Comstock Resources, Inc. (NYSE:CRK) signed a nonbinding letter of intent under which SOCAR would pay $1.65 billion in cash, subject to customary adjustments. SOCAR would acquire non-operated working interests representing 20% of the Legacy Haynesville and 15% of the Western Haynesville upstream interests held by Comstock Resources, Inc. (NYSE:CRK). SOCAR would also acquire 15% of the 73% ownership interest held by Comstock Resources, Inc. (NYSE:CRK) in Pinnacle Gas Services.
The letter of intent requires good-faith negotiations but does not obligate completion. The parties are targeting a definitive agreement by October 31, 2026, and closing by year-end, subject to negotiations, approvals, and customary conditions.
Separately, a Jerry Jones family partnership will fund 85% of the drilling and completion costs for 18 Western Haynesville wells and 80% for nine Legacy Haynesville wells. The total 27-well program is expected to cost approximately $450 million over 12 months. After a 15% return on investment, 50% of the interest covered by the venture will revert to Comstock Resources, Inc. (NYSE:CRK).
If the SOCAR transaction closes, Comstock Resources, Inc. (NYSE:CRK) estimates that the proceeds would reduce company-defined non-GAAP net debt from $3.1 billion to $1.5 billion as of June 30, 2026. Net debt is calculated as total debt less cash and cash equivalents. The approximately $1.6 billion reduction would nearly halve the measure and could improve financial flexibility.
The drilling venture allows development to continue without equivalent near-term cash funding. Following completion of the SOCAR transaction, Comstock Resources, Inc. (NYSE:CRK) would retain operatorship of the upstream ****** ets and control of Pinnacle Gas Services. Drilling should provide volumes to Pinnacle and help delineate the 545,000 net acres in the Western Haynesville.
#SOCAR
The letter of intent requires good-faith negotiations but does not obligate completion. The parties are targeting a definitive agreement by October 31, 2026, and closing by year-end, subject to negotiations, approvals, and customary conditions.
Separately, a Jerry Jones family partnership will fund 85% of the drilling and completion costs for 18 Western Haynesville wells and 80% for nine Legacy Haynesville wells. The total 27-well program is expected to cost approximately $450 million over 12 months. After a 15% return on investment, 50% of the interest covered by the venture will revert to Comstock Resources, Inc. (NYSE:CRK).
If the SOCAR transaction closes, Comstock Resources, Inc. (NYSE:CRK) estimates that the proceeds would reduce company-defined non-GAAP net debt from $3.1 billion to $1.5 billion as of June 30, 2026. Net debt is calculated as total debt less cash and cash equivalents. The approximately $1.6 billion reduction would nearly halve the measure and could improve financial flexibility.
The drilling venture allows development to continue without equivalent near-term cash funding. Following completion of the SOCAR transaction, Comstock Resources, Inc. (NYSE:CRK) would retain operatorship of the upstream ****** ets and control of Pinnacle Gas Services. Drilling should provide volumes to Pinnacle and help delineate the 545,000 net acres in the Western Haynesville.
#SOCAR
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