EagleRock Announces Second Quarter 2026 Results
Key Terms
non-gaap financial measures financial
free cash flow conversion financial
over-allotment option financial
revolving credit facility financial
Delivers strong second quarter results surpassing company expectations
Initiates full-year 2026 financial guidance above company forecast
Second Quarter and Recent Financial and Business Highlights
-
Successfully completed an initial public offering on the NYSE and NYSE Texas on May 15, 2026, issuing 19.9 million Class A shares, including the full exercise of the underwriters' over-allotment option, at a price of
$18.50 $368 million -
Reported revenue of
$41.5 million -
Reported net loss of
$(37.5) million -
Normalized revenue(1)(2) of
$46 32.3% versus the first quarter of 2026 -
Normalized Adjusted EBITDA(1)(2) of
$36.2 million 31.7% versus the first quarter of 2026 -
Normalized Adjusted EBITDA margin(1)(2) of
77.5% compared to77.9% in first quarter of 2026 -
Liquidity of
$261.8 million -
On August 10, 2026, acquired Intrepid Ranch, an approximately 50,000-acre, 22,000-fee-acre position in
Lea County, New Mexico directly adjacent to EagleRock's existing surface footprint, for a total purchase price of$78.2 million Delaware Basin position.
Management Commentary
“EagleRock holds a stronghold position in two of the most important sub-basins in the Permian, co-located with some of the deepest, most economic drilling inventory in the country,” said Greg Pipkin, Chief Executive Officer of EagleRock. “The pieces of this platform are worth more together than they'd be apart, reinforced by our strategic partners. Together, they deliver durable, royalty and fee driven cash flow that moves largely independent of commodity price swings, a broader base to keep growing organically and through acquisition, and meaningful upside as the Permian evolves into a full-scale energy ecosystem.”
“We're already delivering on that growth potential. In the second quarter, we delivered more than
Second Quarter Results
EagleRock generated normalized revenue of
Normalized Adjusted EBITDA was
Diversified Revenue Streams
Resource Sales revenues were
Surface Use Revenues were
Surface Use Royalties revenues were
Free Cash Flow Generation
Free Cash Flow3 for the second quarter of 2026 was
| _________________________________ |
1 EagleRock's reorganization and IPO closed May 15, 2026; results for the period prior reflect the predecessor structure. Normalized figures recast January 1 – May 14, 2026 as if EagleRock had operated in its current, post-IPO form for the entire six-month period, for comparability across the full six months; see reconciliation included |
2 Normalized Revenue, Normalized Adjusted EBITDA and Normalized Adjusted EBITDA Margin are non-GAAP financial measures. See Comparison of Non-GAAP Financial Measures for a discussion of these measures and a reconciliation of these measures to our most directly comparable financial measures calculated and presented in accordance with GAAP. |
3 Free Cash Flow is a non-GAAP financial measure. See Comparison of Non-GAAP Financial Measures for a discussion of this measure and a reconciliation of this measure to our most directly comparable financial measure calculated and presented in accordance with GAAP. |
IPO and Liquidity
The Company successfully completed an initial public offering on the NYSE and NYSE Texas on May 15, 2026, issuing 19.9 million Class A shares, including the full exercise of the underwriters' over-allotment option, at a price of
As of June 30, 2026, the Company had total liquidity of
2026 Outlook
For the full year 2026, the Company now expects Normalized EBITDA to exceed its original internal forecast and is expected to range from
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability of estimating certain items, particularly non-recurring gains or losses, unusual or non-recurring items, income tax benefit or expense, or one-time transaction costs and cost of revenue. We are unable to reasonably predict these because they are uncertain and depend on various factors not yet known, which could have a material impact on GAAP results for the guidance period. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
Conference Call and Webcast Information
The Company will hold a conference call on August 11, 2026 at 10:00 am ET / 9:00 am CT to discuss second quarter results. A live webcast of the conference call will be available on the "Events & Presentations" section of the EagleRock Investor Relations website at https://ir.erok.com/events-and-presentations/default.aspx.
Additionally, a replay will be available shortly after the call's conclusion. Analysts and investors looking to participate in the Q&A can access the call by dialing (833) 461-5787 or (585) 542-9983 and entering 516 046 936 as the meeting ID.
