Core Insights - The article emphasizes the importance of in-depth research on various income-generating investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] Group 1: Research and Analysis - iREIT on Alpha offers comprehensive research services aimed at providing insights into real estate investment trusts and other income alternatives [1] - Leo Nelissen is highlighted as an analyst focusing on significant economic developments, particularly in supply chains, infrastructure, and commodities, contributing to actionable investment ideas [2] Group 2: Analyst Disclosures - The article includes disclosures regarding beneficial long positions in specific shares, indicating the analyst's vested interest in TPL and LB [3] - It clarifies that the opinions expressed are those of the analyst and not influenced by compensation from external sources [3]

Core Insights - LandBridge Company LLC (NYSE:LB) experienced a significant share price decline of 27.52% from November 11 to November 18, 2025, ranking among the energy stocks that lost the most during that week [1] - The company reported mixed Q3 results on November 12, with earnings per share of $0.24 falling short of estimates by $0.27, while revenue increased by over 78% year-over-year to nearly $51 million, exceeding forecasts [3] - Adjusted EBITDA rose by 79% year-over-year, driven by surface and royalty earnings following a recent land acquisition [3] Company Actions - Following the Q3 report, Janney Montgomery Scott downgraded LandBridge from 'Buy' to 'Neutral', but raised its fair value estimate from $63 to $74 [4] - On November 14, LandBridge announced a public offering of 2.5 million Class A shares at $71 per share, with underwriters given a 30-day option to purchase an additional 375,000 shares [4]

Financial Performance - Revenue for Q3 2025 was $50.8 million, representing a 78% increase year-over-year and a 7% increase quarter-over-quarter[5]. - Net income for Q3 2025 was $20.3 million, with a net income margin of 40%[5][10]. - Adjusted EBITDA for Q3 2025 was $44.9 million, up 79% year-over-year and 6% quarter-over-quarter, with an adjusted EBITDA margin of 88%[5][10]. - Total revenues for Q3 2025 reached $50,831,000, a 78.5% increase from $28,487,000 in Q3 2024[29]. - Net income for Q3 2025 was $20,291,000, compared to a net loss of $2,756,000 in Q3 2024, marking a significant turnaround[29]. - Adjusted EBITDA for Q3 2025 was $44,850,000, with an Adjusted EBITDA Margin of 88%[36]. - Cash flows from operating activities for the nine months ended September 30, 2025, were $88,157,000, up from $40,708,000 in the same period of 2024[31]. - Year-over-year comparison shows significant improvement in free cash flow from $7,147,000 in Q3 2024 to $33,725,000 in Q3 2025[42]. Cash Flow and Liquidity - Cash flow from operating activities was $34.9 million, with free cash flow of $33.7 million for Q3 2025[13]. - Total liquidity was $108.3 million as of September 30, 2025, with $80.0 million available under the revolving credit facility[15]. - Cash and cash equivalents at the end of Q3 2025 were $28,316,000, down from $37,032,000 at the beginning of the period[31]. - Net cash provided by operating activities for Q3 2025 was $34,912,000, a decrease from $37,332,000 in Q2 2025[42]. - Free Cash Flow for Q3 2025 was $33,725,000, compared to $36,092,000 in Q2 2025[42]. - Operating cash flow margin for Q3 2025 was 69%, down from 79% in Q2 2025[42]. - Free Cash Flow Margin for Q3 2025 was 66%, a decrease from 76% in Q2 2025[42]. Acquisitions and Investments - The company acquired approximately 37,500 acres, increasing total holdings to over 300,000 surface acres, aimed at diversifying revenue streams[8]. - Acquisitions in Q3 2025 amounted to $5,000, while proceeds from the disposal of assets were $(85,000)[42]. - Net cash used in investing activities for Q3 2025 was $(1,107,000), compared to $(2,079,000) in Q2 2025[42]. Dividends and Outlook - The company declared a quarterly cash dividend of $0.10 per share, payable on December 18, 2025[17]. - The company reaffirms its fiscal year 2025 outlook, expecting adjusted EBITDA between $165 million and $175 million[18]. Asset and Debt Management - Total current assets increased to $57,370,000 as of September 30, 2025, compared to $53,315,000 at the end of 2024[30]. - Long-term debt decreased to $366,081,000 as of September 30, 2025, from $380,815,000 at the end of 2024[30]. - The company’s total assets increased to $1,077,920,000 as of September 30, 2025, compared to $1,032,479,000 at the end of 2024[30]. Revenue Streams - Surface use royalties and revenue generated $35.0 million in Q3 2025, a 2% increase sequentially[10]. - Oil and gas royalties generated $3.3 million in Q3 2025, a 22% sequential increase due to higher net royalty production[12]. - The company reported a significant increase in surface use royalties, totaling $8,235,000 in Q3 2025, compared to $4,227,000 in Q3 2024[29]. - Resource sales for the nine months ended September 30, 2025, amounted to $17,122,000, up from $11,908,000 in the same period of 2024[29]. Overall Financial Health - The company continues to focus on maintaining a strong cash flow despite fluctuations in operating activities[42]. - The overall financial health indicates a robust operational strategy, with a focus on cash generation and prudent investment[42].

