LandBridge Company (LB) Registration Filing summary

Company overview and business model

• Owns ~220,000 surface acres in the Delaware Basin, a key U.S. oil and gas region, supporting energy, industrial, and renewable projects.

• Generates revenue from surface use royalties, resource sales (brackish water, sand), and oil/gas royalties, with a focus on fee-based, recurring contracts.

• Business model minimizes capital expenditures by having customers bear most development costs, enabling high free cash flow.

• Strategic partnerships with WaterBridge (water midstream) and Desert Environmental (waste management) drive growth and diversification.

• Actively manages land to expand uses beyond hydrocarbons, including solar, data centers, and power storage.

Financial performance and metrics

• 2023 pro forma revenues: $92.9M; net income: $51.5M; adjusted EBITDA: $82.4M; free cash flow: $50.3M.

• Revenue mix (2023 pro forma): 43% surface use royalties, 35% resource sales, 22% oil/gas royalties.

• Operating cash flow margin: 73%; free cash flow margin: 69% (2023 pro forma).

• As of March 31, 2024: $400.4M total debt (pro forma), $8.9M cash, $7.4M working capital deficit.

• Significant revenue growth driven by land acquisitions and new commercial agreements.

Use of proceeds and capital allocation

• IPO expected to raise $271.2M net (at $20.50/share), with all proceeds contributed to OpCo.

• Proceeds to be used to repay $100M of credit facility debt and distribute ~$171.2M to LandBridge Holdings.

• Additional proceeds from underwriter option would further increase distribution to LandBridge Holdings.

• Post-IPO, targets a net leverage ratio of ~2.5x and may pursue disciplined acquisitions or shareholder returns.