SOCAR and Comstock Resources sign $1.65 billion strategic deal

SOCAR and Comstock Resources have signed a letter of intent for a $1.65 billion strategic partnership. Under the agreement, the State Oil Company of the Azerbaijan Republic (SOCAR) will acquire specific interests in Comstock’s upstream assets, including a 20% interest in the Legacy Haynesville assets and a 15% interest in the Western Haynesville assets. SOCAR will also acquire a 15% stake in Comstock’s 73% interest in Pinnacle Gas Services LLC.

SOCAR’s interest in the Western Haynesville assets is slated to decrease to 7.5% once a 15% return on investment is achieved. The companies aim to execute a definitive purchase and sale agreement by October 31, 2026, with the transaction expected to close by the end of that year, pending regulatory and third-party approvals.

Comstock intends to use the proceeds to reduce its net debt from approximately $3.1 billion to $1.5 billion. The company also announced a separate $450 million drilling venture with Jerry Jones to accelerate the development of its Haynesville assets, which are positioned to serve demand from LNG exports, power generation, and data centers.