Comstock Resources (NYSE:CRK) has sold a 27% stake in its Pinnacle Gas Services subsidiary to Sixth Street for $600 million, valuing the midstream unit at $2.2 billion.

Key Highlights

  • The deal values Pinnacle Gas Services at $2.2 billion, with Comstock retaining a 73% controlling interest.
  • Proceeds were used to eliminate $445 million in preferred equity and reduce annual fixed charges by $40 million.
  • Sixth Street’s stake could shrink to 19.5% if return thresholds are met, increasing Comstock’s share to 80.5%.
  • Pinnacle operates gathering and treating infrastructure for Comstock’s 540,000-net-acre Western Haynesville position.

The $600 million transaction sets an enterprise value of $2.2 billion for the Delaware-based gathering and treating business.

The deal leaves Comstock with a 73% controlling stake, valued at approximately $1.6 billion.

Proceeds from the sale were allocated to redeem all preferred equity securities at Pinnacle for $445 million, including accrued dividends.

The remaining funds were used to retire outstanding debt, cover transaction costs, and bolster working capital.

The restructuring is expected to reduce Pinnacle’s annual fixed charges by $40 million.

Comstock CEO M.

Jay Allison framed the transaction as validation of the Western Haynesville’s growth potential.

The region’s proximity to Gulf Coast demand centres and the planned Texas Power Generation Hub in Anderson County positions it as a key supply source for LNG exports and domestic power generation.

Sixth Street’s investment reflects broader capital flows into energy infrastructure amid rising demand from data centres, LNG facilities, and electrification trends.

Partner Zack Winegrad noted the deal aligns with the firm’s strategy of deploying flexible capital into critical midstream assets.

The agreement includes a performance-based adjustment.

Without the preferred equity redemption, Comstock’s ownership would have stood at 70%.

The company’s focus on the play has intensified as LNG export capacity expands along the Gulf Coast.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.