LandBridge Reports 51% Revenue Growth to $109.95 Million, Faces $41.48 Million Net Loss in 2024

LandBridge Company LLC (LandBridge), a Delaware limited liability company, reported total revenues of $109.95 million for the year ended December 31, 2024, a 51% increase compared to $72.87 million in 2023. This increase stemmed from growth in surface use royalties (139% increase to $31.62 million), easements and other surface-related revenues (171% increase to $34.12 million), and resource royalties (100% increase to $12.84 million). However, the company reported a net loss of $41.48 million for 2024, contrasting sharply with a net income of $63.17 million in 2023. This significant shift is largely attributable to a $95.3 million increase in non-cash share-based compensation expense. Adjusted EBITDA, a non-GAAP measure, increased by 55% to $97.07 million, and Free Cash Flow increased by 33% to $66.65 million.

The company's financial performance was significantly impacted by several key developments during the year. LandBridge completed its initial public offering (IPO) on July 1, 2024, raising approximately $270.9 million in net proceeds after expenses. Subsequently, the company made significant acquisitions, including the Wolf Bone Acquisition (46,000 surface acres for $246.8 million), the Winkler County Acquisition (1,280 surface acres for $20.5 million), and the Brininstool Acquisition (5,820 surface acres for $26.8 million). A December 2024 private placement raised an additional $339.3 million in net proceeds, partially funding these acquisitions and the repurchase of OpCo Units from LandBridge Holdings. A further acquisition of 3,000 surface acres in Lea County, New Mexico, occurred on February 25, 2025.

LandBridge's operations are heavily reliant on a limited number of customers, with its top ten customers accounting for 78% of total revenue in 2024. WaterBridge, a related company sharing management and a financial sponsor with LandBridge, is a significant customer, representing 24% of 2024 revenue. The company also entered into a lease development agreement with PowLan for the development of a data center on approximately 2,000 acres of its land. As of December 31, 2024, LandBridge owned approximately 273,000 surface acres and 4,424 gross mineral acres in the Delaware Basin. WaterBridge operates approximately 767,000 barrels per day (bpd) of existing produced water handling capacity on LandBridge's land, with an additional 1.7 million bpd of permitted capacity.

The company's financial condition as of December 31, 2024, included $385.5 million in total debt outstanding, with working capital of $38.9 million and cash and cash equivalents of $37.0 million. The weighted average interest rate on borrowings under the credit facility was 8.39% for revolving credit and 8.47% for term loans. LandBridge's outlook for the future remains positive, contingent upon continued energy and infrastructure development in the Permian Basin and the successful execution of its active land management strategy. The company acknowledges significant risks associated with commodity price volatility, customer concentration, and regulatory changes impacting the energy industry.

LandBridge's 2024 performance reflects a period of significant expansion and transition to a publicly traded company. The company's future success hinges on its ability to manage its expanded operations, secure new commercial arrangements, and navigate the evolving regulatory landscape of the energy sector. The company's reliance on a limited number of customers and the cyclical nature of the oil and gas industry present ongoing challenges.