Price Volatility and Revenue Impact - The company reported a significant volatility in oil and natural gas prices, with the Henry Hub spot market price for natural gas ranging from $1.21 per MMBtu to $23.86 per MMBtu over the past five years, and WTI prices fluctuating between negative $36.98 per barrel and $123.64 per barrel[516]. - As of December 31, 2024, the Henry Hub spot market price of natural gas was $3.40 per MMBtu and the posted price for oil was $72.44 per barrel, indicating potential revenue impacts due to price fluctuations[516]. - The company does not currently intend to hedge its indirect exposure to commodity price risk, which may lead to unmitigated impacts from price volatility[517]. Customer Dependency and Revenue Concentration - For the year ended December 31, 2024, three customers accounted for 24%, 14%, and 10% of total revenues, highlighting a concentration risk in customer dependency[521]. Interest Rate Risk - The company is exposed to interest rate risk, with a weighted average interest rate of 8.39% for revolving credit borrowings and 8.47% for term loan borrowings as of December 31, 2024[61]. - The weighted average interest rate for revolving credit borrowings was 8.39%, while for term loan borrowings it was 8.47% for the twelve months ended December 31, 2024[523]. - A 1.0% increase or decrease in the weighted average interest rate would impact interest expense by $3.9 million per year, assuming no change in the amount outstanding[523]. - The company does not currently have or intend to enter into any derivative hedge contracts to protect against interest rate fluctuations[523]. Liquidity and Market Conditions - The company’s liquidity and ability to access capital markets are influenced by general market conditions, including inflation, tariffs, and potential economic recession[53]. Operational Stability and Future Growth - Future revenue growth is expected to be significantly derived from WaterBridge and Desert Environmental, making their operational stability critical[57]. - The company acknowledges that its operating history is limited, making investments in its Class A shares highly speculative[57]. Competitive Environment and Regulatory Risks - The company operates in a highly competitive environment, with risks associated with geographic concentration in the Permian Basin[57]. - The company faces risks related to environmental regulations and potential legal changes that could restrict drilling and production activities[58]. Debt and Borrowings - As of December 31, 2024, the company had $385.0 million of outstanding borrowings, including $30.0 million in revolving credit and $355.0 million in term loans[523].

Revenue Growth - Q4 2024 revenue reached $36.5 million, a 109% increase year-over-year[4] - Fiscal Year 2024 revenue totaled $110.0 million, reflecting a 51% year-over-year growth[9] - Total revenues for Q4 2024 reached $36,499 million, a significant increase of 109% compared to $17,457 million in Q4 2023[29] Net Income and Loss - The company reported a net income of $8.2 million in Q4 2024, resulting in a net income margin of 22%[4][12] - Net income for Q4 2024 was $8,154 million, compared to $2,522 million in Q4 2023, reflecting a year-over-year increase of 223%[29] - The company reported a net loss of $41,479 million for the year ended December 31, 2024, compared to a net income of $63,172 million in 2023[32] - For the year ended December 31, 2024, the net loss was $41,479,000 compared to a net income of $63,172,000 for the year ended December 31, 2023[38] EBITDA Performance - Adjusted EBITDA for Q4 2024 was $31.7 million, up 108% year-over-year, with an Adjusted EBITDA margin of 87%[4][12] - Adjusted EBITDA for the year ended December 31, 2024, was $97,069,000, representing a margin of 88%, compared to $62,804,000 and a margin of 86% for the previous year[38] - The company’s adjusted EBITDA for the three months ended December 31, 2024, was $31,739,000, compared to $25,012,000 for the three months ended December 31, 2023[38] Cash Flow and Liquidity - Cash flow from operations in Q4 2024 was $26.9 million, with Free Cash Flow of $26.7 million[15] - Total cash and cash equivalents increased to $37.0 million as of December 31, 2024, up from $14.4 million at the end of Q3 2024[17] - Cash flows from operating activities for the year ended December 31, 2024, were $67,636 million, an increase from $53,042 million in 2023[32] - Free Cash Flow for the year ended December 31, 2024, was $66,651,000, with a Free Cash Flow Margin of 61%, compared to $50,259,000 and a margin of 69% for the previous year[44] - Net cash provided by operating activities for the year ended December 31, 2024, was $67,636,000, an increase from $53,042,000 in the previous year[44] Strategic Acquisitions and Investments - The company acquired approximately 53,000 acres through acquisitions, including the Wolf Bone Ranch, which guarantees $25 million in annual revenue for five years[9] - The company incurred $723,367 million in acquisitions during the year, indicating a strategic expansion effort[32] - The company incurred $724,352,000 in net cash used in investing activities for the year ended December 31, 2024, compared to $2,772,000 in the previous year[44] Operating Performance - Operating income for Q4 2024 was $18,019 million, up from $5,424 million in Q4 2023, indicating a growth of 232%[29] - Surface use economic efficiency improved from $724 per acre to $1,018 per acre, a nearly 41% increase year-over-year[9] Future Outlook - For FY 2025, the company re-affirms an Adjusted EBITDA outlook of $170 million to $190 million[19] Financial Position - Total assets as of December 31, 2024, amounted to $1,003,474 million, a substantial rise from $288,949 million in 2023[31] - The company reported a total current liabilities of $14,410 million as of December 31, 2024, down from $27,100 million in 2023[31] - The company raised $278,263 million from the issuance of Class A shares during the IPO, contributing to its capital structure[32] Interest and Other Expenses - Interest expense for the year ended December 31, 2024, was $23,335,000, significantly higher than $7,016,000 for the previous year[38] - The company reported an EBITDA of $(7,394,000) for the year ended December 31, 2024, compared to $79,320,000 for the previous year[38]

