Comstock Resources Inc. sold a 27% non-controlling equity stake in its midstream subsidiary, Pinnacle Gas Services LLC, to Sixth Street for $600 million [1, 2].
The transaction allows the Texas-based oil and gas company to generate immediate liquidity to pay down debt while maintaining a controlling interest in the subsidiary [3].
Comstock Resources is controlled by Jerry Jones, the owner of the Dallas Cowboys [1, 4]. Under the terms of the agreement, Comstock retains a 73% controlling interest in Pinnacle Gas Services [3].
Reports on the overall valuation of Pinnacle Gas Services vary between sources. BizJournals reported the subsidiary is valued at $2.2 billion [3], while Yahoo Finance estimated the valuation at approximately $1.6 billion [1].
Pinnacle Gas Services manages critical infrastructure for Comstock's Western Haynesville production area. The subsidiary operates two gas-treating plants, and 246 miles of high-pressure pipeline [2, 3].
The deal deepens the financial ties between Sixth Street and the Jones family [4]. By farming out a minority interest, Comstock secures a significant cash infusion without relinquishing operational control of its midstream assets [2, 3].
“Comstock Resources sold a 27% non-controlling equity stake in its midstream subsidiary for $600 million.”
This transaction reflects a broader trend in the energy sector where producers monetize midstream assets to optimize balance sheets. By selling a minority stake in Pinnacle, Comstock leverages the value of its infrastructure to reduce leverage without losing the strategic advantage of controlling the transport and treatment of its own gas production in the Haynesville region.