About EagleRock
EagleRock (NYSE: EROK) is a land management company that owns or controls approximately 286,000 acres in the heart of the
Cautionary Statement Concerning Forward-Looking Statements
The information in this press release relates to EagleRock Land, LLC (the “Company,” “EROK,” “we,” “us” or “our”) and contains information that includes or is based upon “forward-looking statements.” All statements other than historical facts are forward-looking statements, and include statements regarding EROK’s future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives and intentions of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of our management and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, projected in, or implied by, such statements.
Although EROK believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause EROK’s actual results to be materially different from those expressed in its forward-looking statements are described under the heading “Risk Factors” in its final prospectus filed with the SEC on May 14, 2026 (the “Prospectus”) and the other reports and materials it files with the SEC. These factors include, but are not limited to: any statements regarding the Acquisition, including our ability to actively manage the new assets, the ability to renegotiate and modernize surface use agreements, creating new revenue opportunities and the expected benefits of the Acquisition, including expected accretion, integration plans, synergies, opportunities and anticipated future performance, customer demand for and use of EROK’s surface, resource, and water infrastructure assets; enforceability of its surface use agreements and other customer agreements; its operating partners’ success in executing their strategies; customers’ ability or decisions to develop EROK’s land or acquired acreage; global supply of and demand for energy, including OPEC+ production actions; customer and geographic concentration of its revenues; EROK’s ability to enter into favorable surface use, access, and fee contracts; EROK’s ability to maintain and renew leases and permits on state and federal land; changes in state and federal land use policies affecting its leased land; execution of EROK’s business strategies, including attracting customers; commodity price volatility; competition, including alternative resources; changes in the price and availability of services EROK’s customers need; planned or future expansion projects; advances or changes in energy technologies or practices; execution of EROK’s growth plans, including acquisitions and new revenue streams; deterioration of customers’ financial condition and access to capital; effects of customer consolidation on
EROK cautions you not to place undue reliance on forward-looking statements contained in this press release, which speak only as of the date hereof, and EROK is under no obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release may also contain information from third-party sources. This data may involve a number of assumptions and limitations, and EROK has not independently verified them and does not warrant the accuracy or completeness of such third-party information.
SECOND QUARTER 2026 RESULTS CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands) (unaudited) |
|||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
REVENUES |
|
|
|
|
|
|
|
|
|
||||
Resource sales |
|
$ |
28,202 |
|
$ |
19,215 |
|
$ |
47,155 |
|
$ |
24,154 |
|
Resource sales - related party |
|
|
25 |
|
|
509 |
|
|
151 |
|
|
509 |
|
Surface use related revenues |
|
|
5,851 |
|
|
3,181 |
|
|
9,033 |
|
|
5,166 |
|
Surface use royalties |
|
|
1,440 |
|
|
958 |
|
|
2,234 |
|
|
1,102 |
|
Surface use royalties - related party |
|
|
6,008 |
|
|
— |
|
|
6,008 |
|
|
— |
|
Total revenues |
|
|
41,526 |
|
|
23,863 |
|
|
64,581 |
|
|
30,931 |
|
|
|
|
|
|
|
|
|
|
|
||||
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
|
||||
Cost of sales (exclusive of depreciation and amortization) |
|
|
6,103 |
|
|
7,722 |
|
|
10,960 |
|
|
9,608 |
|
Related party cost of sales |
|
|
2,564 |
|
|
2,504 |
|
|
5,425 |
|
|
3,627 |
|
General and administrative expense |
|
|
75,731 |
|
|
3,709 |
|
|
80,319 |
|
|
4,720 |
|
Related party general and administrative expense |
|
|
— |
|
|
212 |
|
|
6 |
|
|
231 |
|
