement with State Oil Company of Azerbaijan Republic (SOCAR). The deal involves an estimated $1.65 billion transaction, under which SOCAR would acquire interests in Comstock's Haynesville assets and Pinnacle Gas Services LLC. In addition to this major asset sale, Comstock also announced a drilling venture with the family partnership of majority stockholder Jerry Jones. This initiative is expected to cost around $450 million over 12 months for well development across its Western and Legacy Haynesville fields. The company plans to use proceeds from the SOCAR deal primarily to reduce net debt, which it expects will drop significantly if the transaction closes as planned by year-end.
Tickers: $CRK
Topics: debt reduction energy oil and gas partnership