Comstock Resources Agrees to Sell Haynesville Assets to SOCAR for $1.65 Billion

HOUSTON (AP) — Comstock Resources Inc. announced Wednesday that it has signed a nonbinding letter of intent to sell its upstream interests in the Haynesville shale formation to Azerbaijan state-owned oil company SOCAR for $1.65 billion. The proposed transaction, disclosed on Sept. 10, 2026, marks a significant shift in strategy for the U.S.-based natural gas producer as it seeks to restructure its balance sheet.

The deal involves the transfer of Comstock's operating assets within the Haynesville shale, a prolific natural gas play located primarily in Louisiana and Texas. Under the terms of the letter of intent, SOCAR would acquire the upstream interests, allowing Comstock to exit direct operations in the region while retaining potential future upside or royalties depending on final contract negotiations.

Company executives stated that the primary objective of the sale is to reduce non-GAAP net debt. By converting illiquid asset holdings into immediate cash proceeds, Comstock aims to strengthen its financial position without relying on equivalent near-term cash funding for continued development. The transaction allows the company to maintain a leaner capital structure while SOCAR assumes the operational responsibilities and capital expenditures required to expand production in the basin.

SOCAR, which has been expanding its international footprint in North American energy markets, views the acquisition as a strategic entry into one of the most active natural gas basins in the United States. The Azerbaijani national oil company has previously expressed interest in securing long-term supply contracts and developing upstream assets to diversify its portfolio beyond the Caspian region.

The agreement remains nonbinding at this stage, meaning both parties must negotiate definitive agreements before the deal can be finalized. Key terms subject to final negotiation include specific asset boundaries, environmental liabilities, and the timeline for closing. Regulatory approvals from U.S. authorities will also be required given the foreign ownership nature of the transaction.

Comstock's stock price reacted positively to the announcement as investors assessed the potential impact on the company's debt load and future cash flow projections. The sale represents a major step in Comstock's broader plan to optimize its asset base, though analysts note that the final structure of the deal could vary significantly from the initial letter of intent.

Questions remain regarding the exact timeline for closing and whether SOCAR will commit to maintaining current production levels or accelerating development plans in the Haynesville. Additionally, it is unclear how much of the $1.65 billion valuation will be paid in cash versus other forms of consideration. Both companies indicated they expect to provide further updates as negotiations progress toward a definitive agreement.