SOCAR Invests $1.65 Billion in US Natural Gas Producer Comstock Resources Inc.

Azerbaijan's State Oil Company (SOCAR) is investing $1.65 billion in Comstock Resources Inc., a US natural gas producer, under a letter of intent announced on September 1.

SOCAR will acquire a 20% passive working interest in Comstock's production assets at Legacy Haynesville and a 15% passive working interest in its Western Haynesville production assets, as well as 15% of Comstock's 73% interest in Pinnacle Gas Services LLC.

The transaction is expected to strengthen Comstock's financial position and help offset the company's lack of free cash flow accumulated since the beginning of the year, according to S&P Global Ratings.

SOCAR's working interest in Western Haynesville assets will be reduced to 7.5% over five years after the investment achieves a 15% return.