Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most rated 5 stars, indicating a strong user satisfaction [1] - The author discloses a beneficial long position in several companies, including TPL, LB, DHR, HD, and CSL, through stock ownership or derivatives [1] Group 2 - The article emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment advice [2] - It clarifies that no specific investment recommendations are being made, and opinions expressed may not reflect the views of Seeking Alpha as a whole [2] - The article notes that the analysts contributing to Seeking Alpha may not be licensed or certified by any regulatory body, highlighting the diverse backgrounds of contributors [2]

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most rated 5 stars, indicating a strong reputation in the market [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in shares of TPL and LB, indicating potential investment interests [2] - It clarifies that the opinions expressed are personal and not influenced by compensation from any company mentioned [2] Group 3 - Seeking Alpha emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment advice [3] - The platform notes that its analysts are third-party authors, which may include both professional and individual investors without formal licensing [3]

Industry Overview - The oil and gas industry is susceptible to macroeconomic volatility and supply dynamics from large producers [1] - Some companies maintain resilience through high-margin business models and strategic land acquisitions [1] Company Focus - LandBridge Company LLC is highlighted as a prime example of resilience in the oil and gas sector [1]

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most rated 5 stars, indicating a strong user satisfaction [1] - The article emphasizes a free 2-week trial offer, suggesting that potential users have nothing to lose by trying the service [1] Group 2 - The article includes a disclosure regarding the author's beneficial long position in the shares of LB and TPL, indicating a vested interest in these stocks [1] - It clarifies that the opinions expressed are those of the author and not influenced by compensation from any company mentioned [1] - The article notes that Seeking Alpha's analysts are third-party authors, which may include both professional and individual investors without formal licensing [2]

Group 1 - The market has presented numerous investment opportunities in 2023, leading to increased capital deployment by the analyst [1] - Investments have been made in energy stocks, cyclical industrials, and a new stock has been added to the portfolio [1] - The analyst holds long positions in several companies, including TPL, LB, FIX, ODFL, and UNP, through various financial instruments [1]

Financial Data and Key Metrics Changes - The company reported a strong start to 2025, with revenues increasing to approximately $44 million, representing a 20% sequential increase and a 131% year-over-year growth [10] - Adjusted EBITDA for Q1 was $38.8 million, reflecting a sequential increase of 221% year-over-year, with an adjusted EBITDA margin of 88% [11] - Free cash flow was approximately $15.8 million, with a free cash flow margin of 36%, although there was a quarter-over-quarter compression due to higher accounts receivable [12] Business Line Data and Key Metrics Changes - Resource sales and royalties increased by 118%, driven by increased brackish water sales and royalty volumes from newly acquired acreage [10] - Surface use royalties and revenues increased by 3% sequentially, with a 72% sequential increase in surface use royalty volumes [11] - Oil and gas royalties declined by 24% sequentially due to a decrease in net royalty production [11] Market Data and Key Metrics Changes - Non-oil and gas royalty revenue streams accounted for approximately 92% of overall revenue during Q1, up from 88% in the previous quarter [6] - The company is well-positioned in the Delaware Basin, where demand for water handling infrastructure continues to grow [7] Company Strategy and Development Direction - The company emphasizes a diversified revenue model that insulates it from oil and gas price volatility, with a focus on non-mineral royalties [5] - The active land management strategy is expected to drive growth, particularly following the acquisition of the Wolfbone Ranch, which contributed to a significant increase in produced water royalty volumes [9] - The Speedway pipeline project is anticipated to enhance cash flow significantly once operational, with an expected capacity of up to 500,000 barrels a day [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic volatility, citing strong demand for services and no changes in production expectations from major customers [17][18] - The company remains optimistic about growth prospects, particularly in the core areas of operation, despite broader industry concerns [23] Other Important Information - The Board declared a dividend of $0.10 per Class A share, payable on June 19 to shareholders of record as of June 5 [12] - The company is actively pursuing value-enhancing land acquisitions while maintaining a strong balance sheet for financial flexibility [12] Q&A Session Summary Question: Impact of Permian activity levels on produced water handling growth - Management noted that the majority of their business is insulated from commodity price exposure, with 92% of revenue from non-mineral royalties, indicating a strong position despite potential production slowdowns [16] Question: Demand for the Speedway pipeline and its growth impact - Management indicated that the pipeline could generate approximately $30 million a year in cash flow once operational, with initial payments expected in the fourth quarter [19] Question: Update on data centers in West Texas - Management stated that updates on data centers would be available in 12 to 18 months, with ongoing strong traction in discussions [25] Question: Growth in produced water volumes across the basin - Management confirmed expectations for water growth to eclipse oil growth in core development areas due to deeper intervals and flatter production decline rates [34] Question: Desalination opportunities and power generation discussions - Management highlighted ongoing pilot projects with partners and the increasing demand for power generation in West Texas, indicating a positive outlook for future developments [38]

