UPDATE 2-Permian-focused EagleRock Land pops in NYSE debut, hits $3 billion valuation

Eaglerock Land LLC Class A

Eaglerock Land LLC Class A

EROK

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- EagleRock Land EROK.N secured a valuation of about $3 billion after the Permian landowner's shares rose 24.3% in their New York Stock Exchange debut on Thursday, signaling solid investor demand for energy sector offerings.

The Houston-based company's stock opened at $23 apiece, compared with the $18.50 offer price. It sold 17.3 million shares in its IPO to raise $320.1 million.

The debut comes as the Middle East conflict — which has triggered one of the greatest-ever global energy shocks — drives up crude prices and lifts interest in U.S. assets, prompting more oil and gas companies to pursue market listings.

The week has been busy for new listings, with three IPOs raising more than $1 billion. AI chipmaker Cerebras Systems and Blackstone Digital Infrastructure Trust are set to debut alongside EagleRock, while Fervo Energy shares surged in their Wednesday debut.

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.

The company generates revenue by leasing these assets and resource rights to energy producers and emerging industries, with Chevron, Devon Energy, EOG Resources and Exxon Mobil among those drilling on its land or holding permits to do so.

Its public market peers include Permian-focused LandBridge LB.N and its water infrastructure affiliate WaterBridge WBI.N.

As of the last close, LandBridge shares had gained nearly 300% from their June 2024 IPO price, while WaterBridge shares were up almost 45% from their offering price since listing in September.

The company's CEO, ​Greg Pipkin Jr., previously led corporate strategy at Infinity Natural Resources INR.N, which went public in January last year.