Sixth Street has acquired a 27% stake in Comstock Resources’ midstream subsidiary Pinnacle Gas Services for $600 million, valuing the unit at $2.2 billion.

Key Highlights

  • Sixth Street has taken a 27% equity stake in Pinnacle Gas Services, a Comstock Resources (NYSE: CRK) midstream subsidiary, for $600 million.
  • The deal values Pinnacle at $2.2 billion, with Comstock retaining a 73% controlling interest worth approximately $1.6 billion.
  • Proceeds were used to retire $445 million in preferred equity and all outstanding debt at Pinnacle, reducing annual fixed charges by $40 million.
  • Comstock will maintain operational control of Pinnacle while Sixth Street’s stake could dilute to 19.5% upon hitting return hurdles.
  • The transaction strengthens Comstock’s balance sheet and validates growth potential in the Western Haynesville natural gas basin.

Sixth Street has secured a minority stake in Pinnacle Gas Services, the midstream arm of Comstock Resources (NYSE: CRK), in a $600 million deal that underscores the value of natural gas infrastructure in the Haynesville Shale.

The investment values Pinnacle at $2.2 billion, with Sixth Street acquiring 27% of the unit while Comstock retains a 73% controlling interest.

The transaction is designed to strengthen Comstock’s financial position.

Proceeds from the deal were used to eliminate $445 million in preferred equity securities and all outstanding debt at Pinnacle.

The move is expected to cut the subsidiary’s fixed charges by $40 million annually, improving cash flow stability for the parent company.

Comstock will continue to manage Pinnacle under a long-term services agreement, ensuring operational alignment between its upstream and midstream segments.

The deal also includes provisions that could increase Comstock’s ownership to 80.5% if Sixth Street achieves certain return thresholds, up from the 70% it was previously entitled to.

The Western Haynesville basin, where Pinnacle operates, remains a key growth driver for Comstock.

The company holds 540,000 net acres in the region, positioning it to capitalize on rising natural gas demand along the Gulf Coast.

Sixth Street’s investment reflects confidence in the long-term potential of U.S.

natural gas infrastructure, particularly as data centers, LNG exports, and electrification trends drive consumption.

The firm’s partnership with Comstock highlights its strategy of deploying flexible capital to support critical energy infrastructure.

Comstock CEO M.

Jay Allison described the deal as a validation of the Western Haynesville’s growth prospects, noting the basin’s role in supplying gas to emerging power generation hubs.

Advisors on the transaction included Jefferies for Comstock and Wells Fargo and RBC Capital Markets for Sixth Street.

The deal closed on June 15, 2026, with no material changes to Comstock’s operational structure.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.