MIDLAND: EagleRock Land, LLC, a surface land management company with a significant footprint in the Permian Basin, has acquired the Intrepid Ranch, a 50,000-surface-acre property in Lea County, New Mexico, from Hydrosource Logistics LLC for $78.2 million, the company announced.
The acquisition, funded through cash on hand and borrowings under EagleRock’s existing revolving credit facility, bolsters the company’s liquidity position and financial flexibility. The ranch is directly adjacent to EagleRock’s current surface holdings in New Mexico and includes approximately 22,000 fee acres, a 60% increase to the company’s existing fee acreage in the state.
EagleRock plans to implement its active management strategy on the newly acquired acreage, which includes renegotiating surface use agreements, optimizing water infrastructure and rights, and pursuing royalty opportunities such as sand development. The property currently produces several million barrels per year of commercial water rights, features millions of barrels of above-ground storage capacity, multiple saltwater disposal wells, active caliche pits and permitted sand mines.
The ranch sits within a corridor of the Delaware Basin developed by leading operators, underscoring the strategic demand for the surrounding acreage. Its proximity to expanding urban development also positions EagleRock to pursue non-oil and gas commercial ventures, including power generation and transmission, further diversifying revenue potential.
“We look for assets that are worth more inside the EagleRock platform than individually, and the Intrepid Ranch clearly fits that standard,” said Greg Pipkin, Chief Executive Officer of EagleRock. “It creates a contiguous corridor from the state line through the heart of Lea County and our existing New Mexico acreage. We expect to continue to execute our strategy to grow the portfolio, organically and through disciplined, accretive M&A that strengthens the business for our shareholders.”
The acquisition marks EagleRock’s first major deal since its initial public offering in May and aligns with the adjacent growth strategy outlined to investors at that time, according to Neal Shah, President and CFO of EagleRock.
“We believe the Acquisition represents an attractive entry valuation with significant upside and multiple avenues to grow asset-level revenue and EBITDA, further enhancing the economics of the acquisition,” Shah said.
The transaction received unanimous approval from a committee of independent members of EagleRock’s board of directors. Raymond James served as financial advisor and Gibson, Dunn & Crutcher LLP acted as legal advisor to the committee. Vinson & Elkins L.L.P. advised EagleRock, while Jackson Walker LLP represented Hydrosource Logistics LLC.
About EagleRock
EagleRock (NYSE: EROK) is a land management company that owns or controls approximately 286,000 acres in the core of the Delaware and Midland sub-basins within the Permian Basin. The company also holds an interest in up to approximately 70,000 acres through an acreage dedication tied to its Midland Basin water infrastructure assets. Its holdings support oil and natural gas development as well as emerging industries, including power and infrastructure, in the Permian Basin.
