Financial Data and Key Metrics Changes - In Q4 2024, the company reported a revenue increase of 109% year-over-year, reaching $36.5 million, and an adjusted EBITDA increase of 108% year-over-year with an adjusted EBITDA margin of 87% [3][12] - For the full year 2024, revenues grew by 51% year-over-year to $110 million, and adjusted EBITDA increased by 55% year-over-year to $97.1 million, achieving an adjusted EBITDA margin of 88% [3][12][15] - Free cash flow for Q4 2024 was approximately $26.7 million, with a free cash flow margin of 73%, while the full year generated $66.7 million of free cash flow [16][21] Business Line Data and Key Metrics Changes - Surface use royalties and revenues increased by 54% sequentially in Q4, contributing significantly to revenue growth [13] - Non-oil and gas royalty revenue accounted for nearly 90% of overall revenue in Q4, remaining flat from the prior quarter but up about 20% year-over-year [14] - Resource sales and royalties declined by 28% sequentially due to decreased brackish water sales and royalty volumes [13] Market Data and Key Metrics Changes - The company expanded its land holdings from approximately 72,000 surface acres to approximately 273,000 surface acres, with significant acquisitions in Q4 [4][5] - The acquisition of the Wolf Bone Ranch added 46,000 acres in a strategic location for oil and natural gas production, securing a minimum annual revenue commitment of $25 million for the next five years [5] Company Strategy and Development Direction - The company is focused on expanding its active land management strategy, which has proven effective in creating shareholder value [4] - Future growth opportunities are identified in digital infrastructure, renewable energy, and commercial real estate, with recent agreements for solar energy project development [6][7] - The company aims to maintain a strong balance sheet while pursuing value-enhancing land acquisitions, focusing on underutilized and under-commercialized surface [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from digital infrastructure and the demand for data centers, particularly in West Texas [8][9] - The company reaffirmed its guidance for 2025, expecting adjusted EBITDA of $170 million to $190 million, driven by contributions from recent acquisitions and increased surface use royalties [22] Other Important Information - The company ended 2024 with $385 million of debt, up from $281.3 million at the end of Q3 2024, and total liquidity of $107 million [19][21] - A cash dividend of $0.10 per share was declared, with plans to revisit the amount quarterly [21] Q&A Session Summary Question: Surface use economic efficiency growth expectations - Management indicated that there is still significant room for improvement in surface use economic efficiency, with potential to achieve over $3,000 per acre [25][27] Question: Details on the WES agreement and third-party agreements - The WES agreement is expected to generate low to mid-teens of royalties once operational, with ongoing discussions for additional third-party agreements [29][32] Question: Data center roadmap and revenue opportunities - The data center project has a 2-year site selection period followed by a 4-year construction period, with expected revenues ramping up as construction phases come online [36][39] Question: M&A outlook and market fragmentation - The market remains fragmented with many opportunities for M&A, which continues to be a priority for capital allocation [80][82] Question: Impact of oil prices on 2025 guidance - The 2025 guidance does not incorporate significant ramps based on oil prices, as the company is insulated from commodity price fluctuations [74][75]