LandBridge Company LLC Announces Second Quarter 2025 Results
Delivered Q2 revenue growth of
Achieved quarterly record
New commercial agreements and growing momentum of active land management strategy
Declared quarterly cash dividend of
Second Quarter 2025 Financial Highlights
-
Revenues of
$47.5 million 83% year-over-year and8% quarter-over-quarter -
Net income of
$18.5 million -
Net income margin of
39% (1) -
Adjusted EBITDA(2) of
$42.5 million 81% year-over-year and9% quarter-over-quarter -
Adjusted EBITDA Margin(2) of
89% -
Cash flows from operating activities of
$37.3 million -
Free Cash Flow(2) of
$36.1 million -
Operating cash flow margin of
79% -
Free Cash Flow Margin(2) of
76%
(1) 2Q25 net income and net income margin include a non-cash expense of |
||
(2) Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are non-GAAP financial measures. See “Comparison of Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP. |
Recent Milestones
- Executed a 10-year surface use and pore space reservation agreement with Devon Energy, pursuant to which Devon secured 300,000 bpd of pore space capacity on East Stateline Ranch and Speed Ranch. The pore space reservation will commence in the second quarter of 2027 and includes an obligation for Devon to deliver at least 175,000 bpd of produced water via a minimum volume commitment. This agreement reflects our commitment to provide sustainable, differentiated pore space solutions.
- Executed a lease option agreement with a leading independent power producer for the development, construction, and operation of a grid-connected, natural gas-fired combined cycle gas turbine (CCGT) plant to service future potential co-located data center load. We anticipate providing further details on the project's anticipated nameplate capacity, project timeline, and key milestones in a forthcoming joint press release.
-
Entered into a strategic partnership with a vertically integrated generation and power solutions provider to accelerate the deployment of scalable energy infrastructure in
West Texas . We believe this partnership strengthens our platform by aligning our land position with a proven energy partner capable of delivering low-cost, long-term power under power purchase agreements. The collaboration is expected to support energy-intensive customers, including data centers, and enhance the value of our assets.
Jason Long, Chief Executive Officer of LandBridge, stated, “We are proud of our performance over the first half of this year, and look forward to carrying this momentum throughout the rest of 2025. Over the past year since our July 2024 IPO, we have realized strong growth, established and deepened relationships with our customers, and grown our fee-based revenue mix. LandBridge is well positioned to continue delivering compelling results for our shareholders across our 277,000 surface acres in the heart of the Permian Basin. Specifically, LandBridge's differentiated pore space solution enhances long-term asset value by enabling scalable, distributed water management solutions that align with the
Scott McNeely, Chief Financial Officer of LandBridge, said, “LandBridge is executing on a highly diversified and low capex business model, resulting in high EBITDA and cash flow margins. We have only just begun to capitalize on the potential of our surface acreage and we continue to evaluate highly attractive opportunities to increase revenue across industrial uses.”
Second Quarter 2025 Consolidated Financial Information
Revenue for the second quarter of 2025 was
Adjusted EBITDA was
Net income margin was
Diversified Revenue Streams
Surface Use Royalties and Revenue: Generated revenues of
Resources Sales and Royalties: Generated revenues of
Oil and Gas Royalties: Generated revenues of
Free Cash Flow Generation
Cash flow from operations for the second quarter of 2025 was
Capital expenditures for the second quarter of 2025 were
Net cash used in financing activities during the second quarter of 2025 consisted of approximately
Strong Balance Sheet with Ample Liquidity
Total liquidity was
As of June 30, 2025, the Company had approximately
Total cash and cash equivalents were
Second Quarter 2025 Dividend
The LandBridge Board of Directors declared a dividend on our Class A shares of
Outlook
The Company provides the following updated financial outlook for fiscal year 2025:
In anticipation of the execution of the DBR Solar opportunity with a large public renewable energy developer and operator, we are adjusting our guidance for fiscal year 2025 to an Adjusted EBITDA range between
Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability of estimating certain items, particularly non-recurring gains or losses, unusual or non-recurring items, income tax benefit or expense, or one-time transaction costs and cost of revenue. We are unable to reasonably predict these because they are uncertain and depend on various factors not yet known, which could have a material impact on GAAP results for the guidance period. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.