Depreciation and amortization expense |
|
|
10,275 |
|
|
4,445 |
|
|
14,866 |
|
|
5,838 |
|
Loss (gain) on sale of property, plant and equipment, net |
|
|
9 |
|
|
— |
|
|
9 |
|
|
30 |
|
Gain on investment in sales-type lease |
|
|
— |
|
|
— |
|
|
(3,275 |
) |
|
— |
|
Total operating expenses |
|
|
94,682 |
|
|
18,592 |
|
|
108,310 |
|
|
24,054 |
|
INCOME (LOSS) FROM OPERATIONS |
|
|
(53,156 |
) |
|
5,271 |
|
|
(43,729 |
) |
|
6,877 |
|
|
|
|
|
|
|
|
|
|
|
||||
OTHER EXPENSE (INCOME) |
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
4,812 |
|
|
6,068 |
|
|
10,646 |
|
|
8,783 |
|
Loss (gain) on extinguishment of debt |
|
|
(20,352 |
) |
|
70,001 |
|
|
(20,352 |
) |
|
70,001 |
|
Total other expense (income) |
|
|
(15,540 |
) |
|
76,069 |
|
|
(9,706 |
) |
|
78,784 |
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
(37,616 |
) |
|
(70,798 |
) |
|
(34,023 |
) |
|
(71,907 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense (benefit) |
|
|
(80 |
) |
|
— |
|
|
150 |
|
|
— |
|
NET INCOME (LOSS) |
|
$ |
(37,536 |
) |
$ |
(70,798 |
) |
$ |
(34,173 |
) |
$ |
(71,907 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO PREDECESSOR |
|
$ |
2,261 |
|
|
|
$ |
5,624 |
|
|
|
||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST |
|
$ |
(32,235 |
) |
|
|
$ |
(32,235 |
) |
|
|
||
NET INCOME (LOSS) ATTRIBUTABLE TO EAGLEROCK LAND, LLC |
|
$ |
(7,562 |
) |
|
|
$ |
(7,562 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Basic and dilutive net income (loss) per Class A share |
|
$ |
(0.29 |
) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||
Basic and dilutive weighted average Class A shares outstanding |
|
|
26,374,967 |
|
|
|
|
|
|
|
|||
CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||||
|
|
|
|
|
|
||
|
|
June 30,
|
|
December 31,
|
|
||
ASSETS |
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
61,770 |
|
$ |
9,042 |
|
Accounts receivable, net |
|
|
12,668 |
|
|
13,096 |
|
Accounts receivable - related party |
|
|
13,032 |
|
|
— |
|
Inventory |
|
|
308 |
|
|
310 |
|
Prepaid expenses and other current assets |
|
|
2,323 |
|
|
8,765 |
|
Total current assets |
|
|
90,101 |
|
|
31,213 |
|
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
377,897 |
|
|
55,586 |
|
Right of use assets, net |
|
|
1,541 |
|
|
1,565 |
|
Intangible assets, net |
|
|
674,174 |
|
|
191,240 |
|
Goodwill |
|
|
643,270 |
|
|
|
|
Net investment in sales-type lease |
|
|
3,215 |
|
|
— |
|
Deferred offering costs |
|
|
— |
|
|
1,459 |
|
Other noncurrent assets |
|
|
5,985 |
|
|
947 |
|
TOTAL ASSETS |
|
$ |
1,796,183 |
|
$ |
282,010 |
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS' AND MEMBERS' EQUITY |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable |
|
$ |
4,547 |
|
$ |
4,433 |
|
Accounts payable - related party |
|
|
35,418 |
|
|
2,684 |
|
Accrued liabilities |
|
|
3,173 |
|
|
2,909 |
|
Current income taxes payable |
|
|
224 |
|
|
42 |
|
Current deferred revenue |
|
|
202 |
|
|
533 |
|
Current operating lease liability |
|
|
122 |
|
|
492 |
|
Current debt - related party |
|
|
— |
|
|
6,038 |
|
Total current liabilities |
|
|
43,686 |
|
|
17,131 |
|
|
|
|
|
|
|
||
Non-current liabilities |
|
|
|
|
|
||
Operating lease liability, less current portion |
|
|
1,364 |
|
|
1,019 |
|
Deferred tax liability, net |
|
|
10,680 |
|
|
10,852 |
|
Deferred revenue, less current portion |
|
|
— |
|
|
94 |
|
Long-term debt - related party, less current portion |
|
|
— |
|
|
294,629 |
|
Other noncurrent liabilities |
|
|
2,677 |
|
|
— |
|
Total non-current liabilities |
|
|
14,721 |
|
|
306,594 |
|
|
|
|
|
|
|
||
SHAREHOLDERS' AND MEMBERS' EQUITY |
|
|
|
|
|
||
Members' deficit |
|
|
— |
|
|
(41,715 |
) |
Class A shares, unlimited shares authorized and 24,455,688 shares issued and outstanding as of June 30, 2026. None authorized, issued or outstanding as of December 31, 2025 |
|
|
335,374 |
|
|
— |
|
Class B shares, unlimited shares authorized and 105,164,311 shares issued and outstanding as of June 30, 2026. None authorized, issued or outstanding as of December 31, 2025 |
|
|
20 |
|
|
— |
|
Retained earnings |
|
|
(7,562 |
) |
|
— |
|
Total shareholders' equity attributable to EagleRock Land, LLC |
|
|
327,832 |
|
|
— |
|
Noncontrolling interest |
|
|
1,409,944 |
|
|
— |
|
Total shareholders' equity and members' equity |
|
$ |
1,737,776 |
|
$ |
(41,715 |
