Joint VentureJul 30, 2026, 04:38 PM
Comstock's PGS Redeems Cactus Interest, Issues $600M Units; Q2 Net Income Down
AI Summary
Comstock Resources' joint venture, Pinnacle Gas Services (PGS), completed a significant transaction on June 15, 2026, redeeming Cactus' interest for $445 million and issuing $600 million in Class A-2 Units to Starville Evergreen Holdings. This strategic move occurred alongside a challenging financial quarter for Comstock, with net income available to the company plummeting to $8.77 million from $124.84 million year-over-year, and basic EPS falling to $0.03 from $0.45. Total natural gas and oil sales also decreased, contributing to a decline in overall revenues.
Key Highlights
- Pinnacle Gas Services (PGS) redeemed Cactus' interest for $445 million on June 15, 2026.
- PGS issued 600,000 Class A-2 Units for $600 million to Starville Evergreen Holdings, LLC.
- Net income available to Comstock was $8.77 million for Q2 2026, down from $124.84 million YoY.
- Basic EPS was $0.03 for Q2 2026, a decrease from $0.45 in Q2 2025.
- Total natural gas and oil sales decreased to $288.22 million in Q2 2026 from $339.97 million YoY.
- Total revenues and other operating income fell to $353.28 million in Q2 2026 from $470.26 million YoY.
- Long-term debt increased to $3.10 billion as of June 30, 2026, from $2.81 billion at year-end 2025.
- Cash and cash equivalents rose to $45.01 million as of June 30, 2026, from $23.93 million.
Price Impact
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