Quarterly Report on Form 10-Q
Our financial statements and related footnotes are available in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, which was filed with the
Conference Call and Webcast Information
The Company will hold a conference call on Thursday, August 7, 2025, at 8:00 a.m. Central Time to discuss second quarter results. A live webcast of the conference call will be available on the Events and Presentations section of the LandBridge Investor Relations website at https://ir.landbridgeco.com/events-and-presentations/default.aspx. To listen to the live broadcast, go to the site at least 10-15 minutes prior to the scheduled start time to register and install any necessary audio software.
To access the live conference call, participants must pre-register online at https://registrations.events/direct/Q4I34779813 to receive unique dial-in information. Pre-registration may be completed at any time up to the call start time. An audio replay will be available following the conclusion of the call and remain available through August 21, 2025. The replay can be accessed by registering online at https://registrations.events/direct/Q4I34779813.
About LandBridge
LandBridge owns approximately 277,000 surface acres across
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on LandBridge’s beliefs, as well as assumptions made by, and information currently available to, LandBridge, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,” “expect” and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts, including our estimated future financial performance. You should not place undue reliance on forward-looking statements. Although LandBridge believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, LandBridge may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may vary materially and adversely from those envisaged in this news release due to a number of factors including, but not limited to: our customers’ demand for and use of our land and resources; the success of our affiliates, including WaterBridge, in executing their business strategies, including their ability to construct infrastructure, attract customers and operate successfully on our land; our customers’ ability to develop our land or any potential acquired acreage to accommodate any future surface use developments, such as the sites under contract or negotiation for the CCGT Plant, the data center lease development agreement and the DBR Solar opportunity; our ability to continue the payment of dividends; the domestic and foreign supply of, and demand for, energy sources, including the impact of political instability or armed conflict in oil and natural gas producing regions, including the
The historical financial information presented below reflects only our historical financial results and the historical financial results of our predecessor, DBR Land Holdings LLC, as applicable.
SECOND QUARTER 2025 RESULTS
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands) (unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Surface use royalties |
|
$ |
9,019 |
|
|
$ |
3,304 |
|
|
$ |
19,540 |
|
|
$ |
4,902 |
|
Surface use royalties - Related party |
|
|
7,676 |
|
|
|
3,667 |
|
|
|
14,591 |
|
|
|
6,275 |
|
Easements and other surface-related revenues |
|
|
14,271 |
|
|
|
5,088 |
|
|
|
20,711 |
|
|
|
9,842 |
|
Easements and other surface-related revenues - Related party |
|
|
3,248 |
|
|
|
2,376 |
|
|
|
5,581 |
|
|
|
2,759 |
|
Resource sales |
|
|
5,456 |
|
|
|
3,618 |
|
|
|
12,622 |
|
|
|
7,034 |
|
Resource sales - Related party |
|
|
181 |
|
|
|
179 |
|
|
|
367 |
|
|
|
272 |
|
Resource royalties |
|
|
3,841 |
|
|
|
2,139 |
|
|
|
7,999 |
|
|
|
4,117 |
|