Company Overview - Texas Pacific Land (TPL) operates an asset-light business model characterized by high margins and returns on capital, benefiting from the growing interest in the mineral-rich Permian Basin [1] Investment Philosophy - The investment approach focuses on identifying high-quality companies with competitive advantages that can exponentially compound cash flow while trading at fair prices. Key criteria include profitability, growth sector operation, high returns on capital, expanding margins, low debt, and management with vested interests [2] Analytical Approach - The analysis includes a deep dive into the company's business model, market dynamics, competition, financials, and management. Valuation measures such as multiples and discounted cash flow (DCF) analysis are applied to assess expected growth and provide a competitive advantage [2]

Company Overview - LandBridge (NYSE: LB) is a small-cap landowner company with a market capitalization of $5 billion, operating in the real estate sector [1] - The company actively manages land and resources to support oil and natural gas development [1] Management Profile - Mr. Mavroudis is a professional portfolio manager specializing in institutional and private portfolios, focusing on risk management and in-depth financial market analysis [1] - He has successfully navigated major crises, including the COVID-19 pandemic and the PSI [1] - Mr. Mavroudis is the CEO of FAST FINANCE Investment Services and holds multiple degrees in finance, law, and economics, graduating as valedictorian [1] Investment Strategy - The investment strategy involves restructuring portfolios based on prevailing market conditions and client needs, investing across various financial instruments globally [1] - The goal is to control risk while providing meaningful insights and fostering a community of investors [1]

Industry Overview - The energy sector has emerged as a market leader in 2025, surging nearly 10% year-to-date due to a renewed focus on domestic energy production and increased power demands from artificial intelligence infrastructure [1][2] - The AI boom has significantly driven energy demand, particularly benefiting natural gas producers and power generation companies [2] Company Highlights Talen Energy - Talen Energy operates a diverse fleet of power generation facilities, including nuclear, natural gas, and renewable assets, with a combined capacity of approximately 13,000 megawatts [5] - The company's nuclear fleet provides stable, carbon-free baseload power, which is increasingly valuable for data centers and AI infrastructure [6] - Talen's natural gas generation assets are capitalizing on the surge in demand for flexible power generation, and the company is investing in infrastructure modernization [7] - Talen Energy holds a Zacks Rank 1 (Strong Buy) rating, with earnings estimates rising by 5.46% in the last 60 days [8] LandBridge Company LLC - LandBridge specializes in natural gas transportation and storage, operating an extensive network of pipelines and storage facilities across key energy corridors in the U.S. [9] - The company generates stable, fee-based revenue from long-term contracts and is expanding its natural gas transportation capacity to meet growing industrial and power generation demands [10] - LandBridge has a Zacks Rank 1 (Strong Buy) rating, with current quarter earnings estimates rising by 9.4% and expected earnings growth of 62.63% over the next year [11] National Fuel Gas Company - National Fuel Gas operates across the entire natural gas value chain, including exploration, production, storage, and distribution, serving over 750,000 customers [15] - The company's integrated business model allows it to efficiently develop natural gas reserves while providing critical infrastructure services [16] - National Fuel Gas has a Zacks Rank 1 (Strong Buy) rating, with next quarter earnings estimates revised higher by 11.11% and next year's estimates climbing by 14.95% [18] Investment Considerations - All three companies—Talen Energy, LandBridge Company LLC, and National Fuel Gas Company—offer compelling exposure to the surging energy sector, supported by strong fundamentals and positive price momentum [20] - Their strategic positioning in natural gas and power generation makes them attractive beneficiaries of the AI infrastructure boom and supportive energy policies [21]