HOUSTON--(BUSINESS WIRE)--LandBridge Company LLC (NYSE: LB) ("LandBridge†or the "Company") today announced the pricing of an underwritten public offering of 2,500,000 Class A shares representing limited liability company interests ("Class A shares†), at a price to the public of $71.00 per share, by LandBridge Holdings LLC (the "Selling Shareholder†). LandBridge will not sell any Class A shares in the offering and will not receive any proceeds therefrom. The Selling Shareholder granted the unde. ...

Nov 17, 2025 6:39 AM Eastern Standard Time LandBridge Announces Secondary Public Offering of Class A Shares Share HOUSTON--(BUSINESS WIRE)--LandBridge Company LLC (NYSE: LB) ("LandBridge†or the "Company†) today announced the commencement of an underwritten public offering of 2,500,000 Class A shares representing limited liability company interests ("Class A shares†) by LandBridge Holdings LLC (the "Selling Shareholder†). LandBridge will not sell any Class A shares in the offering and will not receive ...

Core Insights - The article emphasizes the significance of LandBridge Company LLC (LB) as a major investment, constituting 20% of the author's portfolio, and reflects broader bullish theses related to supply chains, infrastructure, and commodities [1]. Company Analysis - LandBridge Company LLC is highlighted as a key investment opportunity, aligning with major economic themes that are expected to drive growth in the sector [1]. Analyst Background - Leo Nelissen is identified as an analyst specializing in economic developments concerning supply chains, infrastructure, and commodities, contributing to iREIT®+HOYA Capital [1].

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $50.8 million, up 7% sequentially and 78% year-over-year [9] - Adjusted EBITDA for the quarter was $44.9 million, up 6% sequentially and 79% year-over-year, with a margin of 88% [9][10] - Cash flow from operations totaled $34.9 million, and free cash flow was $33.7 million [10] - Total liquidity stood at $108.3 million, including $28.3 million in cash and $80 million in available borrowing capacity [10] - Net leverage ratio improved to 2.1 times at the end of Q3 from 2.4 times in Q2 [10] Business Line Data and Key Metrics Changes - Surface use royalties and revenue increased by 2%, driven by higher commercial activity and new project easements [9] - Resource sales and royalties also rose by 2%, supported by a rebound in water sales [9] - Oil and gas royalties posted a 22% sequential increase, with net royalty production rising from 814 barrels of oil equivalent per day in Q2 to 912 in Q3 [9] Market Data and Key Metrics Changes - The company continues to unlock new opportunities across energy, infrastructure, and environmental sectors, creating diverse cash flow streams [5] - The acquisition of approximately 37,500 acres is expected to contribute approximately $20 million in EBITDA beginning in 2026 [6] Company Strategy and Development Direction - The growth strategy focuses on maximizing economic output from surface positions and delivering a differentiated value proposition through force-based offerings [4] - The company emphasizes responsible pore space management and avoids over-concentration of produced water handling assets [5] - The company is committed to maintaining a strong balance sheet and returning capital to shareholders through dividends and share repurchases [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential from the recent acquisition and ongoing commercial developments [14][56] - The company anticipates healthy growth in surface use royalties driven by increased produced water volumes from Waterbridge [56] - Management highlighted the critical need for pore space access and the expected shortfall in disposal capacity in the Delaware Basin, which positions the company favorably [50][66] Other Important Information - The company finalized the sale of a 3,000-acre solar energy project with a proposed generation capacity of up to 250 megawatts [5] - A quarterly dividend of $0.10 per share has been declared, payable on December 18, 2025 [11] Q&A Session Summary Question: Can you talk about the new acquisition and its expected EBITDA contribution? - Management conservatively expects $20 million of EBITDA from the acquisition in 2026, with potential for growth based on pore space capacity and infrastructure [14][17] Question: What visibility do you have on commercial agreements related to the acquisition? - Management indicated that discussions are already underway, with a three- to four-year timeline for significant growth in the southern portion of Loving County [26][27] Question: How do you see the power and data center projects evolving in West Texas? - Management noted that hyperscalers are now more engaged in package negotiations, indicating a shift from previous dynamics [36][38] Question: Can you provide details on the natural gas processing lease with One Oak? - Management explained that these deals typically involve upfront payments for long-term leases, with additional recurring revenue from associated infrastructure [42][43] Question: What are the drivers of growth in easement and surface-related revenues? - Management attributed growth to high demand for access to their surface and a healthy commercial backlog [65] Question: Is there a shift in royalty rates due to pore space constraints? - Management confirmed that while there hasn't been a significant shift in royalty rates recently, prudent operators are recognizing the importance of securing pore space [66][67]

Disclaimers Forward-Looking Statements The information in this presentation includes "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. All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, commercial opportunities, plans and objectives of mana ...

