By David French and Shariq Khan
NEW YORK, April 15 (Reuters) - EagleRock, a company that collects royalties and fees from oil and gas production on the land it controls in the Permian Basin, is exploring
a U.S. initial public offering that could value it at up to $2 billion, people familiar with the matter said.
The Houston-based firm has hired Goldman Sachs on the potential rare U.S. oil and gas listing, four of the sources said, with two adding it could come as soon as the second quarter.
The listing plan comes as crude prices have soared due to the conflict in the Middle East. The turmoil has triggered one of the greatest-ever global energy shocks and boosted the appeal of U.S. assets, which have continued to move oil and gas unencumbered by the war.
EagleRock owns and controls land in the Delaware and Midland portions of the Permian, the heart of the U.S. shale industry in Texas and New Mexico, as well as infrastructure to handle water used in the hydraulic fracturing process, according to its website.
By holding surface rights, it collects royalties from energy companies operating on its land, allowing EagleRock to earn revenue without producing.
Volatile energy and stock markets mean the IPO's timing and the value EagleRock achieves could fluctuate significantly, with the sources forecasting a valuation of between $1 billion and $2 billion. They cautioned that plans remain subject to change, and spoke on condition of anonymity to discuss confidential deliberations.
EagleRock did not respond to a comment request. Goldman declined to comment.
RARE ENERGY IPO
Should EagleRock's listing proceed, it would mark a rare U.S. oil and gas IPO. For many years, investors' prioritization of environmental concerns limited appetite for new listings, while private owners found buyers among listed competitors eager for additional resources. While the sale option remains, demand for natural gas to support rising power generation, especially for artificial intelligence infrastructure, is drawing many investors back to oil and gas.
Logical public comparisons for EagleRock would be Permian-focused LandBridge, and its water infrastructure affiliate WaterBridge. LandBridge shares have gained almost 300% since its June 2024 IPO, while WaterBridge is up 26% since listing in September.
EagleRock's website does not disclose its ownership. Sources said the company's portfolio combines oil and gas assets from a handful of entrepreneurs. They include Greg Mabee, part of the famed Texas oil family that owns one of the largest ranches within the Permian, according to one of the sources. Mabee did not respond to a comment request.
Among the management listed on EagleRock's website are CEO Greg Pipkin Jr., who previously led corporate strategy at Infinity Natural Resources, which itself listed in January last year, and Chief Financial Officer Neal Shah, who held the same role at Pioneer Natural Resources when it was bought for $60 billion by Exxon Mobil in 2024.
(Reporting by David French and Shariq Khan in New York, editing by Echo Wang, Rod Nickel)
