Comstock Sells $600 Million Stake in Pinnacle Gas Services

A major investment firm just placed a $600 million bet on a Haynesville-focused midstream platform. The deal offers a glimpse into where investors see the next wave of natural gas infrastructure growth.

(P&GJ) — Comstock Resources has sold a minority stake in its midstream subsidiary, Pinnacle Gas Services, to investment firm Sixth Street in a transaction that values the business at approximately $2.2 billion.

Under the agreement, Sixth Street invested $600 million for a 27% non-controlling equity interest in Pinnacle. Comstock retains a 73% ownership stake and will continue to operate and manage the business.

The proceeds were used to retire Pinnacle's preferred equity securities, repay outstanding debt, cover transaction costs and provide working capital.

The deal values Comstock's remaining interest in Pinnacle at roughly $1.6 billion and comes as the company continues developing its acreage position in the Western Haynesville shale.

Comstock CEO Jay Allison said the transaction reinforces the value of the company's midstream assets and its natural gas development strategy in the Western Haynesville.

"This transaction validates the value we have created in the Western Haynesville and strengthens our balance sheet through debt reduction and a simplified capital structure," Allison said. "At the same time, we maintain operational control of the Pinnacle system and retain significant exposure to its future growth."

Pinnacle's infrastructure supports natural gas production across Comstock's approximately 540,000 net acres in the Western Haynesville. The company said the acreage is positioned to serve growing Gulf Coast demand, including liquefied natural gas export facilities and power generation projects.

Comstock said the transaction is expected to reduce Pinnacle's annual fixed charges by approximately $40 million.

Sixth Street said the investment aligns with its strategy of supporting energy infrastructure tied to growing power demand, LNG exports and electrification trends.

The transaction closed with Comstock remaining the controlling owner and operator of Pinnacle Gas Services.