EagleRock Land, LLC Fly Like an Eagle; Capital-Light Permian Platform Soars With Growth; Initiating at OW

研报英文原文证据摘录

EagleRock Land, LLC Fly Like an Eagle; Capital-Light Permian Platform Soars With Growth; Initiating at OW

J P M O R G A N North America Equity Research

08 June 2026

Initiation

EagleRock Land, LLC Overweight

EROK, EROK US

Fly Like an Eagle; Capital-Light Permian Platform Soars Price (05 Jun 26):$21.37

With Growth; Initiating at OW Price Target (Dec-26):$25.00

We initiate coverage of EagleRock Land, LLC (EROK) with an Overweight rating North American Midstream

ACand December 2026 price target of $25, weighing differentiated growth within a Eli Jossen, CFA

capital-light, Permian-centric land management platform. EROK’s royalty-driven (1-212) 622-4113

business model features customers and operating partners bearing the bulk of eli.jossen@jpmchase.com

capital spend, thereby driving strong FCF conversion metrics. Newly formed Jeremy Tonet, CFA

platform integrations drive immediate synergy capture, while also carrying (1-212) 622-4915

valuable minimum royalty commitment floors. EROK’s footprint spans the jeremy.b.tonet@jpmorgan.com

Permian, where a strong Delaware Basin presence offers water recycling Vrathan Reddy

opportunities, future AGI (acid gas injection) pore space utilization, and beneficial (1-212) 622-4692

vrathan.reddy@jpmchase.com

reuse solutions. Midland Basin operations capitalize on SWD (saltwater disposal)

Francina Kolluriroyalties and produced water handling in a low-seismicity, regulatory-advantaged

(1-212) 270-5796

environment. With no pro-forma debt and strong FCF conversion, we expect a francina.kolluri@jpmchase.com

series of disciplined acquisitions at accretive multiples, with EROK’s active land J.P. Morgan Securities LLC

management approach further commercializing newly acquired acreage. Overall,