EagleRock Land, a real estate management company, reported a rise in annual revenue in documents filed on Thursday for a U.S. initial public offering, positioning itself as a rare listing in the energy sector amid renewed investor interest in the industry.
The Houston-based company reported a net loss of $73.1 million for the year ended December 31, a larger loss compared to $1.1 million the previous year. Its revenue increased from $17.7 million to $72.2 million.
The IPO comes at a time when oil and gas listings in the United States are scarce after years of investor caution, despite rising crude prices due to Middle East conflict and disruptions in the Strait of Hormuz renewing interest in energy assets.
EagleRock generates revenue by collecting royalties and rights on oil and gas activities carried out on the lands it owns or controls, rather than conducting drilling itself, enabling it to earn revenue primarily based on royalties with limited operating costs.
The company owns or controls approximately 236,000 acres in the prolific Permian Basin, extending from West Texas to Southeastern New Mexico.
The Permian Basin is divided into two main zones: the Midland Basin, primarily in Texas, and the Delaware Basin, which extends from West Texas to New Mexico.
The company has not disclosed the amount it aims to raise, but Reuters reported earlier that EagleRock is targeting a valuation between $1 and $2 billion, with Goldman Sachs, Barclays, J.P. Morgan, Piper Sandler, and Raymond James as underwriters for the offering.
EagleRock plans to list its shares on the New York Stock Exchange under the symbol “EROK”.
