EROK — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-13

• In the IPO, we issued 17,300,000 Class A shares at a price to the public of $18.50 per Class A share. In addition, we granted the underwriters a 30-day option to purchase up to an additional 2,595,000 Class A shares at the public offering price, less underwriting discounts and commissions, which the…

• We received net proceeds from the IPO, including the underwriters’ option, of approximately $334.2 million, net of underwriting discounts and offering expenses. We contributed all of the net proceeds from the IPO to OpCo in exchange for newly issued OpCo Units at a per-unit price equal to the per-sh…

• owns all of the outstanding membership interests in our operating subsidiaries and operates our assets through these various subsidiaries.

• Concurrently with the closing of the IPO, the following transactions (the “Corporate Reorganization”) occurred, in substantially the following order:

• Each of the Predecessor, the existing owners of the Shallow Valley Ranch (the “Shallow Valley Owners”) and Double Eagle IV Midco, LLC (“Double Eagle” and collectively, with the Predecessor and the Shallow Valley Owners, the “Existing Owners”) contributed cash to us in exchange for a total of 109,724…

Text removed vs the prior filing · source: 10-Q · 2026-06-23

• Over the last several years, the global economy and the oil and natural gas industry have experienced considerable volatility driven by a range of macroeconomic and geopolitical factors. Global conflicts, ongoing ambiguity surrounding tariffs and international trade policies, domestic political deve…

• These conditions, combined with the war in the Middle East involving the U.S., Israel and Iran, as well as other Middle Eastern countries, the situation in Venezuela, OPEC+ actions and evolving global supply-demand fundamentals, have driven increased volatility in commodity prices. From December 31,…

• Despite the significant volatility in the global oil market, we believe the outlook for energy and infrastructure development, particularly in the Permian Basin, remains favorable. The focus on energy independence is promoting continued activity in the U.S., which is expected to drive significant in…

• approvals and reduced barriers to resource development, may further support investment and operational activity in the basin. At the same time, federal incentives for alternative and renewable energy technologies may accelerate the broader energy transition. Many of these emerging energy initiatives…

• Significant financial and operating highlights of the Predecessor for the first quarter ended March 31, 2026 and 2025 include:

Text added vs the prior filing · source: 10-Q · 2026-08-13

• As of June 30, 2026, the Henry Hub spot price of natural gas was $3.34 per MMBtu and the WTI posted price was $70.56 per barrel.

• Declines in commodity prices can reduce our revenues because they may reduce customer activity levels by limiting the volumes of oil and natural gas that our customers can economically produce or service. We expect these markets to remain volatile, and a substantial or prolonged decline in commodity…

• As of June 30, 2026, we had no outstanding borrowings under the Credit Facility. We do not currently have, and do not plan to enter into, any derivative instruments to hedge against fluctuations in interest rates applicable to any future outstanding debt. See ”Credit Facility.”

Text removed vs the prior filing · source: 10-Q · 2026-06-23

• As of March 31, 2026, the Henry Hub spot price of natural gas was $2.88 per MMBtu and the WTI posted price was $102.86 per barrel. Declines in commodity prices can reduce our revenues because they may reduce customer activity levels by limiting the volumes of oil and natural gas that our customers c…

• As of March 31, 2026, we had $263.3 million of total outstanding borrowings, consisting of $7.0 million in revolving credit borrowings and $256.3 million in term loan borrowings and excluding $32.6 million of unamortized premium. The weighted average interest rate on these borrowings was 12.48% for …

Text added vs the prior filing · source: 10-Q · 2026-08-13

• timely decisions regarding required disclosure. Based on such evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were not effective as of June 30, 2026 due to the material weakness in our internal control over financ…

• Our management identified material weaknesses in the Predecessor’s internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement o…

• In response to the identified material weaknesses, our management has implemented and is continuing to enhance our internal control over financial reporting. Our remediation plan includes: (i) recruiting additional qualified financial reporting and accounting personnel following the completion of th…

Text removed vs the prior filing · source: 10-Q · 2026-06-23

• Our management identified material weaknesses in the Predecessor’s internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a

• material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Specifically, such material weaknesses relate to: (a) insufficient segregation of duties in the financial statement reporting and general information technology processes; (b) a l…

• In response to the identified material weaknesses, our management has implemented and is continuing to enhance our internal control over financial reporting. Our remediation plan includes: (i) recruiting additional qualified financial reporting and accounting personnel following the completion of th…

Text added vs the prior filing · source: 10-Q · 2026-08-13

• Securities Trading Plans of Directors and Executive Officers.

• During the three months ended June 30, 2026, none of our officers (as defined in Rule 16a-1(f) under the Exchange Act) or directors adopted or terminated a “Rule 10b5‑1 trading arrangement” or “non‑Rule 10b5‑1 trading arrangement,” as each term is defined in Item 408(c) of Regulation S‑K.

• Disclosure in Lieu of Reporting on a Current Report on Form 8-K.

Text removed vs the prior filing · source: 10-Q · 2026-06-23

• During the three months ended March 31, 2026, none of our officers (as defined in Rule 16a-1(f) under the Exchange Act) or directors adopted or terminated a “Rule 10b5‑1 trading arrangement” or “non‑Rule 10b5‑1 trading arrangement,” as each term is defined in Item 408(c) of Regulation S‑K.