) |
TOTAL LIABILITIES AND EQUITY |
$ |
1,796,183 |
|
$ |
282,010 |
|
|
Comparison of Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are supplemental non-GAAP financial measures that we use to evaluate current, past and expected future performance. Although these non-GAAP financial measures are important factors in assessing our operating results and cash flows, they should not be considered in isolation or as a substitute for net income or gross margin or any other measures of financial performance presented in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin are used by our management and by external users of our Financial Statements, such as investors, research analysts and others, to assess the financial performance of our assets over the long term to generate sufficient cash to return capital to equity holders or service indebtedness. We define Adjusted EBITDA as net income (loss) minus interest, taxes, depreciation, amortization, depletion and accretion, which we refer to as “EBITDA” and from which we further deduct share-based compensation, non-recurring transaction-related expenses and other non-cash or non-recurring expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue.
Management believes Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow us and external users of our Financial Statements to more effectively evaluate our operating performance and compare the results of our operations from period to period, and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA and Adjusted EBITDA Margin because these amounts can vary substantially from company to company within our industry, depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired. Our computations of these measures may differ from the computations of similarly titled measures of other companies.
Free Cash Flow, Free Cash Flow Margin and Free Cash Flow Conversion are performance measures used by our management and by external users of our Financial Statements, such as investors, research analysts and others, to assess our ability to generate cash from operations to repay our indebtedness, return capital to our shareholders and fund potential acquisitions without access to external sources of financing for such purposes. To calculate Free Cash Flow, net income is adjusted by the same items discussed above for EBITDA and Adjusted EBITDA (other than interest expense and income tax expense / benefit) and then further adjusted for incurred capital expenditures, changes in accounts payable related to capital expenditures, non-cash interest expense, and non-cash tax expense. Free Cash Flow Margin is calculated as Free Cash Flow divided by total revenue. Free Cash Flow Conversion is calculated as Free Cash Flow divided by Adjusted EBITDA.
Management believes Free Cash Flow, Free Cash Flow Margin and Free Cash Flow Conversion are useful because they allow for an effective evaluation of both our operating and financial performance, as well as the capital intensity of our business, and subsequently the ability of our operations to generate cash flow that is available to distribute to our shareholders, reduce leverage or support acquisition activities. Our computations of these measures may differ from the computations of similarly titled measures of other companies.
Normalized Revenue is used by our management and is useful to investors, research analysts and other external users of our Financial Statements to assess our operating performance on a basis that reflects our expected go-forward business following our initial public offering. Because our results for the three and six months ended June 30, 2026 include only a partial period of operations as a public company and do not reflect the full effect of certain items that we expect to characterize our operations on a go-forward basis, we present Normalized Revenue to illustrate what our Revenue would approximate had these items been in effect for the full periods presented. We define Normalized Revenue as Revenue adjusted for normalizing adjustments, which consist of the addition of revenue from assets contributed in the corporate reorganization in connection with our initial public offering and the exclusion of revenue attributable to our predecessor that are not expected to recur on a go-forward basis.
