Comstock Resources partners with SOCAR for $450 million drilling venture

FRISCO, TX, Sept. 01, 2026 /CourierPR/ -- Comstock Resources, Inc. has reached a significant strategic partnership with the State Oil Company of the Azerbaijan Republic (SOCAR) and launched a $450 million drilling venture with its majority stockholder, Jerry Jones. These moves are expected to reshape the company’s financial and operational landscape in the Haynesville shale region.

Under the terms of the letter of intent, SOCAR or a wholly owned subsidiary of SOCAR will acquire a non-operated working interest in Comstock’s upstream assets. Specifically, SOCAR will acquire a 20% interest in the Legacy Haynesville assets and a 15% interest in the Western Haynesville assets, with this latter interest reducing to 7.5% after five years upon SOCAR achieving a 15% return on investment. Additionally, SOCAR will take a 15% stake in Pinnacle Gas Services LLC, a midstream service provider for the Western Haynesville. The total purchase price is $1.65 billion, subject to customary adjustments.

M. Jay Allison, Comstock’s Chairman and CEO, expressed excitement about the partnership: "This strategic alliance with SOCAR will not only provide validation of our asset base’s value but also introduce a reputable international partner to accelerate value creation for our investors. The transaction also allows us to reduce our debt and fully fund the planned development of our Western Haynesville acreage."

Meanwhile, Comstock has partnered with Jerry Jones to drill 27 wells in the Haynesville shale region. The Jones family partnership will fund 85% of 18 Western Haynesville wells and 80% of nine Legacy Haynesville wells over the next year, estimated to cost approximately $450 million. After achieving a 15% return on investment, 50% of the wells' interest will revert to Comstock.

Rovshan Najaf, President of SOCAR, commented, "This partnership brings together our extensive experience and capabilities, creating a strong foundation for further strategic cooperation."

The transactions are expected to strengthen Comstock’s balance sheet, with the company planning to use the $1.65 billion from the SOCAR deal to reduce its total indebtedness. Pro forma for the transaction, Comstock's net debt would decrease from $3.1 billion to $1.5 billion as of June 30, 2026. Additionally, the transaction will support the continued development and delineation of Comstock’s 545,000 net acres in the Western Haynesville, a significant undeveloped natural gas resource.

Comstock retains operational control over its upstream and midstream assets and will continue to manage, operate, and control Pinnacle Gas Services. The reversionary structure of the transaction is designed to provide balanced long-term value sharing between both parties.

Comstock Resources, Inc., a leading independent natural gas producer with operations in the Haynesville shale region, will benefit from this strategic partnership, enhancing its financial position and operational capabilities. The company's stock is listed on the NYSE and NYSE Texas under the symbol CRK.

The partnership with SOCAR and the drilling venture with Jerry Jones underscore Comstock’s commitment to strategic growth and value creation in the natural gas sector.