EagleRock Land (EROK) Registration filing summary

Company overview and business model

• Owns or controls ~236,000 acres in the Permian Basin, focusing on land management for energy and infrastructure development.

• Generates revenue from surface use agreements, water and caliche sales, and royalties from produced water handling and recycling.

• Business model is asset-light, with customers and partners bearing most operating and capital costs.

• Strategic partnerships with DEF Operating and Hydrosource underpin long-term royalty streams and infrastructure utilization.

• Diversifies revenue through organic growth, accretive acquisitions, and expansion into emerging industries like power and data centers.

Financial performance and metrics

• Pro forma, as adjusted 2025 revenue: $141.4 million; net income: $2.4 million; adjusted EBITDA: $118.6 million; free cash flow: $118.6 million.

• 2025 predecessor net loss: $(73.1) million; adjusted EBITDA: $35.5 million; free cash flow: $30.3 million.

• Q1 2026 pro forma, as adjusted revenue estimated at $29.6–$36.1 million; net income $13.3–$16.2 million; adjusted EBITDA $25.7–$31.5 million.

• Capital expenditures are minimal, supporting high free cash flow margins (83.8% in 2025 pro forma, as adjusted).

• Revenue is diversified across water sales, surface use, royalties, and resource sales, with top ten customers representing 74.5% of 2025 pro forma revenue.

Use of proceeds and capital allocation

• IPO expected to raise $288.2 million (or $333.1 million if underwriters' option exercised), net of fees and expenses.

• All net proceeds will be contributed to OpCo to repay $270 million of predecessor credit facility and for general corporate purposes.

• Post-offering, company intends to maintain a prudent balance sheet, prioritize dividends and opportunistic share repurchases, and pursue selective acquisitions.