Permian Basin royalty firm EagleRock raises $320mn in IPO

EagleRock Land, a land management royalty company that controls surface acreage in the US’ Permian Basin, has raised $320.1mn in its initial public offering (IPO) this week. The company sold 17.3mn shares at $18.50 per share, with this coming in at the mid-point of its marketed range of $17-20 per share.

This comes after Reuters reported last week that EagleRock was seeking to raise up to $346mn as it targeted a valuation of up to $2.6bn in the IPO.

EagleRock owns or controls roughly 236,000 acres (955 square km) across both the Delaware and Midland sub-basins within the Permian. The company generates revenue from resource sales and the royalties paid by other firms that use its land, with the Houston Chronicle noting that these firms include Chevron, ConocoPhillips and Devon Energy. However, EagleRock’s CEO, Greg Pipkin Jr., told the Houston Chronicle that royalties the company receives from traditional producers are “just part of the story.”

EagleRock also has an interest in up to around 70,000 acres (283 square km) pursuant to an acreage dedication related to its Midland Basin water infrastructure assets. And it is aiming to ease water supply bottlenecks for the industry in the basin, which requires water for hydraulic fracturing. This includes the handling of wastewater, with roughly three barrels of wastewater flowing up alongside each barrel of produced oil according to the Houston Chronicle.

EagleRock has said in filings with the US Securities and Exchange Commission (SEC) that it provides above-ground recycling services for oilfield wastewater, as well as space underground to dispose of wastewater when recycling is not economical. The company has also said it hosts one of the largest produced water handling and disposal systems in the Permian Basin under a long-term agreement with DEF Operating, an affiliate of Double Eagle Energy Holdings IV.

Indeed, when it first reported in mid-April that EagleRock was exploring a possible IPO, Reuters described Permian-focused LandBridge and its water infrastructure affiliate WaterBridge as “logical public comparisons” for EagleRock. It noted that at the time, LandBridge shares had risen almost 300% since its June 2024 IPO, while WaterBridge was up 26% since listing in September.

According to EagleRock’s filings, it is also aiming to add revenue from royalties from other industries including data centres, renewable energy farms, carbon capture, cryptocurrency mining and transmission lines.

“We see the Permian kind of shifting from this oil and gas, traditional oil and gas, hub into kind of a full scale energy ecosystem,” Pipkin told the Houston Chronicle.

EagleRock’s IPO comes as West Texas Intermediate (WTI) prices are hovering at over $100 per barrel, as of May 14. While prices remain volatile and vulnerable to fluctuation, this has boosted the appeal of oil and gas assets. Indeed, EagleRock is also not the only royalty firm to be pursuing an IPO, with natural gas mineral and royalty player WhiteHawk Income also filing for an IPO this week.