Financial Data and Key Metrics Changes - The company reported a strong start to 2025, with revenues increasing to approximately $44 million, representing a 20% sequential increase and a 131% year-over-year growth [9] - Adjusted EBITDA for Q1 was $38.8 million, reflecting a sequential increase of 221% year-over-year, with an adjusted EBITDA margin of 88% [10] - Free cash flow was approximately $15.8 million, with a free cash flow margin of 36%, although there was a quarter-over-quarter compression due to higher accounts receivable [11] Business Line Data and Key Metrics Changes - Resource sales and royalties increased by 118%, driven by increased brackish water sales and royalty volumes from newly acquired acreage [9] - Surface use royalties and revenues increased by 3% sequentially, supported by a 72% sequential increase in surface use royalty volumes [10] - Oil and gas royalties declined by 24% sequentially due to a decrease in net royalty production, with volumes falling from 11.99 BOE per day in Q4 2024 to 9.23 BOE per day in Q1 2025 [10] Market Data and Key Metrics Changes - Non-oil and gas royalty revenue streams accounted for approximately 92% of overall revenue during Q1, up from approximately 88% in the previous quarter [5] - The company continues to see strong demand for water handling infrastructure in the Delaware Basin, which is a key driver of business through its affiliate company Waterbridge [6] Company Strategy and Development Direction - The company is focused on advancing its active land management strategy in 2025, with strong growth driven by the acquisition of the Wolfbone Ranch [7] - The Wolfbone Ranch contributed to a greater than 70% quarter-over-quarter increase in produced water royalty volumes, underpinned by a minimal annual revenue commitment of $25 million for each of the next five years [8] - The company aims to maintain a strong balance sheet and pursue value-enhancing land acquisitions as part of its capital allocation priorities for 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, emphasizing that the majority of revenue streams are insulated from oil and gas price volatility [4] - Despite macroeconomic volatility, management has not observed any changes in production expectations from major customers, indicating a stable demand for services [16] - The company anticipates continued growth in produced water handling, particularly in core areas where demand remains strong [22] Other Important Information - The Board declared a dividend of $0.10 per Class A share, payable on June 19 to shareholders of record as of June 5 [11] - The Speedway pipeline project is expected to provide significant cash flow once operational, with an anticipated capacity of up to 500,000 barrels a day [18] Q&A Session Summary Question: Impact of Permian activity levels on produced water handling growth - Management stated that the majority of the business is insulated from commodity price exposure, with 92% of revenue from non-mineral royalties, indicating a strong position despite potential production slowdowns [15] Question: Demand for the Speedway pipeline and its growth impact - Management indicated that the pipeline could generate approximately $30 million a year in cash flow once operational, with initial payments expected in the fourth quarter [18] Question: Update on data centers in West Texas - Management noted that traction remains strong, with ongoing discussions about power generation needs in West Texas, which could benefit the company [25][27] Question: Growth in produced water volumes across the basin - Management confirmed that water growth is expected to eclipse oil growth in core development areas due to deeper intervals and flatter PDP declines [32] Question: Desalination opportunities and Waterbridge's perspective - Management highlighted ongoing pilot projects with Five Point and the potential for desalination efforts to be economically beneficial, although feasibility at scale is still being evaluated [35][36]

