Comstock Resources Forms $300 Million Midstream Partnership for Haynesville Build-out
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Comstock Resources has formed a partnership to fund its midstream build-out to support Western Haynesville acreage development.
As part of a deal with Quantum Capital Solutions (QCS), an affiliate of Quantum Capital Group, Comstock will contribute its Pinnacle gathering and treating system — comprised of a 145-mile high pressure pipeline and the Bethel natural gas processing plant — to the partnership in exchange for 100 percent of the capital required (up to $300 million) to fund the future build-out of the Western Haynesville midstream system over the next 5 years.
“The new partnership with QCS is expected to fund the needed expansion for our Western Haynesville midstream development program over the next five years,” said M. Jay Allison, chief executive officer of Comstock.
Comstock will operate the midstream system and direct its activities and said the partnership will reduce capital outlays that would be required in 2024 to support the expected growth in production from the area. In this year’s fourth quarter, Comstock expects its production to come in at 1,450-1,550 MMcfed.
Comstock Resources is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas.
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