EagleRock Land (EROK) Registration filing summary

Company overview and business model

• Operates as a land management company with ~236,000 acres in the Permian Basin, supporting oil, gas, water, and infrastructure needs for energy and emerging industries.

• Revenue streams include water and caliche sales, surface use royalties, produced water handling, and infrastructure easements.

• Business model is capital-light, with customers and partners funding most operating and capital expenditures.

• Strategic partnerships with DEF Operating and Hydrosource provide long-term, minimum-commitment royalty agreements for water infrastructure and recycling.

• Focus on organic growth, accretive acquisitions, and diversification into non-traditional uses such as power, data centers, and waste management.

Financial performance and metrics

• Pro forma 2025 revenues: $72.2 million; net loss: $(73.1) million; adjusted EBITDA: $35.5 million; free cash flow: $30.3 million.

• Significant revenue growth from $17.7 million in 2024 to $72.2 million in 2025, driven by acquisitions and increased water sales.

• Cash flow from operations increased to $14.1 million in 2025; capital expenditures were $5.3 million.

• Pro forma balance sheet as of December 31, 2025: $282 million in assets, $306.6 million in liabilities, and $9 million in cash.

• Historical and pro forma financials reflect recent acquisitions and reorganization; future results may differ from pro forma data.

Use of proceeds and capital allocation

• All net IPO proceeds will be contributed to OpCo in exchange for OpCo Units.

• OpCo will use proceeds to repay $265.6 million of predecessor credit facility, distribute funds to existing owners, and for general corporate purposes.

• Post-offering, the company will own a minority interest in OpCo, with existing owners retaining a majority economic interest.

• Capital allocation strategy prioritizes maintaining a strong balance sheet, supporting organic and acquisition growth, and potential shareholder returns.