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Eaglerock Land LLC Class A
(NYSE:EROK)
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Rating:52Neutral
Price Target:
$19.00
▼(-22.86% Downside)
Action:Reiterated
Date:10/15/26
EROK’s score is held back primarily by weak financial statement quality—large net losses alongside sharply higher leverage and zero reported equity—despite improved cash generation. Technical indicators also remain bearish with the stock below key moving averages. Offsetting these risks, the earnings call conveyed strong operational momentum, high margins, sizable free cash flow, and confident 2026 EBITDA guidance, which supports a mid-range overall score.
Positive Factors
Operating Growth and Margins
Rapid quarterly revenue and EBITDA growth, combined with a very high adjusted EBITDA margin, indicates strong operating momentum and attractive economics. If sustained, this performance can support internally funded expansion, improve resilience, and provide a durable earnings base over the next several quarters.
Negative Factors
Debt-Heavy Capital Structure
The sharp increase in debt alongside zero reported stockholders’ equity leaves limited balance-sheet flexibility and increases financial risk. Higher leverage can absorb a larger share of operating cash flow through interest and refinancing needs, constraining investment and reducing resilience if performance weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Growth and Margins
Rapid quarterly revenue and EBITDA growth, combined with a very high adjusted EBITDA margin, indicates strong operating momentum and attractive economics. If sustained, this performance can support internally funded expansion, improve resilience, and provide a durable earnings base over the next several quarters.
Read all positive factors
Eaglerock Land LLC Class A (EROK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.73B
Dividend YieldN/A
Average Volume (3M)274.31K
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees28
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.29
Shares Outstanding26,355,259
10 Day Avg. Volume420,129
30 Day Avg. Volume274,310
Financial Highlights & Ratios
PEG Ratio-17.73
Price to Book (P/B)-13.07
Price to Sales (P/S)3.85
P/FCF Ratio61.54
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue28.95
Enterprise Value/Gross Profit42.87
Enterprise Value/Ebitda-219.64
Forecast
1Y Price Target
$27.60Price Target Upside12.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.24
Revenue Forecast (FY)$168.82M
Eaglerock Land LLC Class A Business Overview & Revenue Model
Company Description
EagleRock Land, LLC functions as a specialized land management firm. The company oversees a significant portfolio of surface acres within the Permian Basin, comprising roughly 236,000 acres either directly owned or controlled. Additionally, it hol...
Eaglerock Land LLC Class A Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum following the IPO: high revenue and EBITDA growth (~32% QoQ), robust margins (77.5%), substantial free cash flow generation, a meaningful liquidity cushion, and an accretive contiguous acquisition that expands fee acreage by ~60% in New Mexico. Management highlighted predictable cash flows via long-term agreements (DE Flow/Double Eagle) and multiple avenues of optional upside (water infrastructure, commercial developments, data center and power opportunities). The primary negatives were higher public-company G&A expectations, an interest drag from a predecessor credit facility that temporarily reduced reported free cash flow conversion, and the typical macro/commodity uncertainties; Intrepid's EBITDA was also conservatively excluded from guidance. Overall, positives significantly outweigh the limited lowlights.Positive Updates
Strong Quarterly Revenue and EBITDA Growth
Normalized revenue of $46.8 million in Q2, up ~32% versus Q1 2026; normalized adjusted EBITDA of $36.2 million, up ~32% versus Q1, with adjusted EBITDA margins of 77.5%.
Negative Updates
Public Company Operating Costs and G&A Build
Management is modeling increased public company costs (referenced modeling of ~$26 million of G&A annually) as operations normalize post-IPO, which adds ongoing expense pressure relative to pre-IPO run rates.
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Q2-2026 Updates
Positive
Negative
Strong Quarterly Revenue and EBITDA Growth
Normalized revenue of $46.8 million in Q2, up ~32% versus Q1 2026; normalized adjusted EBITDA of $36.2 million, up ~32% versus Q1, with adjusted EBITDA margins of 77.5%.
Read all positive updates
Company Guidance
Management initiated full‑year 2026 guidance for normalized adjusted EBITDA of $129–$133 million (excludes incremental EBITDA from the Intrepid acquisition), after reporting Q2 normalized revenue of $46.8 million (+32% vs Q1), normalized adjusted EBITDA of $36.2 million (+~32% QoQ) and adjusted EBITDA margin of 77.5%. Q2 revenue mix was resource sales $24.2M (52%), surface use royalties $15.5M (33%) and surface use revenues $7.1M (15%); water sales volumes rose ~9% QoQ. The company generated $22.2M of free cash flow on $1.2M of capex (FCF conversion 75%; ~96% adjusted excluding predecessor credit interest), held $61.8M cash and $261.8M available liquidity on June 30, models annual G&A of ~$26M and capex of $2–3M, and expects free cash flow conversion to remain above 90%. The Intrepid Ranch deal (~50,000 acres, ~22,000 fee acres; $78.2M headline / $77.1M net purchase price; implied <9x EBITDA) is expected to be accretive and was estimated to add roughly $2M of EBITDA per quarter but is excluded from 2026 guidance.Eaglerock Land LLC Class A Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 64.58M | 141.44M | 17.70M |
| Gross Profit | 43.60M | 69.45M | 5.45M |
| EBITDA | -8.51M | 17.92M | 11.60M |
| Net Income | -4.20M | 357.00K | -1.07M |
Balance Sheet | |||
| Total Assets | 1.80B | 1.52B | 86.69M |
| Cash, Cash Equivalents and Short-Term Investments | 61.77M | 15.22M | 1.06M |
| Total Debt | 1.49M | 300.67M | 72.00M |
| Total Liabilities | 58.41M | 9.91M | 87.77M |
| Stockholders Equity | 327.83M | -41.72M | -1.07M |
Cash Flow | |||
| Free Cash Flow | -3.95M | 8.86M | -299.00K |
| Operating Cash Flow | -2.17M | 14.14M | 907.00K |
| Investing Cash Flow | -63.94M | -204.96M | -64.56M |
| Financing Cash Flow | 118.84M | 199.09M | 64.71M |
Eaglerock Land LLC Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.12B | 34.12 | 5.88% | ― | 15.03% | -69.48% | |
68 Neutral | $2.19B | 23.19 | 9.43% | ― | 23.55% | 21.73% | |
67 Neutral | $1.84B | 12.64 | 15.28% | 2.36% | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $2.98B | -15.42 | -9.76% | ― | 69.84% | -238.39% | |
52 Neutral | $2.73B | -71.48 | -2.90% | ― | ― | ― | |
50 Neutral | $1.18B | -9.94 | -10.04% | 2.75% | -8.11% | -822.25% |
* General Sector Average
EROK
Eaglerock Land LLC Class A
20.73
-1.11
-5.08%
INVX
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30.37
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43.80%
DNOW
Now
16.50
1.75
11.86%
NESR
National Energy Services Reunited
21.74
7.64
54.18%
AESI
Atlas Energy Solutions
9.44
-2.65
-21.92%
FLOC
Flowco Holdings Inc Class A
20.35
4.72
30.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.