Normalized Adjusted EBITDA and Normalized Adjusted EBITDA Margin are used by our management and are useful to investors, research analysts and other external users of our Financial Statements to assess our operating performance on a basis that reflects our expected go-forward business following our initial public offering. Because our results for the three and six months ended June 30, 2026 include only a partial period of operations as a public company and do not reflect the full effect of certain items that we expect to characterize our operations on a go-forward basis, we present Normalized Adjusted EBITDA to illustrate what our Adjusted EBITDA would approximate had these items been in effect for the full periods presented. We define Normalized Adjusted EBITDA as Adjusted EBITDA further adjusted for normalizing adjustments, which consist of the addition of revenue from assets contributed in the corporate reorganization in connection with our initial public offering; the exclusion of revenue attributable to our predecessor that are not expected to recur on a go-forward basis; operating costs associated with newly acquired surface acreage and assets from the Shallow Valley Contribution; amortization of RSU expense on a normalized basis; and other general and administrative expenses associated with operating as a public company. We define Normalized Adjusted EBITDA Margin as Normalized Adjusted EBITDA divided by Normalized Revenue.
Management believes Normalized Adjusted EBITDA and Normalized Adjusted EBITDA Margin are useful because they allow us and external users of our Financial Statements to evaluate the earnings profile we expect to result from operating as a public company over the whole period for which the measures are given, giving effect to items listed above. The normalizing adjustments reflect management's estimates of the annualized or go-forward effect of these items and are based on assumptions that management believes to be reasonable. These are not prepared in accordance with Article 11 of Regulation S-X or otherwise intended to represent pro forma financial information.
The following table sets forth a reconciliation of net income (loss) as determined in accordance with GAAP to Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Free Cash Flow Margin for the periods indicated.
|
Three Months Ended March 31, |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|||
|
2026 |
|
2026 |
|
2026 |
|
|||
Net income (loss) |
$ |
3,363 |
|
$ |
(37,536 |
) |
$ |
(34,173 |
) |
Adjustments: |
|
— |
|
|
— |
|
|
— |
|
Depreciation and amortization |
|
4,591 |
|
|
10,275 |
|
|
14,866 |
|
Non Cash Interest |
|
(2,454 |
) |
|
(1,564 |
) |
|
(4,018 |
) |
Non Cash Taxes |
|
(18 |
) |
|
(154 |
) |
|
(172 |
) |
Gain on investment in sales-type lease |
|
(3,275 |
) |
|
— |
|
|
(3,275 |
) |
Gain on extinguishment of debt |
|
— |
|
|
(20,352 |
) |
|
(20,352 |
) |
Share-based compensation - IPO share-based compensation expense |
|
— |
|
|
57,350 |
|
|
57,350 |
|
Share-based compensation - RSU share-based compensation expense |
|
— |
|
|
4,088 |
|
|
4,088 |
|
Transaction-related expenses(1) |
|
3,079 |
|
|
11,267 |
|
|
14,346 |
|
Other(2) |
|
— |
|
|
9 |
|
|
9 |
|
Capital Expenditures |
|
(835 |
) |
|
(1,169 |
) |
|
(2,004 |
) |
Free Cash Flow |
$ |
4,451 |
|
$ |
22,214 |
|
$ |
26,665 |
|
Free Cash Flow Margin |
|
19.3 |
% |
|
53.5 |
% |
|
41.3 |
% |
Free cash Flow Conversion |
|
16.2 |
% |
|
74.5 |
% |
|
61.1 |
% |
(1) Transaction-related expenses consist of non-recurring professional services expenses, including banker fees, legal and professional fees and integration costs directly attributable to completed or contemplated transactions, including the IPO. We do not adjust for ongoing integration or optimization costs unless they are incremental, and directly attributable to the transaction. |
(2) Other consists of (gain) loss on sale of assets for the three and six months ended June 30, 2026. |
The following table sets forth a reconciliation of net income (loss) as determined in accordance with GAAP to Adjusted EBITDA and Normalized Adjusted EBITDA in for the periods indicated.