Core Insights - The article discusses the investment strategy focused on undervalued growth stocks and high-quality dividend growers, emphasizing the importance of sustained profitability over mere valuation [1]. Group 1: Investment Strategy - The investment approach prioritizes companies with strong margins, stable and expanding free cash flow, and high returns on invested capital as reliable drivers of returns [1]. - The author manages a portfolio on eToro, allowing others to follow real-time investment decisions, indicating a transparent investment strategy [1]. Group 2: Personal Investment Philosophy - The investment philosophy is rooted in ensuring financial freedom for the author's family, aiming for a balance where there are enough assets to allow for personal expression and choice in work [1].

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $50,831,000, up 78.4% from $28,487,000 in the same period of 2024[38]. - Net income attributable to LandBridge Company LLC for the three months ended September 30, 2025, was $8,107,000, compared to a net income of $2,656,000 in the same period of 2024, representing a 205.4% increase[38]. - Operating income for the nine months ended September 30, 2025, was $84,425,000, a significant improvement from an operating loss of $34,529,000 in the same period of 2024[38]. - Net income for the nine months ended September 30, 2025, was $54,225,000, compared to a net loss of $49,633,000 for the same period in 2024[44]. - Net income for Q3 2025 was $20.3 million, reflecting an 836% increase from Q3 2024[130]. - Adjusted EBITDA for Q3 2025 was $44.9 million, up 79% from the same quarter in 2024[130]. - Adjusted EBITDA increased by $60.8 million, or 93%, from $65.3 million in 2024 to $126.1 million in 2025, with an adjusted EBITDA margin of 89%[188]. Assets and Liabilities - Total current assets as of September 30, 2025, were $57,370,000, an increase from $53,315,000 as of December 31, 2024[36]. - Total assets increased to $1,077,920,000 as of September 30, 2025, compared to $1,032,479,000 as of December 31, 2024[36]. - The company reported a total shareholders' equity of $697,828,000 as of September 30, 2025, up from $637,071,000 as of December 31, 2024[36]. - The company’s long-term debt decreased to $366,081,000 as of September 30, 2025, from $380,815,000 as of December 31, 2024[36]. - Total debt as of September 30, 2025, was $370.223 million, a decrease from $385.496 million as of December 31, 2024[77]. Cash Flow - Cash flows from operating activities provided $88,157,000 in the nine months ended September 30, 2025, up from $40,708,000 in the prior year[44]. - Total cash and cash equivalents at the end of the period were $28,316,000, compared to $14,417,000 at the end of September 2024[44]. - Free Cash Flow for Q3 2025 was $33.7 million, marking a 372% increase from Q3 2024[130]. - Net cash provided by operating activities increased by $47.4 million, or 117%, from $40.7 million in 2024 to $88.2 million in 2025[195]. Shareholder Information - Class A shares outstanding increased to 25,337,028 as of September 30, 2025, from 23,255,419 as of December 31, 2024[36]. - The Company declared a dividend of $0.10 per Class A share, payable on December 18, 2025, to shareholders of record as of December 4, 2025[94]. - The total share-based compensation expense for the nine months ended September 30, 2025, was $33.6 million, compared to $84.2 million for the same period in 2024[95]. Acquisitions and Investments - The company acquired approximately 3,000 surface acres in Lea County, New Mexico, for $17.1 million on February 25, 2025[66]. - The Company acquired approximately 37,500 acres in Texas for $250.2 million, including $0.2 million in transaction costs[112]. - The company incurred $18.8 million in acquisition-related capital expenditures for the nine months ended September 30, 2025, compared to $431.3 million for the same period in 2024[199]. Revenue Sources - The company primarily generates revenue from surface acreage usage, resource sales, and oil and natural gas royalties[48]. - Surface use royalties and revenues accounted for $18,387 million (36.2%) in Q3 2025, compared to $9,854 million (34.6%) in Q3 2024, indicating a year-over-year increase of 86.5%[138]. - Resource sales reached $5,232 million (10.3%) in Q3 2025, up from $4,931 million (17.3%) in Q3 2024, reflecting a growth of 6.1%[138]. Operational Efficiency - The company expects continued growth in revenues and profitability driven by increased resource sales and operational efficiencies in the upcoming quarters[38]. - General and administrative expenses decreased by $6.3 million, or 28%, primarily due to lower employee-related expenses and a reduction in share-based compensation[169]. - The company expects fee-based revenues to grow over time relative to oil and gas royalties, which are subject to market price fluctuations[138]. Compliance and Governance - The company completed its IPO on July 1, 2024, and is governed by its First Amended & Restated Limited Liability Company Agreement[46]. - The company is assessing the impact of new accounting standards issued by the FASB on its financial statements and disclosures[64][65]. - The company has filed certifications from both the Chief Executive Officer and Chief Financial Officer in compliance with the Sarbanes-Oxley Act of 2002[229].