Core Insights - Horizon Kinetics Asset Management increased its position in LandBridge Company LLC by 133,188 shares in Q3, despite a decrease in position value by $71.14 million due to falling share prices [2][3][6] Company Overview - LandBridge Company LLC is an energy infrastructure firm based in Houston, focusing on maximizing value from land and resource assets in the Delaware Basin [8] - The company has a market capitalization of $4.18 billion, with a revenue of $178.81 million and a net income of $24.53 million for the trailing twelve months [5] - LandBridge's business model includes leasing land for oil and natural gas development, collecting royalties, and selling ancillary materials to energy sector participants [12] Financial Performance - In Q3, LandBridge reported revenue of $50.8 million, representing a 78% year-over-year increase, with adjusted EBITDA reaching $44.9 million at an 88% margin [10] - Free cash flow for the quarter was $33.7 million, and management reaffirmed full-year adjusted EBITDA guidance of $165 million to $175 million [10] Investment Position - Following the transaction, LandBridge comprised 3.66% of Horizon Kinetics' 13F assets, with a total of 5.63 million shares valued at $300.47 million [4][6] - As of the latest report, LB shares were priced at $52.57, down 10% over the past year, underperforming the S&P 500, which increased by about 15% in the same period [4]

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]

As filed with the U.S. Securities and Exchange Commission on June 17, 2024 Table of Contents Registration No. 333-279893 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 2 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 LandBridge Company LLC (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incorporation or organization) Delaware 6792 93-3636146 (Primary Standard Industrial Classification Code Number) (I.R.S. Empl ...