Resource royalties - Related party |
|
|
1,107 |
|
|
|
1,107 |
|
|
|
3,953 |
|
|
|
1,107 |
|
Oil and gas royalties |
|
|
2,734 |
|
|
|
4,475 |
|
|
|
6,120 |
|
|
|
8,660 |
|
Total revenues |
|
|
47,533 |
|
|
|
25,953 |
|
|
|
91,484 |
|
|
|
44,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Resource sales-related expense |
|
|
489 |
|
|
|
643 |
|
|
|
947 |
|
|
|
1,316 |
|
Other operating and maintenance expense |
|
|
1,065 |
|
|
|
611 |
|
|
|
2,189 |
|
|
|
1,129 |
|
General and administrative expense |
|
|
14,800 |
|
|
|
73,823 |
|
|
|
29,492 |
|
|
|
75,983 |
|
Depreciation, depletion, amortization and accretion |
|
|
2,545 |
|
|
|
2,112 |
|
|
|
5,146 |
|
|
|
4,256 |
|
Other operating expense, net |
|
|
132 |
|
|
|
- |
|
|
|
171 |
|
|
|
- |
|
Operating income (loss) |
|
|
28,502 |
|
|
|
(51,236 |
) |
|
|
53,539 |
|
|
|
(37,716 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
7,879 |
|
|
|
6,280 |
|
|
|
15,856 |
|
|
|
9,164 |
|
Other income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(241 |
) |
Income (loss) from operations before taxes |
|
|
20,623 |
|
|
|
(57,516 |
) |
|
|
37,683 |
|
|
|
(46,639 |
) |
Income tax expense |
|
|
2,148 |
|
|
|
137 |
|
|
|
3,749 |
|
|
|
238 |
|
Net income (loss) |
|
$ |
18,475 |
|
|
$ |
(57,653 |
) |
|
$ |
33,934 |
|
|
$ |
(46,877 |
) |
Net income attributable to noncontrolling interest |
|
|
10,973 |
|
|
|
|
|
|
19,968 |
|
|
|
|
||
Net income attributable to LandBridge Company LLC |
|
$ |
7,502 |
|
|
|
|
|
$ |
13,966 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
||||||||
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
20,345 |
|
|
$ |
37,032 |
|
Accounts receivable, net |
|
|
17,881 |
|
|
|
12,544 |
|
Related party accounts receivable |
|
|
2,702 |
|
|
|
2,111 |
|
Prepaid expenses and other current assets |
|
|
3,212 |
|
|
|
1,628 |
|
Total current assets |
|
|
44,140 |
|
|
|
53,315 |
|
|
|
|
|
|
|
|
||
Non-current assets: |
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
918,312 |
|
|
|
902,742 |
|
Intangible assets, net |
|
|
42,985 |
|
|
|
45,265 |
|
Deferred tax assets |
|
|
58,548 |
|
|
|
29,416 |
|
Other assets |
|
|
2,395 |
|
|
|
1,741 |
|
Total non-current assets |
|
|
1,022,240 |
|
|
|
979,164 |
|
Total assets |
|
$ |
1,066,380 |
|
|
$ |
1,032,479 |
|
|
|
|
|
|
|
|
||
Liabilities and equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
510 |
|
|
$ |
489 |
|
Taxes payable |
|
|
455 |
|
|
|
2,286 |
|
Related party accounts payable |
|
|
782 |
|
|
|
686 |
|
Accrued liabilities |
|
|
6,280 |
|
|
|
7,185 |
|
Current portion of long-term debt |
|
|
171 |
|
|
|
424 |
|
Deferred revenue |
|
|
1,059 |
|
|
|
1,221 |
|
Other current liabilities |
|
|
1,104 |
|
|
|
2,119 |
|
Total current liabilities |
|
|
10,361 |
|
|
|
14,410 |
|
|
|
|
|
|
|
|
||
Non-current liabilities: |
|
|
|
|
|
|
||
Long-term debt, net of debt issuance costs |
|
|
370,872 |
|
|
|
380,815 |
|
Other long-term liabilities |
|
|
182 |
|
|
|
183 |
|
Total non-current liabilities |
|
|
371,054 |
|
|
|
380,998 |
|
Total liabilities |
|
|
381,415 |
|
|
|
395,408 |
|
|
|
|
|
|
|
|
||
Class A shares, unlimited shares authorized and 25,155,419 shares issued and outstanding as of June 30, 2025. Unlimited shares authorized and 23,255,419 shares issued and outstanding as of December 31, 2024 |
|
|
254,022 |
|
|
|
208,427 |
|
Class B shares, unlimited shares authorized and 51,213,492 shares issued and outstanding as of June 30, 2025. Unlimited shares authorized and 53,227,852 shares issued and outstanding as of December 31, 2024 |
|
|
- |
|
|
|
- |
|
Retained earnings |
|
|
12,426 |
|
|
|
3,349 |
|
Total shareholders’ equity attributable to LandBridge Company LLC |
|
|
266,448 |
|
|
|
211,776 |
|
Noncontrolling interest |
|
