EagleRock Land IPO: Oil royalty landowner goes public

Preliminary trading of EagleRock Land shares has begun on the Freedom customer trading system. The company owns land in Texas and New Mexico where oil and gas is produced. EagleRock provides operators with long-term access to these territories instead of extracting the resources themselves, and receives fees and royalties for this. Later on Ma. 14, the company's securities will appear on the New York Stock Exchange under the ticker EROK.

EagleRock Land raised $320.1 million in an IPO. The company offered 17.3 million shares for $18.5 a share - this valuation is roughly in the middle of the previously announced price range ($17-20 a piece).

Goldman Sachs, Barclays, JPMorgan, Piper Sandler and Raymond James were the lead organizers of the deal.

EagleRock plans to use the proceeds from the IPO to, among other things, repay debt, fund operations and acquire land.

EagleRock Land was founded in 2023 and is based in Houston, Texas. According to its website, it owns or controls about 236,000 acres in the central Permian Basin in Texas and New Mexico, and has an additional interest of up to 70,000 acres in the Midland Basin (Texas), areas associated with the company's water infrastructure assets.

The lands generally controlled by EagleRock are the center of the U.S. shale industry in the region, Reuters writes. But instead of producing oil and gas on its own, EagleRock receives fees and royalties, giving companies long-term access to its lands for drilling, water management and infrastructure placement. This strategy allows EagleRock to generate revenue primarily through fees and commissions while keeping its own operating costs relatively low.

The company has contracts authorizing drilling on its property with oil and gas companies such as Chevron, ConocoPhillips, Devon Energy and Diamondback Energy, according to documents EagleRock filed with the U.S. Securities and Exchange Commission (SEC).

For 2025, EagleRock posted a net loss of $73.1 million on revenue of $72.2 million. By comparison, a year earlier, the company recorded a net loss of $1.1 million on revenue of $17.7 million, according to documents filed by EagleRock with the SEC.

Going forward, EagleRock said that in addition to its core oil and gas royalty business, it plans to diversify its revenue sources and is exploring additional land use opportunities, including power generation, data center development and renewable energy projects.

EagleRock's website does not disclose the company's ownership structure, Reuters notes. The company's portfolio combines oil and gas assets of several entrepreneurs, the agency's sources say. One of them, said a Reuters interlocutor, is Greg Mabee, a Texas-based entrepreneur and representative of a family that owns one of the largest ranches in the Permian Basin (he did not respond to the agency's inquiries).

EagleRock executives listed on the website include CEO Greg Pipkin Jr. He was previously in charge of corporate strategy at Infinity Natural Resourses, which went public in January 2025. The position of CFO of EagleRock, according to the data on the company's website, is held by Neil Shah, before he worked in a similar position in Pioneer Natural Resourses (this company in 2024 for $60 billion bought Exxon Mobil), specifies Reuters.

EagleRock's plan to enter the stock exchange came amid a sharp rise in oil prices amid the conflict in the Middle East, Reuters writes. The blockage of shipping through the Strait of Hormuz has made attractive U.S. assets and companies that continue to transport oil and gas unhindered by the war.

EagleRock's offering has become a rare IPO in the US oil and gas industry in recent times, the agency notes. Previously, investors put the environmental agenda at the top of the agenda - and this restrained interest in new offerings of oil assets, and private owners found buyers among industry players who needed additional resources, Reuters writes.

Now, the demand for natural gas to support increasing power generation - especially for artificial intelligence infrastructure - is once again drawing investor attention to the oil and gas industry, the agency points out. Reuters also cites Permian Basin developer Landbridge, whose shares have risen 300% since its June 2024 IPO.

At the same time, Freedom Finance analyst Alem Bektemirov names oil and natural gas exploration and development among the main risks for EagleRock's business. With $294.6 million in debt on EagleRock's balance sheet and $9.042 million in cash, the company's fair valuation is $2.075 billion, or $15.95 per share, the analyst says - almost 16% less than the offering price.

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Freedom clients will be able to get access to EagleRock shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the U.S. exchanges open (from 15:30-16:30 Astana time). To participate, click on ticker EROK.

This article was AI-translated and verified by a human editor