Comstock Resources Strikes $1.65 Billion SOCAR Partnership and $450 Million Jerry Jones Drilling Venture, Cutting Net Debt in Half

Comstock Resources, Inc. (NYSE, NYSE Texas: CRK), an independent natural gas producer focused on the Haynesville and Bossier shales, announced on September 1, 2026 a letter of intent under which the State Oil Company of the Azerbaijan Republic (SOCAR) would acquire non-operated working interests in Comstock’s Legacy and Western Haynesville assets, along with a stake in its midstream subsidiary, for $1.65 billion in cash. Separately, Comstock entered a $450 million Haynesville drilling joint venture with Jerry Jones, the company’s majority stockholder. Shares rose on the news, with the combined transactions positioned to cut Comstock’s pro forma net debt from $3.1 billion to $1.5 billion.

SOCAR Buys In Without Taking the Wheel

The SOCAR transaction carves out specific, non-operated interests rather than a controlling stake. SOCAR would acquire a 20% working interest in Comstock’s Legacy Haynesville upstream assets, a 15% working interest in its Western Haynesville upstream assets (stepping down to 7.5% after five years once SOCAR achieves a 15% return on that investment), and 15% of Comstock’s 73% ownership stake in Pinnacle Gas Services, the midstream operation serving the Western Haynesville. Comstock retains operatorship of every asset involved, meaning day-to-day development decisions stay with Comstock’s own team. In exchange, SOCAR gains participation rights in future Haynesville opportunities at the same percentages and will help Comstock market its natural gas to international customers, tying the deal directly into the broader U.S. LNG export growth story. The letter of intent targets a definitive purchase and sale agreement by October 31, 2026, with closing by year-end, subject to regulatory and third-party approvals.

Jerry Jones Funds the Drilling While Comstock Keeps the Upside

The $450 million drilling joint venture with Jerry Jones, Comstock’s majority stockholder, runs on a separate track from the SOCAR transaction and addresses a different problem: funding an aggressive near-term drilling program without issuing new equity or taking on additional corporate debt. Beginning September 1, 2026, the venture funds 85% to 80% of drilling and completion costs across 27 wells, 18 in the Western Haynesville and nine in the Legacy Haynesville, over the next twelve months. A 50% working interest in those wells reverts to Comstock once a 15% return on investment is achieved, the same threshold used in the SOCAR transaction’s step-down provision, meaning Jones effectively fronts a large share of near-term capital costs while Comstock retains long-term ownership of the resulting production. That structure lets Comstock accelerate delineation of its Western Haynesville acreage, one of the largest undeveloped natural gas resource bases in the United States, without straining the balance sheet the SOCAR proceeds are simultaneously working to repair.

The Balance Sheet Repair Positions Comstock for Gulf Coast Demand Growth

Cutting net debt from $3.1 billion to $1.5 billion, a reduction of more than half, materially changes Comstock’s financial flexibility heading into a period of surging Gulf Coast natural gas demand. The company holds 545,000 net acres in the Western Haynesville, and management has explicitly tied the play’s development to growing LNG export demand, power generation needs, and data center load along the Gulf Coast, including the Texas Power Generation Hub in Anderson County. A materially delevered balance sheet reduces refinancing risk and interest expense while giving Comstock more room to fund continued Western Haynesville delineation using its own capital going forward, rather than relying solely on external financing. Taken together, the SOCAR and Jones transactions let Comstock de-risk its balance sheet and accelerate drilling simultaneously, using two different counterparties to solve two distinct capital needs at once.

Strategic Investment Summary

• SOCAR Transaction: Comstock Resources (NYSE, NYSE Texas: CRK) signed a letter of intent on September 1, 2026 for SOCAR to acquire non-operated interests in its Legacy Haynesville (20%), Western Haynesville (15%, stepping to 7.5%), and Pinnacle Gas Services midstream stake (15% of Comstock’s 73%) for $1.65 billion in cash.
• Debt Reduction: Pro forma for the SOCAR transaction, Comstock’s net debt falls from $3.1 billion to $1.5 billion as of June 30, 2026, a reduction of more than half that materially strengthens the balance sheet.
• Jerry Jones Drilling JV: A separate $450 million joint venture with majority stockholder Jerry Jones funds 80-85% of drilling and completion costs on 27 wells (18 Western Haynesville, 9 Legacy Haynesville) over 12 months beginning September 1, 2026, with 50% working interest reverting to Comstock once a 15% return on investment is achieved.
• Operatorship Retained: Comstock remains operator of all upstream and midstream assets involved in both transactions, preserving full operational control over development pace and strategy despite selling down working interests.
• International Gas Marketing: SOCAR will help market Comstock’s natural gas to international customers and gains participation rights in future Haynesville development at matching percentages, tying the deal into growing U.S. LNG export demand.
• Deal Timeline: The SOCAR letter of intent targets a definitive purchase and sale agreement by October 31, 2026, with closing by year-end, subject to regulatory approval and other customary closing conditions.

Find out more about the latest corporate developments and financial reports at the Comstock Resources investor portal.