Comstock Signs $1.65B Letter of Intent with SOCAR and a $450M Drilling Venture
Comstock Resources (CRK) has signed a nonbinding letter of intent with the State Oil Company of Azerbaijan Republic (SOCAR), under which SOCAR would pay $1.65 billion in cash for partial interests in Comstock's upstream assets and its stake in Pinnacle Gas Services. The deal includes 20% interest in Legacy Haynesville, 15% in Western Haynesville, and a portion of the company’s ownership in Pinnacle Gas Services. In addition to this transaction, a partnership with Jerry Jones' family will fund most drilling costs for a $450 million program across 27 wells. Comstock expects that after fulfilling return thresholds, it could regain up to half of these interests over time. The SOCAR deal is projected to reduce the company’s net debt by nearly half if completed. The transaction remains conditional and subject to negotiations and approvals before a definitive agreement can be reached by October 31, 2026, with closing expected by year-end.
Tickers: $CRK
Topics: deleveraging energy oil & gas partnership