EagleRock, a land management company, raises $320 million through its US IPO
EagleRock, an American land and resource management firm that collects royalties and fees for oil and gas production in the Permian basin on the lands it controls, raised $320.1 million on Wednesday through its initial public offering.
The Houston-based firm sold 17.3 millions shares at $18.50 each, hitting the mid-point in its range of $17-$20 per share.
The U.S. IPO Market has experienced a modest rebound but a long-term conflict in the Middle East continues to be a factor that affects its stability.
The IPO comes at a time of Middle East tensions that have pushed crude oil prices over $100 a barrel. This has boosted the appeal of U.S. Energy assets.
EagleRock controls or owns 236,000 acres in the Permian basin, one of the most prolific oil producing regions on the planet, which spans West Texas and the southeastern part of New Mexico.
EagleRock can generate revenue by holding surface rights. It collects royalties on behalf of energy companies that operate on its land.
Permian Basin is considered the premier oil and natural gas region due to its abundant remaining resources, low breakeven costs, and a robust network of infrastructure and service companies that support oil development.
EagleRock is a landowner. Companies like?Chevron and Devon Energy 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 were among the underwriters of this offering. EagleRock 'will begin trading under the symbol EROK on Thursday on the NYSE and the New York Stock Exchange.
(source: Reuters)
