What a move, Comstock Resource stock rises on $1.65B SOCAR deal

Comstock Resources (NYSE: CRK) rose 5% Tuesday after announcing a letter of intent with the State Oil Company of the Azerbaijan Republic (SOCAR) for a $1.65 billion asset sale and a separate $450 million drilling venture with majority stockholder Jerry Jones.

Under the agreement, SOCAR or its subsidiary would acquire a 20% non-operated working interest in Comstock’s Legacy Haynesville upstream assets, a 15% interest in its Western Haynesville upstream assets that would reduce to 7.5% after five years once SOCAR achieves a 15% return on investment, and 15% of Comstock’s 73% ownership in 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 year end.

Comstock said it intends to use the proceeds to reduce total indebtedness, lowering net debt from $3.1 billion to $1.5 billion as of June 30, 2026. The company will retain operational control of all upstream assets and continue to manage Pinnacle Gas Services.