EagleRock Land LLC: Grounded in abundance; Initiating coverage

Research evidence excerpt

EagleRock Land LLC: Grounded in abundance; Initiating coverage

m Double Eagle, EROK will be able to

substitute third-party water with supply from its own acreage. Near-term lay-flat connections

will also enable incremental brackish water earnings, while longer-term produced water

integration will unlock recycling and disposal opportunities. In 2027, EROK expects ~$10mm-

$15mm in near-term synergies, which will step up to a cumulative ~$12mm-$17mm in 2028+.

• Stable cash flows are anchored by a well-capitalized, diverse customer base with

outsized activity on EROK acreage. As of 2025, key customers include Chevron,

ConocoPhillips, Devon, Diamondback, Double Eagle, EOG, ExxonMobil, Matador, Occidental,

and Permian Resources, representing a large, credit-worthy customer base able to withstand

macro volatility. Among EROK’s top six Delaware Basin customers, approximately ~21% of

wells drilled in 2025 were located on EROK acreage, despite representing only ~7% of their

total Delaware land position, highlighting the concentration of activity on EROK’s core

footprint.

• Strategic sponsor advantage supports the sourcing and development of incremental

land positions. EROK's sponsor, Double Eagle, is one of the most prolific private upstream

business developers in the Permian. Since 2014, it has sold multiple assets totaling $13bn+ to

public companies, including Pioneer Natural Resources and Diamondback Energy. EROK's

strategic relationship with Double Eagle therefore enhances visibility into early-stage

opportunities and accelerates the flow of new operating projects.

• Surface footprint is strategically positioned for data center siting and other non-oil and

gas uses. EROK’s power-adjacent land has exposure to major transmission corridors (e.g.,