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, with a strategy to actively manage land for energy, industrial, and renewable uses.

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

• Minimal capital requirements as customers bear most development costs; expanding into solar, data centers, and waste facilities.

• Strategic partnerships with WaterBridge (water midstream) and Desert Environmental (waste), leveraging shared management and sponsor Five Point.

Financial performance and metrics

• Pro forma 2023 revenues: $92.9M; net income: $51.5M; Adjusted EBITDA: $82.4M; Free Cash Flow: $50.3M.

• 2023 revenue breakdown: 43% surface use royalties, 35% resource sales, 22% oil and gas royalties.

• 2023 pro forma revenue up 79% from 2022; Free Cash Flow margin at 69% for 2023.

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

Use of proceeds and capital allocation

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

• OpCo will use proceeds to repay $100M of credit facility debt and distribute ~$171.2M to LandBridge Holdings.

• Targeting a net leverage ratio of ~2.5x post-offering.