Comstock Resources said on Tuesday it plans to sell stakes in its Haynesville shale assets and related midstream business to Azerbaijan’s SOCAR for $1.65 billion in cash, as the U.S. natural gas producer aims to reduce its debt.
The deal would give SOCAR stakes in Comstock’s Legacy and Western Haynesville assets, as well as the Pinnacle Gas Services midstream business.
The companies expect to close the transaction by year-end.
Comstock said the deal will help reduce its pro forma net debt to about $1.5 billion from $3.1 billion as of June 30.
(Reporting by Varun Sahay in Bengaluru; Editing by Leroy Leo)