|
418,517 |
|
|
|
425,295 |
|
Total shareholders’ equity |
|
|
684,965 |
|
|
|
637,071 |
|
Total liabilities and equity |
|
$ |
1,066,380 |
|
|
$ |
1,032,479 |
|
|
|
|
|
|
|
|
||
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
||||||||
|
|
Six Months Ended June 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
33,934 |
|
|
$ |
(46,877 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation, depletion, amortization and accretion |
|
|
5,146 |
|
|
|
4,256 |
|
Amortization of debt issuance costs |
|
|
1,079 |
|
|
|
723 |
|
Share-based compensation |
|
|
22,411 |
|
|
|
72,572 |
|
Deferred income tax expense |
|
|
991 |
|
|
|
- |
|
Other |
|
|
6 |
|
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(5,342 |
) |
|
|
136 |
|
Related party accounts receivable |
|
|
(591 |
) |
|
|
(1,825 |
) |
Prepaid expenses and other assets |
|
|
(1,778 |
) |
|
|
482 |
|
Accounts payable |
|
|
(42 |
) |
|
|
(6 |
) |
Related party accounts payable |
|
|
96 |
|
|
|
33 |
|
Deferred revenue |
|
|
(162 |
) |
|
|
523 |
|
Accrued liabilities and other liabilities |
|
|
(672 |
) |
|
|
3,393 |
|
Taxes payable |
|
|
(1,831 |
) |
|
|
(152 |
) |
Net cash provided by operating activities |
|
|
53,245 |
|
|
|
33,258 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
|
||
Acquisitions |
|
|
(18,762 |
) |
|
|
(430,510 |
) |
Capital expenditures |
|
|
(1,309 |
) |
|
|
(458 |
) |
Proceeds from disposal of assets |
|
|
125 |
|
|
|
- |
|
Net cash used in investing activities |
|
|
(19,946 |
) |
|
|
(430,968 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities |
|
|
|
|
|
|
||
Contributions from member |
|
|
- |
|
|
|
120,000 |
|
Dividends, dividend equivalents, and distributions paid |
|
|
(37,923 |
) |
|
|
- |
|
Proceeds from term loan |
|
|
- |
|
|
|
265,000 |
|
Repayments on term loan |
|
|
(5,750 |
) |
|
|
(10,000 |
) |
Proceeds from revolver |
|
|
10,000 |
|
|
|
15,000 |
|
Repayments on revolver |
|
|
(15,000 |
) |
|
|
- |
|
Debt issuance costs |
|
|
(40 |
) |
|
|
(3,404 |
) |
Offering costs |
|
|
(977 |
) |
|
|
(1,831 |
) |
Other |
|
|
(296 |
) |
|
|
(232 |
) |
Net cash (used in) provided by financing activities |
|
|
(49,986 |
) |
|
|
384,533 |
|
Net decrease in cash and cash equivalents |
|
|
(16,687 |
) |
|
|
(13,177 |
) |
Cash and cash equivalents - beginning of period |
|
|
37,032 |
|
|
|
37,823 |
|
Cash and cash equivalents - end of period |
|
$ |
20,345 |
|
|
$ |
24,646 |
|
|
|
|
|
|
|
|
||
Comparison of Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are supplemental non-GAAP measures that we use to evaluate current, past and expected future performance. Although these non-GAAP financial measures are important factors in assessing our operating results and cash flows, they should not be considered in isolation or as a substitute for net income, gross margin or any other measures presented under GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin are used to assess the financial performance of our assets over the long term to generate sufficient cash to return capital to equity holders or service indebtedness. We define Adjusted EBITDA as net income (loss) before interest; taxes; depreciation, amortization, depletion and accretion; share-based compensation; non-recurring transaction-related expenses and other non-cash or non-recurring expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period, and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA and Adjusted EBITDA Margin because these amounts can vary substantially from company to company within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired.
The following table sets forth a reconciliation of net income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated.
