Comstock Resources has signed a definitive agreement to sell non-operated working interests in its Haynesville shale gas assets and its Pinnacle Gas Services midstream business to SOCAR, the State Oil Company of the Azerbaijan Republic, for US$1.65bn in cash, the company said in its third-quarter results on 4 November 2026.
Why State Oil Company of the Azerbaijan Republic (SOCAR) is buying Non-operated interests in Comstock Resources' Haynesville assets (20% of Legacy Haynesville, 15% of Western Haynesville, 15% of Comstock's stake in Pinnacle Gas Services LLC)
When it announced the letter of intent on 1 September, Comstock said it would use the proceeds to cut debt, reducing pro forma net debt from US$3.1bn to US$1.5bn as of 30 June 2026. Comstock will remain operator of all the upstream assets and continue to manage Pinnacle.
Deal terms and financing
SOCAR is buying non-operated interests in 20% of Comstock's interest in its Legacy Haynesville upstream assets, 15% of its interest in the Western Haynesville upstream assets and 15% of its interest in Pinnacle Gas Services LLC, for an aggregate US$1.65bn subject to customary adjustments. SOCAR's Western Haynesville interest will fall to 7.5% after five years once it has earned a 15% return on those assets. The effective date is 1 July 2026. Comstock also extended its bank credit facility to November 2028, extending further to November 2031 once the SOCAR deal closes and debt is retired.
Regulatory approvals and timing
Closing is expected by the end of 2026, subject to conditions including any required governmental approvals.
