$1.65B SOCAR Deal & $450M JV Strengthen CRK's Financials & Growth

Comstock Resources, Inc. CRK has taken a major step toward reshaping its investment profile through two transactions tied to its Haynesville asset base. The natural gas producer announced a proposed $1.65 billion strategic partnership with the State Oil Company of the Azerbaijan Republic (“SOCAR”), along with a $450 million drilling joint venture with Jerry Jones. Together, the agreements offer CRK a path to reduce financial pressure, develop its resource base and boost growth.

SOCAR Deal Brings Cash & Strategic Support

Under the proposed SOCAR transaction, the Azerbaijani energy company plans to acquire minority interests in Comstock’s Legacy Haynesville, Western Haynesville and Pinnacle Gas Services assets for $1.65 billion in cash. Comstock remains operator of its upstream assets and continues to manage and control Pinnacle Gas Services.

CRK’s biggest near-term benefit is its balance-sheet improvement. Comstock plans to use the proceeds to reduce debt, taking pro forma net debt from $3.1 billion to $1.5 billion based on June 30, 2026 levels. Lower leverage gives CRK greater financial flexibility and more room to fund development without relying as heavily on additional borrowing.

SOCAR also brings an investment-grade balance sheet and global liquefied natural gas (“LNG”) marketing capabilities. The partnership gives Comstock opportunities to market natural gas to international customers, expanding the strategic relevance of its Haynesville production.

Western Haynesville Gets More Development Support

The stronger financial position matters because Comstock controls 545,000 net acres in the Western Haynesville, which management describes as one of the largest undeveloped natural gas resources in the United States.

The acreage is positioned to serve Gulf Coast demand tied to LNG exports, power generation and data centers. CRK plans to continue delineating and developing the area while keeping operational control. The deal supports a longer runway for production growth and resource monetization.

The agreement includes a reversion mechanism. SOCAR’s 15% interest in the Western Haynesville falls to 7.5% after five years, once it earns a 15% return. This provision allows Comstock to regain a larger share of the assets once its partner achieves the agreed-upon return.

Jones Venture Eases CRK’s Drilling Burden

The separate drilling joint venture (JV) with Jerry Jones adds another funding source. A Jones family partnership will fund 85% of drilling and completion costs for 18 Western Haynesville wells and 80% for nine Legacy Haynesville wells over the next 12 months. The program is expected to cost about $450 million.

After the partnership earns a 15% return, half of the well interests revert to Comstock. The deal helps CRK advance drilling while limiting its capital burden. New production adds volumes for Pinnacle Gas Services, supporting Comstock’s midstream platform.

What Investors Need to Watch

For CRK investors, the deals improve the balance between growth and financial discipline. Lower debt, external drilling funding and retained operational control strengthen CRK’s business model and reinforce its long-term investment appeal.

The SOCAR transaction remains based on a letter of intent. The parties target a definitive agreement by Oct. 31, 2026 and closing by year-end, subject to negotiations, approvals and customary conditions. Execution remains the key near-term factor to watch.

CRK’s Zacks Rank & Key Picks

Comstock currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the energy sector are Drilling Tools International Corporation DTI, RPC, Inc. RES and Oceaneering International, Inc. OII. DTI currently sports a Zacks Rank #1 (Strong Buy), while RES and OII carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.

Drilling Tools manufactures and rents downhole tools used in oil and natural gas wells, positioning it to participate if greater power requirements translate into additional natural gas drilling activity. Despite softer North American land activity and Middle East disruptions, DTI generated $4.1 million of adjusted free cash flow in the second quarter of 2026, up substantially both sequentially and year over year, while management noted improving activity trends in several markets.

RPC provides completion, production and maintenance services, including pressure pumping, downhole tools, wireline and cementing, giving it exposure to upstream activity that may expand as electricity demand increases the need for dependable energy supplies. RES’ second-quarter revenues increased 1% sequentially to $460.9 million, while adjusted EBITDA rose 23.3% to $66 million, supported by an improved job mix and higher activity across several service lines.

Oceaneering International provides engineered services, products and robotic solutions to the offshore energy market. In the second quarter of 2026, revenues increased 10% to $768 million and adjusted EBITDA rose 11% to $115 million. OII’s Manufactured Products backlog stood at $445 million as of June 30, 2026, with additional orders expected during the second half.

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