Comstock Proposes $1.65 Billion SOCAR Pact and $450 Million Haynesville Drilling Venture

Comstock Resources Inc. has outlined a major Haynesville shale expansion strategy through two capital agreements valued at a combined $2.1 billion.

The company signed a letter of intent with SOCAR covering a proposed $1.65 billion asset and infrastructure transaction, while also arranging a $450 million drilling venture with Jerry Jones.

The planned SOCAR partnership would bring the State Oil Company of Azerbaijan Republic into Comstock operations through several substantial ownership positions.

SOCAR, either directly or through a wholly owned subsidiary, would gain exposure to producing assets, future development acreage, and associated gas infrastructure.

Under the proposal, SOCAR would acquire a 20 percent working interest in Comstock's Legacy Haynesville assets.

The interest would be nonoperated, allowing Comstock to retain operational responsibility while introducing a major international energy company as a financial and strategic partner.

SOCAR also would receive a 15 percent working interest in the Western Haynesville assets, again without becoming the operator.

That interest would decline to 7.5 percent after five years once SOCAR has achieved a 15 percent return on investment.

The transaction extends beyond upstream gas properties. SOCAR would acquire a 15 percent interest in the 73 percent ownership position that Comstock currently holds in Pinnacle Gas Services LLC, adding midstream infrastructure exposure to the broader partnership.

Comstock and SOCAR intend to negotiate and execute a definitive purchase and sale agreement by the end of October.

Closing is targeted before the end of the year, although completion remains subject to customary conditions, governmental reviews, and required third party approvals.

The relationship could reach beyond the assets included in the initial proposal.

SOCAR would have the opportunity to participate in future Comstock projects across the Legacy and Western Haynesville at the same ownership percentages contemplated under the proposed transaction.

Comstock also expects SOCAR to create opportunities for marketing its natural gas to international customers.

That connection could become increasingly valuable as Gulf Coast LNG export capacity expands and global buyers seek dependable supplies linked to prolific United States shale basins.

In a separate move, Comstock entered a drilling venture with majority shareholder Jerry Jones.

A partnership owned by the Jones family will finance most drilling and completion expenses for 27 Haynesville wells during the 12 months beginning Sept. 1, 2026.

The Jones partnership will provide 85 percent of drilling and completion costs for 18 wells in the Western Haynesville.

It also will cover 80 percent of those costs for nine Legacy Haynesville wells, bringing expected venture capital to approximately $450 million.

The economic structure gives the Jones partnership an elevated initial participating interest in exchange for carrying most of the development expense.

After the venture reaches a 15 percent return on investment, half of the participating interest in the wells will revert to Comstock.

That arrangement gives Comstock access to substantial development funding while preserving the opportunity to reclaim a larger share of successful wells.

It also reduces the company's immediate capital burden as it accelerates activity across two of its most important Haynesville operating areas.

Comstock said the additional capital will help delineate and develop its 545,000 net acres in the Western Haynesville.

The company considers that acreage a major source of future gas supply for Gulf Coast LNG exports, expanding power generation, and rapidly rising data center demand.

One prospective demand center is the Texas Power Generation Hub in Anderson County, Texas.

Comstock views its Western Haynesville resource as strategically positioned to serve that development alongside other electricity and industrial consumers seeking dependable natural gas volumes.

Together, the proposed SOCAR transaction and Jones drilling venture could provide Comstock with capital, international market access, and faster acreage development.

The agreements remain subject to different investment structures and conditions, but both place the Haynesville at the center of the company's growth strategy.

The SOCAR proposal still requires definitive documentation and regulatory clearance, while drilling results will determine the economics of the Jones venture.

If completed as planned, the transactions would significantly expand the financial resources supporting Comstock's gas production and infrastructure interests.