Comstock sells 27% stake in Pinnacle Gas Services to Sixth Street

Shree Mishra

Tue, June 16, 2026 astatine 5:33 AM CDT 3 min read

Comstock Resources has divested a 27% non-controlling communal equity involvement successful its midstream subsidiary Pinnacle Gas Services to funds managed by Sixth Street for $600m.

The transaction values Pinnacle Gas Services, presently a Delaware constricted liability company, astatine an endeavor worth of $2.2bn.

Pinnacle Gas Services owns and runs the Pinnacle gathering and treating system, providing infrastructure for Comstock's Western Haynesville earthy state improvement successful East Texas.

Following the sale, Comstock volition clasp a 73% controlling equity involvement valued astatine astir $1.6bn. The institution volition proceed to negociate and run Pinnacle nether a absorption services agreement.

The concern proceeds were utilized by Comstock to destruct each preferred equity securities astatine Pinnacle for $445m positive accrued dividends. They were besides utilized to wage disconnected outstanding indebtedness, screen transaction costs and supply further moving capital.

The transaction volition alteration Pinnacle Gas Services' fixed charges by astir $40m per twelvemonth owed to the extinguishment of indebtedness and preferred equity.

Comstock CEO M. Jay Allison said: "This transaction is different validation of the aboriginal imaginable of Comstock's Western Haynesville acreage, which is good positioned to work the increasing request for earthy state successful our region.

"The Western Haynesville represents 1 of the largest undeveloped earthy state resources with entree to the increasing request on the Gulf Coast and volition besides service the precocious announced Texas Power Generation Hub successful Anderson County, Texas.

"This transaction with Sixth Street represents an important milestone for Comstock and a beardown validation of the worth we person created successful the Western Haynesville."

Comstock is an autarkic earthy state shaper progressive successful the Haynesville Shale, with operations centred successful northbound Louisiana and eastbound Texas. The institution holds an acreage of 540,000 nett acres successful the Western Haynesville.

If Sixth Street meets specified instrumentality thresholds, its involvement successful Pinnacle Gas Services volition alteration from 27% to 19.5%, portion Comstock's involvement would emergence from 73% to 80.5%. This compares to the 70% equity involvement that Comstock would person held if the preferred units had not been redeemed.

Sixth Street spouse and co-head of vigor and co-head of planetary infrastructure Zack Winegrad said: "The transaction highlights Sixth Street's absorption connected providing large-scale, flexible superior solutions to enactment the improvement of captious vigor infrastructure needed to conscionable the accelerated maturation successful vigor request from information centres, hyper-scalers, planetary LNG [liquefied earthy gas], and the secular electrification trends nether mode successful the system much broadly.