LandBridge Company LLC(LB) - 2025 Q2 - Quarterly Report

Executive Summary LandBridge, formed in 2023 and public in 2024, generates revenue from surface acreage, resource sales, and oil/gas royalties in the Delaware Basin, operating as a single segment Key Financial Highlights (Six Months Ended June 30, 2025 vs. June 30, 2024): | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | YoY Change | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | :--------- | | Total revenues | $91,484 | $44,968 | 103.4% | | Net income (loss) | $33,934 | $(46,877) | 172.4% | | Net cash provided by operating activities | $53,245 | $33,258 | 60.1% | | Net cash used in investing activities | $(19,946) | $(430,968) | 95.4% (decrease in use) | | Net cash (used in) provided by financing activities | $(49,986) | $384,533 | (113.0%) (shift to use) | - Strategic Focus: Actively manages land and resources to support energy and infrastructure development, including oil and natural gas, solar power, power storage, digital infrastructure, and waste facilities, aiming for long-term revenue and Free Cash Flow[107] - Acquisitions: Acquired approximately 57,000 surface acres subsequent to Q2 2024, impacting comparability and contributing to revenue growth[144] - Related Party Relationships: Leverages shared financial sponsor (Five Point) and management team with WaterBridge, a water infrastructure company, to gain insights into oil and natural gas production trends and facilitate infrastructure development on its land, generating royalties and surface use payments[108] - Revenue Diversification: Expects fee-based revenues to grow relative to oil and gas royalties and plans to pursue additional revenue streams from conventional and renewable power generation, water treatment, digital infrastructure, and telecommunication towers[123] PART I — FINANCIAL INFORMATION This section provides the core financial data and disclosures for LandBridge Company LLC, including unaudited condensed consolidated financial statements and management's discussion and analysis Glossary This section defines key terms used throughout the financial report Cautionary Note Regarding Forward-Looking Statements This section advises readers about the inherent uncertainties and risks associated with forward-looking statements in the report Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for LandBridge Company LLC, along with detailed notes explaining key accounting policies and transactions Condensed Consolidated Balance Sheets Total assets increased to $1,066.4 million as of June 30, 2025, driven by property, plant and equipment and deferred tax assets, while total liabilities decreased and equity increased | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (vs Dec 31, 2024) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------------------- | | Cash and cash equivalents | $20,345 | $37,032 | $(16,687) | | Accounts receivable, net | $17,881 | $12,544 | $5,337 | | Total current assets | $44,140 | $53,315 | $(9,175) | | Property, plant and equipment, net | $918,312 | $902,742 | $15,570 | | Deferred tax assets | $58,548 | $29,416 | $29,132 | | Total assets | $1,066,380 | $1,032,479 | $33,901 | | Total current liabilities | $10,361 | $14,410 | $(4,049) | | Long-term debt, net | $370,872 | $380,815 | $(9,943) | | Total liabilities | $381,415 | $395,408 | $(13,993) | | Total shareholders' equity | $684,965 | $637,071 | $47,894 | Condensed Consolidated Statements of Operations For the three and six months ended June 30, 2025, LandBridge reported significant revenue growth and a return to net income compared to net losses in the prior year periods Three Months Ended June 30, 2025 vs. 2024: | Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change | YoY % Change | | :------------------------------------ | :------------------ | :------------------ | :--------- | :----------- | | Total revenues | $47,533 | $25,953 | $21,580 | 83.1% | | Operating income (loss) | $28,502 | $(51,236) | $79,738 | 155.6% | | Net income (loss) | $18,475 | $(57,653) | $76,128 | 132.0% | | Net income attributable to LandBridge Company LLC | $7,502 | N/A | N/A | N/A | | Basic Net income per share of Class A shares | $0.30 | N/A | N/A | N/A | | Diluted Net income per share of Class A shares | $0.24 | N/A | N/A | N/A | Six Months Ended June 30, 2025 vs. 2024: | Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change | YoY % Change | | :------------------------------------ | :------------------ | :------------------ | :--------- | :----------- | | Total revenues | $91,484 | $44,968 | $46,516 | 103.4% | | Operating income (loss) | $53,539 | $(37,716) | $91,255 | 241.9% | | Net income (loss) | $33,934 | $(46,877) | $80,811 | 172.4% | | Net income attributable to LandBridge Company LLC | $13,966 | N/A | N/A | N/A | | Basic Net income per share of Class A shares | $0.57 | N/A | N/A | N/A | | Diluted Net income per share of Class A shares | $0.44 | N/A | N/A | N/A | Condensed Consolidated Statements of Shareholders' and Member's Equity Total shareholders' equity increased to $685.0 million by June 30, 2025, driven by net income, non-cash contributions, and tax adjustments, partially offset by distributions Shareholders' Equity Changes (January 1, 2025 to June 30, 2025): | Item | Amount (in thousands) | | :------------------------------------ | :-------------------- | | Balance at January 1, 2025 | $637,071 | | Net income (Q1 + Q2) | $33,934 | | Deemed non-cash contributions (Q1 + Q2) | $17,989 | | RSU share-based compensation expense (Q1 + Q2) | $4,422 | | Tax impact of ownership interest adjustment | $30,123 | | Tax distributions (Q1 + Q2) | $(22,471) | | Dividends and distributions (Q1 + Q2) | $(15,301) | | Balance at June 30, 2025 | $684,965 | - Class A Shares Outstanding: * June 30, 2025: 25,155,419 shares * December 31, 2024: 23,255,419 shares[34] - Class B Shares Outstanding: * June 30, 2025: 51,213,492 shares * December 31, 2024: 53,227,852 shares[34] Condensed Consolidated Statements of Cash Flows Operating cash flow increased by 60% to $53.2 million, investing activities saw a 95% decrease in cash used, and financing activities shifted to a net cash outflow for the six months ended June 30, 2025 Six Months Ended June 30, 2025 vs. 2024: | Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change | YoY % Change | | :------------------------------------ | :------------------ | :------------------ | :--------- | :----------- | | Net cash provided by operating activities | $53,245 | $33,2