EagleRock Land, a real estate management company, reported an increase in annual revenue in documents filed on Thursday for a US stock market debut, positioning itself as a rare listing in the energy sector amid renewed investor interest in the industry.
Based in Houston, the company declared a net loss of $73.1 million for the year ending December 31, compared to a loss of $1.1 million the previous year. Its revenue jumped from $17.7 million to $72.2 million.
The stock market debut comes at a time when oil and gas listings in the United States remain scarce after years of cautious investor sentiment, even as the surge in crude prices due to the conflict in the Middle East and disruptions in the Strait of Hormuz reignite interest in energy assets.
EagleRock generates revenue through royalties and rights on oil and gas activities conducted on its owned or controlled lands, rather than engaging in drilling itself. This allows the company to generate revenue mostly based on rights, with limited operating costs.
The company owns or controls approximately 236,000 acres in the prolific Permian Basin, which extends from west Texas to southeast New Mexico.
The Permian Basin is divided into two main zones: the Midland Basin, primarily located in Texas, and the Delaware Basin, which extends across west Texas and New Mexico.
While the company has not disclosed the amount it aims to raise, Reuters previously reported, citing sources familiar with the matter, that EagleRock is targeting a valuation between $1 and $2 billion.
Goldman Sachs, Barclays, J.P. Morgan, Piper Sandler, and Raymond James are among the underwriters of the offering.
EagleRock intends to list its shares on the New York Stock Exchange under the symbol “EROK”.
