Comstock Joins with SOCAR

Comstock Resources and SOCAR signed a framework agreement for a $1.65 billion partnership in the Haynesville Shale. The deal aims to finalize a purchase and sale agreement by October 2026, with SOCAR investing in and marketing Comstock's natural gas for international LNG sales.

Comstock Resources (CRK) and Azerbaijan's SOCAR have signed a formal agreement for SOCAR's $1.65B investment in Comstock's Haynesville Shale assets, finalizing earlier terms. (CRK:NYSE)

Comstock Resources (CRK) and SOCAR formalized a $1.65B deal for Haynesville Shale assets. SOCAR will invest and market natural gas for international LNG sales. The definitive agreement is expected by October 31, 2026, with the transaction closing by year-end 2026. The partnership aligns with broader U.S.-Azerbaijan economic relations.

Comstock Resources (CRK) shares fell 5.2% after Jefferies initiated coverage with a Hold rating and a $14 price target, citing sensitivity to natural gas prices and high debt. The stock later recovered slightly to $13.15, down 4.8%. CRK is down 44.2% YTD and 52% below its 52-week high.

Jefferies downgraded Gulfport Energy (GPOR) to Hold, cutting its price target to $180 from $239, citing risks from near-term natural gas price declines due to a potentially warm winter and increased leverage. The firm acknowledges Gulfport's strong free cash flow and inventory expansion but expresses concerns about balance sheet discipline. Comstock Resources (CRK) was initiated with a Hold rating and $14 target, noted for its sensitivity to front-month natgas prices.

Comstock Resources (CRK) signed a nonbinding $1.65B letter of intent with SOCAR for 20% of Legacy Haynesville and 15% of Western Haynesville interests. A separate $450M drilling venture with a Jerry Jones family partnership covers 27 wells. The SOCAR deal, if finalized, could reduce CRK's net debt to $1.5B by June 2026, improving financial flexibility. However, the transaction is subject to negotiations and approvals.