InvestmentJun 16, 2026, 11:01 AM
Comstock Sells 27% Pinnacle Stake to Sixth Street for $600M
AI Summary
Comstock Resources, Inc. announced the sale of a 27% non-controlling equity interest in its midstream subsidiary, Pinnacle Gas Services LLC, to funds managed by Sixth Street for $600 million. This investment values Pinnacle at a $2.2 billion enterprise value, with Comstock retaining a 73% controlling interest. The proceeds were used to fully extinguish Pinnacle's preferred equity and all outstanding indebtedness, which is expected to reduce Pinnacle's fixed charges by approximately $40 million annually. Comstock will continue to manage and operate Pinnacle, with its ownership potentially increasing to 80.5% under certain conditions.
Key Highlights
- Comstock sold a 27% non-controlling equity interest in its midstream subsidiary, Pinnacle Gas Services LLC.
- Sixth Street invested $600 million in Pinnacle Gas Services.
- The transaction values Pinnacle at a $2.2 billion enterprise value.
- Comstock retains a 73% controlling common equity interest in Pinnacle.
- Proceeds were used to fully extinguish $445 million in Pinnacle preferred equity plus accrued dividends and all outstanding debt.
- Pinnacle's fixed charges are expected to reduce by approximately $40 million per year.
- Comstock's ownership in Pinnacle can increase to 80.5% from 73% upon Sixth Street achieving certain return hurdles.
Price Impact
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