EagleRock Land, LLC (EROK)

Price$25.85Cached quoteAs of 2026-09-05 17:19 UTC

AI: Overvalued

Price checkThe market price assumes years of strong growth and leaves little room for disappointment.

Using 26.4 million Class A shares plus 105.2 million convertible Class B interests, the current quote implies roughly $3.4 billion of economic equity value. Management guides 2026 normalized adjusted EBITDA—earnings before interest, taxes, depreciation and amortization, adjusted for specified one-time and go-forward items—to $129-$133 million. That is about 26 times guided operating earnings. Annualizing second-quarter normalized results still gives roughly 24 times. Free cash flow, meaning cash left after running and investing in the business, annualizes to only about a 2.6%-3.4% yield. That is a demanding starting valuation.

Big pictureRevenue and cash generation are growing quickly, but the public-company history is still very short.

The supplied history shows 2025 revenue of $23.0 million versus $19.4 million in 2024, net income of $17.1 million versus $11.1 million, and operating cash flow of $15.0 million versus $3.9 million. Pasted text The 2026 reorganization makes direct comparisons imperfect, but momentum remains strong: second-quarter normalized revenue rose 32.3% from the first quarter to $46.8 million, normalized operating earnings rose 31.7% to $36.2 million, and free cash flow improved to $22.2 million from $4.4 million. The reported loss was heavily distorted by stock awards and transaction costs.

Business strengthHigh margins and contract minimums support cash, while customer and Permian activity concentration remain real risks.

The underlying model is unusually profitable: second-quarter normalized operating margin was 77.5%, while capital spending was only about $1.2 million. Contract structure adds protection, including a $40 million minimum annual royalty for five years under the DE Flow agreement and a separate $5 million annual minimum from recycled-water activity. The balance sheet had no debt and $61.8 million cash at June 30; the later $80 million acquisition borrowing is still only about 0.6 times guided 2026 operating earnings. However, four customers represented 58% of quarterly revenue, and activity still depends on Permian drilling and completions.

What could change the storyFaster land monetization could justify the premium, while dilution or weaker activity would challenge it.

The strongest bull case is that EagleRock keeps converting adjacent land, water and infrastructure rights into high-margin recurring revenue faster than the market expects. Intrepid Ranch adds about 50,000 acres, including 22,000 fee acres, and increases New Mexico fee acreage by roughly 60%. The bear case is capital discipline and dilution: the $78.2 million related-party purchase used new debt, while the long-term incentive plan authorizes up to 13.0 million Class A shares. Existing Class B conversions already represent economic ownership, so incentive issuance is the clearer dilution risk.

AI: News

Q2 growth and guidanceQuarterly cash earnings accelerated, and management set full-year guidance above its prior internal forecast.

On August 10, EagleRock reported $41.5 million of second-quarter revenue, $46.8 million of normalized revenue, $36.2 million of normalized operating earnings and $22.2 million of free cash flow. Management guided 2026 normalized operating earnings to $129-$133 million, above its original internal forecast. Investing.com reported an after-hours rise of about 8%. Because the Intrepid acquisition was announced the same day, the price move cannot be cleanly attributed to earnings alone.

Intrepid Ranch acquisitionA large adjacent land purchase expands New Mexico holdings but adds debt and execution risk.

On August 10, EagleRock bought Intrepid Ranch for $78.2 million, adding about 50,000 surface acres and 22,000 fee acres adjacent to its New Mexico footprint. The deal was funded with roughly $80 million of revolving debt. Hydrosource, a related party, had acquired substantially the same assets from Intrepid Potash for about $70 million in April; EagleRock said an independent board committee approved its purchase. The acquisition may add monetization opportunities, but its same-day announcement makes any separate stock-price effect uncertain.

Loading local price history

Revenue

2024

2025

Net income

2024

2025

Free cash flow

2024

2025

Total cash / debt

CashTotal debt

2024

2025

Financial statements

	2025	2024
Revenue	$23.0M	$19.4M
Operating expenses	$65.4M	$2.8M
Operating income	$17.1M	$11.1M
Operating margin	74.15%	56.87%
EBITDA	$17.9M	$11.6M
EBITDA margin	77.76%	59.71%
Net income	$17.1M	$11.1M
Net profit margin	74.15%	56.87%
Basic EPSper basic share	$0.01	-$0.04
Diluted EPSper diluted share	$0.01	-$0.04

Review official source filings ↗

Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys6$11.45M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 15, 2026Form 4	Nelson James CarlDirector	BuyClass A shares · indirect	50.0K	$18.50	$925.0K	50.0K
May 15, 2026Form 4	Nelson James CarlDirector	BuyClass A shares · indirect	50.0K	$18.50	$925.0K	50.0K
May 15, 2026Form 4	Wallace Michael WayneDirector	BuyClass A shares · indirect	250.0K	$18.50	$4.63M	250.0K
May 15, 2026Form 4	Reed Stephanie LDirector	BuyClass A shares	13.5K	$18.50	$250.0K	13.5K
May 15, 2026Form 4	Kumar RajDirector	BuyClass A shares	5.4K	$18.50	$100.0K	5.4K