Strategic Investment

Comstock Resources (CRK) announced a $600 million strategic investment by Sixth Street in its midstream subsidiary Pinnacle Gas Services (Pinnacle). The transaction values Pinnacle at an enterprise value of $2.2 billion and involves Sixth Street acquiring a 27 % non‑controlling common equity interest. CRK retains a 73 % controlling stake and will continue to manage and operate Pinnacle under a management services agreement. Upon meeting specified return hurdles, Sixth Street’s ownership will be reduced from 27 % to 19.5 %, raising CRK’s ownership from 73 % to 80.5 %. Proceeds from the investment were used to extinguish Pinnacle’s preferred equity securities and outstanding indebtedness, reducing Pinnacle’s fixed charges by roughly $40 million per year and strengthening CRK’s balance sheet.