EagleRock, a land and resource management company that collects royalties and fees from oil and gas production on the land it controls in the Permian Basin, has raised $320.1 million in its U.S. initial public offering on Wednesday.
The Houston-based company sold 17.3 million shares at $18.50 apiece, touching a mid-point of its marketed range of $17 to $20 per share.
The U.S. IPO market has seen a tentative rebound, but a prolonged Middle East conflict continues to weigh on its stability.
The IPO also comes at a time when Middle East tensions have pushed crude prices above $100 a barrel, boosting the appeal of U.S. energy assets.
EagleRock owns or controls 236,000 acres across the Permian Basin, one of the world’s most prolific oil-producing regions, spanning West Texas and southeastern New Mexico.
By holding surface rights, EagleRock collects royalties from energy companies operating on its land, allowing it to generate revenue without directly producing oil or gas.
The Permian basin is regarded as the premier region for oil and gas development due to its prolific remaining resource, low break-even costs and robust network of service and infrastructure companies that support oil and gas development.
Companies such as Chevron, Devon Energy, EOG Resources and Exxon Mobil drill on EagleRock’s land or have permits to do so.
EagleRock said it was looking to broaden its revenue streams by exploring alternative land uses, including power generation, data centers and renewables as well as carbon-capture-related infrastructure.
Goldman Sachs, Barclays, J.P. Morgan, Piper Sandler and Raymond James are among the underwriters for the offering. EagleRock will begin trading on the New York Stock Exchange and NYSE Texas under the symbol “EROK” on Thursday.
(Reporting by Pragyan Kalita in Bengaluru and Fabiola Arámburo in Mexico City; Editing by Shailesh Kuber and Sherry Jacob-Phillips)