Energy
SOCAR Signs Letter of Intent for $1.65 Billion Stake in US Haynesville Gas Assets
September 2, 2026
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SOCAR has signed a letter of intent with Texas-based Comstock Resources that would give Azerbaijan's state energy company working interests in one of the largest natural gas plays in the United States, in a transaction valued at $1.65 billion before customary purchase price adjustments.
Under the terms disclosed on 1 September and reported by APA-Economics, SOCAR would acquire a 20 percent working interest in Comstock's Legacy Haynesville upstream assets, a 15 percent working interest in its Western Haynesville assets, and 15 percent of Comstock's 73 percent ownership interest in midstream operator Pinnacle Gas Services LLC.
A step-down structure on the newer acreage
The Western Haynesville stake carries an unusual feature. SOCAR's 15 percent working interest in those assets is expected to fall to 7.5 percent once the Azerbaijani company achieves a 15 percent return on its investment there, subject to the relevant terms. The mechanism caps SOCAR's long-run exposure to the play while giving Comstock a route back to a larger share of future value.
Comstock will remain operator of all the upstream assets and will continue to manage and exercise operational control over Pinnacle Gas Services. SOCAR's participation in future development programmes, new leases and acquisitions within an agreed area of mutual interest will be governed by separate agreements inside the final transaction documents.
Timetable and conditions
The parties are targeting agreement and signature of a definitive purchase and sale agreement no later than 31 October 2026, with completion by 31 December 2026, subject to government and third-party approvals. SOCAR said it is planning appropriate measures to finance the transaction; no financing structure has been disclosed.
SOCAR President Rovshan Najaf said the partnership "brings together the extensive experience and broad capabilities of SOCAR and Comstock, creating a solid foundation for further expanding strategic cooperation." Comstock Chairman and Chief Executive M. Jay Allison said the deal would bring in "a reputable international strategic partner" while "materially reducing our debt burden and fully funding the planned development of our Western Haynesville acreage."
What Baku is buying
The Haynesville shale in Louisiana and East Texas sits closer to Gulf Coast liquefaction terminals than any other major US gas basin, which makes its output a natural feedstock for LNG export. The parties said they will cooperate to expand opportunities for Comstock's gas to reach international markets, language that points at the export logic behind the deal.
For SOCAR the transaction fits a pattern of moving beyond Caspian production into international upstream and downstream positions. The company has been expanding into Uzbekistan and holds trading and retail operations across Europe and Turkiye. On the same day, SOCAR also signed a memorandum of understanding with China's CNOOC, according to APA.
The risk side of the ledger
A letter of intent is not a binding purchase agreement, and the deal carries the standard conditions attached to foreign acquisitions of US energy assets, including regulatory clearance. Gas price exposure is the other variable: Haynesville economics depend heavily on Henry Hub pricing and on the pace at which new liquefaction capacity comes online.
For Azerbaijan, the more interesting question is capital allocation. Domestic gas output supports export commitments to Europe, Turkiye and Georgia, and the country has committed to significant renewable and grid investment. A $1.65 billion overseas upstream position is a substantial claim on the same balance sheet.