Financial Performance - LandBridge's Q1 2025 revenue increased by 131% year-over-year[10] - Adjusted EBITDA for Q1 2025 increased by 129% year-over-year[10] - Non-oil and gas royalty revenue reached approximately 92% of total revenue in Q1 2025[10] - Adjusted EBITDA margin was 88% in Q1 2025[11] - Free Cash Flow Margin was 36% in Q1 2025[11] Operational Highlights - Surface use royalty volumes increased by approximately 72% to approximately 14 million barrels per day (MMBPD) in Q1 2025[10] - LandBridge acquired approximately 3000 surface acres in Lea County, NM and approximately 800 surface acres in Reeves County, Texas, bringing total surface acreage owned to approximately 277000 acres[10] Capital Allocation - A quarterly cash dividend of $010 per share was announced[10] - The company targets a net leverage ratio of 20-25x by mid-year 2025[28] Revenue Streams - Surface Use Royalties and Revenues accounted for 59% of YTD diversified streams[23] - Resource Sales and Royalties accounted for 33% of YTD diversified streams[23] - Oil & Gas Royalties accounted for 8% of YTD diversified streams[23]

Financial Performance - Total revenues for the three months ended March 31, 2025, were $43,951,000, a significant increase from $19,014,000 in the same period of 2024, representing a growth of 131.5%[42] - Net income for the first quarter of 2025 was $15,459,000, compared to $10,776,000 in the first quarter of 2024, reflecting a year-over-year increase of 43.5%[42] - Operating income for the three months ended March 31, 2025, was $25,037,000, up from $13,520,000 in the prior year, indicating an increase of 85.5%[42] - The company reported cash flows from operating activities of $15,913,000 for the three months ended March 31, 2025, compared to $17,215,000 in the same period of 2024[48] - For the three months ended March 31, 2025, the company reported a net income of $6.464 million, with diluted net income per share of Class A shares at $0.20[93] Expenses and Liabilities - The company incurred general and administrative expenses of $14,728,000 in Q1 2025, significantly higher than $2,159,000 in Q1 2024, marking an increase of 582.5%[42] - The company’s total liabilities decreased to $387,443,000 as of March 31, 2025, from $395,408,000 at the end of 2024, a reduction of 2.4%[40] - Total debt as of March 31, 2025, was $379.6 million, a decrease from $385.5 million as of December 31, 2024[71] - The total outstanding borrowings as of March 31, 2025, amounted to $379.3 million, consisting of $30.0 million in revolving credit and $349.3 million in term loans[186] Assets and Equity - The company reported a total of $964,506,000 in non-current assets as of March 31, 2025, compared to $950,159,000 at the end of 2024, an increase of 1.5%[40] - The company’s total shareholders' equity increased to $620,657,000 as of March 31, 2025, up from $608,066,000 at the end of 2024, reflecting a growth of 2.4%[40] - As of March 31, 2025, total property, plant, and equipment, net amounted to $918.6 million, an increase from $902.7 million as of December 31, 2024[68] Tax and Compliance - The company recorded income tax expense of $1.6 million for the three months ended March 31, 2025, with an effective tax rate of 9.4%[70] - The company’s effective tax rate for the three months ended March 31, 2025, was lower than the statutory rate of 21.0% primarily due to the impact of noncontrolling interest[70] - The company was in compliance with all financial covenants as of March 31, 2025[78] Shareholder Information - Class A shares outstanding remained at 23,255,419 as of March 31, 2025, with a net income attributable to Class A shares of $6,464,000[42] - The company paid a cash dividend of $0.10 per share to Class A shareholders, totaling $2.3 million, and a corresponding cash distribution of $0.10 per unit to OpCo unitholders, totaling $5.3 million during the same period[84] Credit Facilities and Borrowing Costs - The company’s revolving credit facility has an increased available capacity of $100.0 million following amendments made on July 3, 2023[72] - The weighted average interest rate for term loan borrowings was 7.74%, while for revolving credit borrowings it was 7.82%[186] Compensation and Related Party Transactions - The company recognized a total share-based compensation expense of $11.14 million for the three months ended March 31, 2025, compared to $0.81 million in the same period of 2024[87] - Revenues from related party transactions for the three months ended March 31, 2025, totaled $12.279 million, significantly up from $3.083 million in the prior year[95] Other Financial Metrics - The company incurred approximately $3.0 million for shared services and direct cost reimbursements during the three months ended March 31, 2025[96] - The company’s remaining unrecognized compensation expense for Incentive Units was $71.4 million, with a weighted average remaining period of approximately 2.2 years[88] - As of March 31, 2025, the company had 30,020 outstanding Incentive Units with a grant date fair value of $5,130[88] - Depreciation expense for the three months ended March 31, 2025, was $0.8 million, compared to $0.6 million for the same period in 2024[68] - The company’s total oil and natural gas properties remained stable at $39.1 million as of March 31, 2025[68]