|
|
Three Months Ended |
|||||||||||
|
|
June 30, 2025 |
|
|
March 31,2025 |
|
|
June 30, 2024 |
|
|
|||
|
|
(in thousands) (unaudited) |
|||||||||||
Net income (loss) |
|
$ |
18,475 |
|
|
$ |
15,459 |
|
|
$ |
(57,653 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||
Depreciation, depletion, amortization and accretion |
|
|
2,545 |
|
|
|
2,601 |
|
|
|
2,112 |
|
|
Interest expense, net |
|
|
7,879 |
|
|
|
7,977 |
|
|
|
6,280 |
|
|
Income tax expense |
|
|
2,148 |
|
|
|
1,601 |
|
|
|
137 |
|
|
EBITDA |
|
|
31,047 |
|
|
|
27,638 |
|
|
|
(49,124 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||
Share-based compensation - Incentive Units (1) |
|
|
9,044 |
|
|
|
8,945 |
|
|
|
71,762 |
|
|
Share-based compensation - RSUs |
|
|
2,227 |
|
|
|
2,195 |
|
|
|
- |
|
|
Transaction-related expenses (2) |
|
|
135 |
|
|
|
- |
|
|
|
774 |
|
|
Adjusted EBITDA |
|
$ |
42,453 |
|
|
$ |
38,778 |
|
|
$ |
23,412 |
|
|
Net income (loss) margin |
|
|
39 |
% |
|
|
35 |
% |
|
|
(222 |
%) |
|
Adjusted EBITDA Margin |
|
|
89 |
% |
|
|
88 |
% |
|
|
90 |
% |
|
(1) |
Share-based compensation – Incentive Units for the three months ended June 30, 2025, and March 31, 2025, consist only of Incentive Units. Share-based compensation – Incentive Units for the three months ended June 30, 2024, consists only of the NDB Incentive Units. NDB Incentive Units were liability awards resulting in periodic fair value remeasurement prior to the Division. Subsequent to the IPO, any actual cash expense associated with such Incentive Units is borne solely by LandBridge Holdings LLC and not the Company. Distributions attributable to Incentive Units are based on returns received by investors of LandBridge Holdings LLC once certain return thresholds have been met and are neither an obligation of the Company nor taken into consideration for distributions to investors in the Company. |
||
(2) |
Transaction-related expenses consist of non-capitalizable transaction costs associated with both completed or attempted acquisitions, debt amendments and entity structuring charges. |
||
Free Cash Flow and Free Cash Flow Margin are used to assess our ability to repay our indebtedness, return capital to our shareholders and fund potential acquisitions without access to external sources of financing for such purposes. We define Free Cash Flow as cash flow from operating activities less investment in capital expenditures. We define Free Cash Flow Margin as Free Cash Flow divided by total revenues.
We believe Free Cash Flow and Free Cash Flow Margin are useful because they allow for an effective evaluation of both our operating and financial performance, as well as the capital intensity of our business, and subsequently the ability of our operations to generate cash flow that is available to distribute to our shareholders, reduce leverage or support acquisition activities.
The following table sets forth a reconciliation of cash flows from operating activities determined in accordance with GAAP to Free Cash Flow and Free Cash Flow Margin, respectively, for the periods indicated.
|
|
Three Months Ended |
|||||||||||
|
|
June 30, 2025 |
|
|
March 31,2025 |
|
|
June 30, 2024 |
|
|
|||
|
|
(in thousands) (unaudited) |
|||||||||||
Net cash provided by operating activities |
|
$ |
37,332 |
|
|
$ |
15,913 |
|
|
$ |
16,043 |
|
|
Net cash used in investing activities |
|
|
(2,079 |
) |
|
|
(17,867 |
) |
|
|
(375,807 |
) |
|
Net cash provided by (used in) operating and investing activities |
|
|
35,253 |
|
|
|
(1,954 |
) |
|
|
(359,764 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||
Acquisitions |
|
|
944 |
|
|
|
17,818 |
|
|
|
375,438 |
|
|
Proceeds from disposal of assets |
|
|
(105 |
) |
|
|
(20 |
) |
|
|
- |
|
|
Free Cash Flow |
|
$ |
36,092 |
|
|
$ |
15,844 |
|
|
$ |
15,674 |
|
|
Operating cash flow margin (1) |
|
|
79 |
% |
|
|
36 |
% |
|
|
62 |
% |
|
Free Cash Flow Margin |
|
|
76 |
% |
|
|
36 |
% |
|
|
60 |
% |
|
(1) |
Operating cash flow margin is calculated by dividing net cash provided by operating activities by total revenue. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250806278694/en/
Scott McNeely
Chief Financial Officer
LandBridge Company LLC
Contact@LandBridgeco.com
Mae Herrington
Director, Investor Relations
LandBridge Company LLC
Contact@LandBridgeco.com
Media
Daniel Yunger / Nathaniel Shahan
Kekst CNC
daniel.yunger@kekstcnc.com / nathaniel.shahan@kekstcnc.com
Source: LandBridge Company LLC
