EagleRock, a Houston-based firm that derives revenue from royalties and fees tied to oil and gas activity on land it owns or controls in the Permian Basin, is assessing a U.S. initial public offering that market participants say could place its valuation as high as $2 billion.
People familiar with the matter said the company has retained Goldman Sachs to advise on a possible listing, and two of those sources indicated the offering could occur as soon as the second quarter. The sources cautioned that plans remain fluid and spoke on condition of anonymity to discuss confidential deliberations.
The timing of the contemplated IPO coincides with a period of elevated crude prices driven by conflict in the Middle East. That turmoil has produced a pronounced global energy shock and has increased investor appetite for U.S. oil and gas assets, which continue to produce and transport hydrocarbons without disruption from the regional conflict, the sources said.
EagleRock operates differently from conventional producers. By holding surface rights over acreage in the Delaware and Midland sub-basins of the Permian in Texas and New Mexico, the company collects royalties from operators working the leases and earns fees tied to services it provides, including water handling infrastructure used in hydraulic fracturing. The business model allows EagleRock to generate revenue without being a traditional producer of oil and gas.
Because energy and equity markets have been volatile, the timing and ultimate valuation of any IPO could shift materially. Insider estimates put a potential valuation in a range from $1 billion to $2 billion, reflecting the uncertainty that market movements can introduce into an offering process.
The company has not publicly disclosed its ownership structure on its website. Sources familiar with EagleRock’s portfolio said the assets were assembled from contributions by several entrepreneurs, including Greg Mabee, who is part of a prominent Texas oil family and is reported by one source to own one of the largest ranches within the Permian. Mabee did not respond to a request for comment.
Management listed on EagleRock’s website includes Chief Executive Officer Greg Pipkin Jr. and Chief Financial Officer Neal Shah. The firm notes Mr. Pipkin previously worked on corporate strategy at a natural resources company that listed in January of last year, while Mr. Shah was CFO at Pioneer Natural Resources when that company was acquired for $60 billion by Exxon Mobil in 2024.
If EagleRock proceeds with a U.S. listing, it would represent a relatively rare initial public offering in the United States for an oil and gas-related company. New energy listings have been infrequent in recent years as many investors prioritized environmental concerns and private sellers often found buyers among publicly listed peers seeking additional acreage and resources.
Nonetheless, the renewed demand for natural gas to power growing segments of the economy, including data center infrastructure supporting artificial intelligence workloads, has contributed to a swing of investor interest back toward oil and gas assets, according to the sources.
Market observers note recent public-market precedents for Permian-focused companies. LandBridge, a comparable Permian-focused operator, has seen its shares gain nearly 300 percent since its June 2024 IPO, while WaterBridge, a related water infrastructure affiliate, is up about 26 percent since it listed in September. These performances illustrate the range of investor responses to new public offerings tied to Permian assets.
Goldman Sachs declined to comment, and EagleRock did not provide a response to a request for comment.
Summary
EagleRock, which collects royalties and operates water-handling infrastructure on surface-controlled acreage in the Delaware and Midland basins, has engaged Goldman Sachs as it explores a U.S. IPO that market sources say could value the company between $1 billion and $2 billion. The potential offering is being considered amid higher crude prices tied to conflict in the Middle East and could occur as soon as the second quarter, though plans are subject to change.
Key points
- EagleRock's business model centers on surface rights and royalty collection rather than direct oil and gas production, and it also controls water infrastructure used in hydraulic fracturing - impacts oil and water services sectors.
- The firm has engaged Goldman Sachs to advise on a potential U.S. IPO, with sources saying a transaction could value the company from $1 billion to $2 billion and may be timed for the second quarter - impacts capital markets and investment banking activity.
- Heightened crude prices linked to Middle East conflict have increased investor interest in U.S. energy assets, influencing the potential appeal and timing of the IPO - impacts energy markets and investor demand for fossil fuel assets.
Risks and uncertainties
- Market volatility in energy and equities could materially alter the timing and valuation of any IPO - affecting the company's access to public capital and investor reception in equity markets.
- Plans remain subject to change as they are based on confidential deliberations and market conditions; there is no guarantee the company will proceed with a listing - introducing execution risk to the potential transaction.
- Investor preference shifts, including environmental concerns or changing demand for hydrocarbon-linked investments, could reduce appetite for a new oil and gas-related IPO - impacting demand in energy and ESG-focused investment sectors.