SOCAR seals $1.65B cash deal for stakes in Comstock's gas assets
What's the deal? Azerbaijan's state oil company SOCARDealroom has a profile for this one. Try Dealroom → has signed a definitive agreement to buy non-operated working interests in Comstock Resources' US natural gas assets for $1.65 billion in cash. The November 4 deal covers 20% of Comstock's Legacy Haynesville upstream assets, 15% of its Western Haynesville assets, and 15% of its 73% stake in midstream operator Pinnacle Gas Services.
Why now? The agreement turns a September letter of intent into a committed sale, with an effective date of July 1, 2026. Closing is expected by year-end, subject to customary conditions and required governmental approvals.
What's the endgame? Comstock plans to use the proceeds to retire debt and shore up a stretched balance sheet. The company said the $1.65 billion divestiture "will substantially enhance Comstock's balance sheet," and net debt could fall from about $3.1 billion to roughly $1.5 billion.
The sale also unlocks longer runway. Comstock's bank credit facility maturity was extended to November 15, 2028, and would extend further to November 15, 2031 once the deal closes and debt is repaid.
By the numbers: Comstock's third-quarter net income fell to $22.3 million, or $0.08 per diluted share, from $0.40 a year earlier. Production rose 9% year over year to 122.4 billion cubic feet equivalent, while exploration and development spending jumped to $382.9 million from $267.1 million, lifting debt amid heavy drilling.
What could go wrong? Comstock is ceding minority stakes in producing Haynesville assets and part of its midstream business, along with future cash flow, though it keeps operatorship. SOCAR's interest in the Western Haynesville assets will drop to 7.5% after five years, once it achieves a 15% return on investment there.
The signal: The deal marks a notable move by a state-owned energy firm into US shale, giving SOCAR exposure to Haynesville gas and a foothold in future Comstock projects. For Comstock, the trade-off is clear: lower financing pressure now against assets and cash flow surrendered later.
Read more: trend.az
Image credit: Nicholas_T