|
Three Months Ended March 31, |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|||
(in thousands) |
2026 |
|
2026 |
|
2026 |
|
|||
Net income (loss) |
$ |
3,363 |
|
$ |
(37,536 |
) |
$ |
(34,173 |
) |
Adjustments: |
|
— |
|
|
|
|
|
||
Depreciation and amortization |
|
4,591 |
|
|
10,275 |
|
|
14,866 |
|
Interest expense |
|
5,834 |
|
|
4,812 |
|
|
10,646 |
|
Income tax expense (benefit) |
|
230 |
|
|
(80 |
) |
|
150 |
|
EBITDA |
$ |
14,018 |
|
$ |
(22,529 |
) |
$ |
(8,511 |
) |
Gain on investment in sales-type lease |
|
(3,275 |
) |
|
— |
|
|
(3,275 |
) |
Gain on extinguishment of debt |
|
— |
|
|
(20,352 |
) |
|
(20,352 |
) |
Share-based compensation - IPO share-based compensation expense |
|
— |
|
|
57,350 |
|
|
57,350 |
|
Share-based compensation - RSU share-based compensation expense |
|
— |
|
|
4,088 |
|
|
4,088 |
|
Transaction-related expenses(1) |
|
3,079 |
|
|
11,267 |
|
|
14,346 |
|
Other(2) |
|
— |
|
|
9 |
|
|
9 |
|
Adjusted EBITDA |
$ |
13,822 |
|
$ |
29,833 |
|
$ |
43,655 |
|
Normalizing adjustments: |
|
|
|
|
|
|
|||
Double Eagle Royalty |
|
11,718 |
|
|
6,186 |
|
|
17,904 |
|
Shallow Valley Revenue |
|
5,166 |
|
|
2,485 |
|
|
7,651 |
|
Convert Hydrosource Revenue to Royalty |
|
(4,574 |
) |
|
(3,407 |
) |
|
(7,981 |
) |
Add Shallow Valley Costs |
|
(943 |
) |
|
(352 |
) |
|
(1,295 |
) |
Carve Out Hydrosource Costs |
|
3,766 |
|
|
2,111 |
|
|
5,877 |
|
Public Company G&A |
|
(1,410 |
) |
|
(611 |
) |
|
(2,021 |
) |
Normalized Adjusted EBITDA |
$ |
27,545 |
|
$ |
36,245 |
|
$ |
63,790 |
|
Net income (loss) margin |
|
14.6 |
% |
|
(90.4 |
)% |
|
(52.9 |
)% |
Adjusted EBITDA Margin |
|
59.9 |
% |
|
71.8 |
% |
|
67.6 |
% |
Normalized EBITDA Margin |
|
77.9 |
% |
|
77.5 |
% |
|
77.6 |
% |
(1) Transaction-related expenses consist of non-recurring professional services expenses, including banker fees, legal and professional fees and integration costs directly attributable to completed or contemplated transactions, including the IPO. We do not adjust for ongoing integration or optimization costs unless they are incremental, and directly attributable to the transaction. |
(2) Other consists of (gain) loss on sale of assets for the three and six months ended June 30, 2026. |
The following table sets forth a reconciliation of Revenue as determined in accordance with GAAP to Normalized Revenue for the periods indicated.
|
Three Months Ended March 31, |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|||
(in thousands) |
2026 |
|
2026 |
|
2026 |
|
|||
Reported revenue |
$ |
23,056 |
|
$ |
41,526 |
|
$ |
64,581 |
|
Normalizing adjustments: |
|
|
|
|
|
|
|||
Double Eagle Royalty |
|
11,718 |
|
|
6,186 |
|
|
17,904 |
|
Shallow Valley Revenue |
|
5,166 |
|
|
2,485 |
|
|
7,651 |
|
Convert Hydrosource Revenue to Royalty |
|
(4,574 |
) |
|
(3,407 |
) |
|
(7,981 |
) |
Normalized Revenue |
$ |
35,366 |
|
$ |
46,790 |
|
$ |
82,155 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260810714688/en/
Investor Contact:
Neal Shah
President and Chief Financial Officer
EagleRock Land, LLC
info@erok.com; (713) 280-7002
Source: EagleRock Land, LLC