Group 1 - The article emphasizes the ongoing discussion around inflation, particularly the long-term perspective of "higher for longer" since the pandemic [1] - The author has a beneficial long position in shares of TPL, LB, ODFL, and REXR, indicating a vested interest in these companies [1] Group 2 - The article does not provide specific investment recommendations or advice, highlighting that past performance is not indicative of future results [2] - It clarifies that the views expressed may not represent the opinions of Seeking Alpha as a whole, and the analysts involved may not be licensed or certified [2]

Group 1 - The recent weeks have been turbulent due to a busy earnings season and the General Election in the United States [1] - The article emphasizes the importance of in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] Group 2 - The article includes a disclosure regarding the analyst's beneficial long position in shares of LB, UNP, and ODFL [1]

Financial Data and Key Metrics Changes - The company reported a 60% year-over-year revenue growth, reaching $28.5 million, and a 62% year-over-year adjusted EBITDA growth with an adjusted EBITDA margin of 88% [3][11] - Free cash flow was approximately $7.1 million, with a free cash flow margin of 25%, although there was a sequential decrease due to nonrecurring IPO-related expenses [12] - The company ended the quarter with total liquidity of $74.4 million, including $14.4 million in cash and cash equivalents [13] Business Line Data and Key Metrics Changes - Non-oil and gas royalty revenue streams accounted for 90% of overall revenues, up from 83% last quarter and 65% in the same quarter last year [4] - Revenue from surface use royalties and resource sales grew 14% sequentially, while oil and gas royalties declined 35% sequentially due to decreased net royalty production and average realized pricing [11] Market Data and Key Metrics Changes - The company is strategically positioned in West Texas, an area increasingly popular for renewable energy and digital infrastructure development, which is expected to drive future growth [5][6] - The company executed a lease development agreement for a data center across approximately 2,000 acres in Reeves County, Texas, which includes an $8 million nonrefundable deposit [7] Company Strategy and Development Direction - The company aims to diversify revenue streams and reduce exposure to commodity price fluctuations by increasing fee-based arrangements [3] - The focus remains on expanding land holdings and pursuing value-enhancing land acquisitions, with recent acquisitions in Winkler County, Texas, and Lea County, New Mexico [8][9] - The company introduced annual guidance, expecting $95 million to $100 million of EBITDA for 2024 and $140 million to $160 million for 2025, driven by new acquisitions and increased surface use royalties [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing ongoing commercial traction and the potential for double-digit growth in the near to medium term [32] - The company is benefiting from increased development in the Permian Basin, with a focus on drilling efficiencies among producers [25][44] Other Important Information - The company declared its inaugural quarterly dividend of $0.10 per share, marking a commitment to returning capital to shareholders [16] - The company paid down approximately $120 million in debt during the quarter, reducing the net leverage ratio to 2.8 times [14] Q&A Session Summary Question: Details on recent acquisitions - The two acquisitions totaled approximately $47 million and are generating about $9 million of EBITDA, tracking to just over a 5 times multiple, which is considered attractive [22] Question: Outlook on activity levels in the industry - Management noted that while there is a focus on drilling efficiencies, they are seeing continued opportunities for growth beyond traditional oil and gas activities, including solar and data center projects [26] Question: Timeline for commercial projects - Management indicated that while some projects may take time to develop, cash flow impacts could be realized before full operational status is achieved, particularly with the data center project [34] Question: Contribution of wind energy - Currently, there is no revenue from windmills, and the company is primarily focused on solar energy projects [37] Question: Performance of produced water business - The produced water business is benefiting from strong partnerships and increasing volumes, which are expected to drive higher EBITDA in the coming year [40]

Earnings Presentation 3Q 2024 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 ...

Subscription Offer - Join iREIT on Alpha for in-depth research on REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives [1] - The service has received 438 testimonials, most of which are 5-star reviews [1] - A FREE 2-week trial is available with no obligation [1] Analyst's Position - The analyst holds a beneficial long position in LB and TPL through stock ownership, options, or other derivatives [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with mentioned companies [2] Seeking Alpha's Disclaimer - Past performance does not guarantee future results [3] - No specific investment recommendations or suitability advice is provided [3] - Views expressed may not represent those of Seeking Alpha as a whole [3] - Seeking Alpha is not a licensed securities dealer, broker, or US investment adviser [3] - Analysts include both professional and individual investors who may not be licensed or certified [3]