Aug 10, 2026, 9:34 PM ETEnergy

EagleRock — Second Quarter 2026 Earnings Summary

EROKEAGLEROCK LAND LLC

Financial Performance

Reported revenue for the quarter ended June 30, 2026, was $41.5 million, compared to $23.9 million in the same period in 2025.
Reported net loss for the quarter was $(37.5) million, compared to a net loss of $(70.8) million in the prior year period.
Normalized revenue was $46.8 million, representing a 32.3% increase versus the first quarter of 2026.
Normalized Adjusted EBITDA was $36.2 million, representing a 31.7% increase versus the first quarter of 2026.
Normalized Adjusted EBITDA margin was 77.5%, compared to 77.9% in the first quarter of 2026.
Free Cash Flow for the quarter was $22.2 million, compared to $4.4 million in the first quarter of 2026.
Free Cash Flow conversion was 96% when excluding $6.4 million in cash interest expense related to the predecessor credit facility, which was repaid on June 3, 2026.
Total liquidity as of June 30, 2026, was $261.8 million, comprised of $61.8 million in cash and cash equivalents and $200 million in available borrowing capacity under a revolving credit facility.
Total assets increased to $1.80 billion as of June 30, 2026, from $282.0 million as of December 31, 2025.
Total shareholders' equity attributable to EagleRock Land, LLC was $327.8 million as of June 30, 2026.

For the full year 2026, the Company expects Normalized EBITDA to range from $129 million to $133 million, exceeding its original internal forecast.
The Company noted that reconciliations of forward-looking non-GAAP financial measures to GAAP measures are not available due to the impracticability of estimating certain non-recurring items, transaction costs, and tax impacts.

Resource sales revenues were $28.2 million in the second quarter, or 68% of total revenue, up 48% from the first quarter; normalized resource sales revenues were $24.2 million, up 53.1% from the first quarter, driven by 7.0 MMBbls of brackish water sold and higher caliche sales.
Surface use revenues were $5.9 million in the second quarter, or 14% of total revenue, up 84% from the first quarter; normalized surface use revenues were $7.1 million, up 74.3% from the first quarter, driven by additional surface damage and easement fees.
Surface use royalties revenues were $7.4 million in the second quarter, or 18% of total revenue, up 837% from the first quarter; normalized surface use royalties revenues were $15.5 million, flat with the first quarter, driven primarily by produced water takeaway and recycled water sales.

EagleRock holds a position in the Delaware and Midland sub-basins within the Permian Basin, owning or controlling approximately 286,000 acres.
The Company has an interest in up to approximately 70,000 acres pursuant to an acreage dedication related to its Midland Basin water infrastructure assets.
Management stated the Company is co-located with some of the deepest, most economic drilling inventory in the country.

Forward-looking statements are subject to risks including the ability to actively manage new assets, renegotiate surface use agreements, and create new revenue opportunities.
Risks include commodity price volatility, changes in state and federal land use policies, customer concentration, and the ability to maintain and renew leases and permits.
Potential impacts from global supply and demand for energy, OPEC+ production actions, and political instability in oil and gas producing regions are noted.
Risks also include title defects in acquired acreage, integration of acquired acreage, and changes in environmental and water-related rules.

CEO Greg Pipkin described the Company's position as strong, noting that the platform pieces are worth more together than apart, delivering durable cash flow largely independent of commodity price swings.
Management highlighted that second-quarter revenue and Normalized Adjusted EBITDA growth of more than 30% quarter-over-quarter was consistent with expectations set at the IPO.
Management expressed confidence in applying an active management playbook to new assets, including renegotiating surface use agreements, expanding water infrastructure, and unlocking royalty opportunities.

On May 15, 2026, the Company completed an initial public offering on the NYSE and NYSE Texas, issuing 19.9 million Class A shares at $18.50 per share, raising approximately $368 million in gross proceeds.
On August 10, 2026, the Company acquired Intrepid Ranch, a 50,000-acre position with 22,000 fee acres in Lea County, New Mexico, for $78.2 million, expanding its contiguous Delaware Basin footprint.
The predecessor company's credit facility was repaid in full and terminated on June 3, 2026.
The Company reported a gain on extinguishment of debt of $20.4 million in the second quarter.
Share-based compensation expenses included $57.4 million for IPO share-based compensation and $4.1 million for RSU share-based compensation in the second quarter.
Transaction-related expenses totaled $11.3 million in the second quarter.