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.

• Business model emphasizes fee-based, recurring revenue with minimal capital outlay, as customers bear most development costs.

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

• Actively manages land to maximize value, targeting both hydrocarbon and energy transition opportunities (e.g., solar, data centers).

Financial performance and metrics

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

• Revenue breakdown (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).

• Significant revenue growth: 79% increase in pro forma revenue from 2022 to 2023.

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

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.

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

• Capital expenditures are minimal, as customers fund most infrastructure; major capital needs relate to land acquisitions.