Deal values Pinnacle Gas Services at $2.2bn, reducing fixed charges by $40m annually while Comstock retains control.
Comstock Resources sold a 27% stake in its midstream unit Pinnacle Gas Services to Sixth Street for $600m, valuing the subsidiary at $2.2bn. The transaction eliminates $445m in preferred equity and debt, cutting annual fixed charges by $40m.
Comstock retains a 73% controlling interest, worth approximately $1.6bn, and will continue operating Pinnacle under a management agreement. The deal targets infrastructure supporting Comstock’s Western Haynesville natural gas development in East Texas.
Proceeds were used to extinguish preferred equity, repay debt, and bolster working capital. The move underscores confidence in the region’s gas demand growth along the Gulf Coast.