Financial Performance - Q1 2025 revenue reached $44.0 million, representing a 131% increase year-over-year and a 20% increase quarter-over-quarter[5]. - Net income for Q1 2025 was $15.5 million, with a net income margin of 35%[5][8]. - Adjusted EBITDA for Q1 2025 was $38.8 million, up 129% year-over-year and 22% quarter-over-quarter, with an adjusted EBITDA margin of 88%[5][8]. - Resource sales and royalties contributed $14.4 million in Q1 2025, marking a 118% sequential increase[9]. - Oil and gas royalties decreased to $3.4 million in Q1 2025, a 24% sequential decline[10]. - Net income for the three months ended March 31, 2025, was $15,459,000, an increase of 43% compared to $10,776,000 for the same period in 2024[29]. - Adjusted EBITDA for the three months ended March 31, 2025, was $38,778,000, up from $16,907,000 in the same period of 2024, reflecting a significant increase in operational performance[34]. Cash Flow and Liquidity - Free cash flow for Q1 2025 was $15.8 million, down from $26.7 million in Q4 2024 due to higher working capital balances[11]. - Free Cash Flow for the three months ended March 31, 2025, was $15,844,000, with a Free Cash Flow Margin of 36%[38]. - The company reported a net cash provided by operating activities of $15,913,000 for the three months ended March 31, 2025, compared to $17,215,000 for the same period in 2024[38]. - Total liquidity as of March 31, 2025, was $84.9 million, with approximately $70.0 million available under the revolving credit facility[13]. Assets and Liabilities - Total current assets decreased to $43,594,000 as of March 31, 2025, down from $53,315,000 as of December 31, 2024, primarily due to a reduction in cash and cash equivalents[28]. - Cash and cash equivalents at the end of the period were $14,935,000, a decrease of 60% from $37,032,000 at the beginning of the period[29]. - Total liabilities decreased to $387,443,000 as of March 31, 2025, compared to $395,408,000 as of December 31, 2024[28]. - Total shareholders' equity attributable to LandBridge Company LLC increased to $440,345,000 as of March 31, 2025, from $436,012,000 as of December 31, 2024[28]. Dividends and Outlook - The company declared a quarterly cash dividend of $0.10 per share, payable on June 19, 2025[15]. - The company re-affirms its FY25 adjusted EBITDA outlook of $170 million to $190 million[17]. Share-Based Compensation and Acquisitions - Share-based compensation for the three months ended March 31, 2025, amounted to $11,140,000, significantly higher than $810,000 in the same period of 2024[29]. - The company incurred $17,818,000 in acquisitions during the three months ended March 31, 2025, compared to $55,072,000 in the same period of 2024[29].