14:55 - 4.09.2026

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September 4, Fineko/abc.az. A partnership with the State Oil Company of Azerbaijan (SOCAR) opens up new opportunities for U.S.-based Comstock Resources Inc. in the liquefied natural gas (LNG) segment, expanding its trading opportunities and product distribution channels.

According to ABC.AZ, this was stated in a report by international rating agency S&P Global Ratings.

The transaction, announced on September 1, 2026, includes a 20% non-operated working interest in Comstock’s Legacy Haynesville upstream assets, a 15% non-operated working interest in its Western Haynesville upstream assets, and 15% of its 73% ownership interest in Pinnacle Gas Services LLC. The aggregate purchase price is $1.65 billion in cash, subject to customary purchase price adjustments.

SOCAR’s 15% interest in the Western Haynesville assets will be reduced to 7.5% after five years and once SOCAR achieves a 15% return on investment in those assets.

S&P Global Ratings said the transaction would help Comstock offset its year-to-date free cash flow deficit and improve its near-term credit metrics.

The binding letter of intent commits the parties to negotiate a definitive agreement, with signing targeted for October 31, 2026, and closing expected by year-end. The transaction is subject to customary closing conditions and has an effective date of July 1, 2026.

SOCAR will have the opportunity to participate in opportunities generated by Comstock in the Legacy and Western Haynesville areas at the same percentages as those it is acquiring. SOCAR will also provide Comstock with opportunities to market its natural gas to international customers.

Comstock will retain operatorship of all assets involved in the transaction and majority ownership of its Pinnacle midstream assets, with a 62% stake on a pro forma basis.

S&P expects Comstock to use part of the net proceeds to reduce debt under its credit facility, potentially repay some or all of its 2029 notes, which are callable in March 2027, and fund general corporate purposes, including development of its 545,000 net acres in the Western Haynesville.

S&P Global Ratings affirmed Comstock’s issuer credit rating at “B” with a stable outlook.