Comstock Resources (NYSE:CRK) shares rose 5% on Tuesday after the company announced a letter of intent with the State Oil Company of the Azerbaijan Republic (SOCAR) covering a proposed $1.65 billion asset transaction, alongside a separate drilling venture involving approximately $450 million of expected costs with a partnership owned by the family of majority stockholder Jerry Jones.
Under the proposed SOCAR transaction, SOCAR or one of its subsidiaries would acquire interests in Comstock’s Haynesville assets and Pinnacle Gas Services LLC for $1.65 billion in cash.
The parties are targeting execution of a definitive purchase and sale agreement by October 31, 2026, with closing expected by the end of the year. The transaction remains subject to definitive documentation and applicable conditions.
SOCAR to acquire interests in Haynesville assets
Under the letter of intent, SOCAR would acquire a 20% non-operated working interest in Comstock’s Legacy Haynesville upstream assets.
SOCAR would also receive a 15% interest in the company’s Western Haynesville upstream assets. That interest would decline to 7.5% after five years once SOCAR has achieved a 15% return on its investment.
The proposed transaction also includes 15% of Comstock’s 73% ownership interest in Pinnacle Gas Services LLC.
Comstock would retain operational control of its upstream assets and continue to manage Pinnacle Gas Services following completion of the transaction.
Comstock plans to reduce net debt
Comstock said it intends to use proceeds from the proposed $1.65 billion transaction to reduce its total indebtedness.
Based on debt levels as of June 30, 2026, the company expects net debt to decline from $3.1 billion to approximately $1.5 billion following the transaction.
The expected reduction represents the company’s current plan for the proceeds and remains dependent on completion of the proposed SOCAR transaction.
Jones family partnership to fund Haynesville drilling
Separately, Comstock entered into a Haynesville shale drilling venture with a partnership owned by the Jones family, effective September 1, 2026.
Over the following 12 months, the partnership will fund the drilling and completion costs for 85% of 18 Western Haynesville wells and 80% of nine Legacy Haynesville wells.
The drilling programme is expected to cost approximately $450 million.
After the partnership achieves a 15% return on its investment, 50% of its interest in the wells will revert to Comstock.
The SOCAR transaction has an effective date of July 1, 2026, and remains subject to customary conditions, including required government and third-party approvals.
Comstock Resources stock price
