LandBridge Company LLC

What they do

LandBridge owns or manages more than 325,000 surface acres in the Delaware Basin and adjacent Central Basin Platform sub-regions of the Permian Basin, as of June 30, 2026. It does not operate oil and gas wells; it leases surface access and receives royalties and surface-use payments from operators, midstream companies and industrial users on its land. It shares a sponsor (Five Point) and management team with WaterBridge, a water midstream company that handles produced water on LandBridge acreage.

Revenue drivers

• Surface use royalties and revenue — Largest and fastest-growing line: $52.2 million in Q2 2026 versus $37.0 million in Q1 2026, driven by infrastructure and industrial activity on the land.
• Produced water royalties from WaterBridge — LandBridge receives a royalty per barrel of produced water WaterBridge handles on its land; WaterBridge operated about 1.5 million bpd of handling capacity on LandBridge land as of December 31, 2025.
• Oil and gas royalties — Royalties from hydrocarbon production on the acreage; contributed $0.6 million of the sequential revenue increase in Q2 2026.
• Resource sales, royalties and other — Sand, brackish water and other resource sales tied to drilling and completion activity; $0.1 million sequential increase in Q2 2026, offset by a $0.1 million decline in other revenue.

Recent performance

Q2 2026 revenue was a record $66.8 million, up 41% year-over-year and 31% quarter-over-quarter, versus $51.0 million in Q1 2026 and $47.5 million in Q2 2025. Net income was $31.0 million, up 68% year-over-year and 74% quarter-over-quarter, with a 46% net income margin. Adjusted EBITDA was $59.8 million (89% margin) and cash flow from operations was $41.4 million. The sequential increase was mainly $15.2 million higher surface use royalties and revenues, plus $0.6 million higher oil and gas royalties and $0.1 million higher resource sales, partly offset by $0.1 million lower other revenue. Full-year 2025 revenue was $199.1 million with net income of $72.4 million.

Strategy

The company aims to actively manage its surface acreage to support energy and infrastructure development and grow long-term revenue and free cash flow without owning or operating projects. It is pursuing commercial relationships beyond hydrocarbons in solar power generation, power storage, power generation/microgrids, cryptocurrency mining and data management, from which it expects surface-use fees rather than capital expenditures. On August 4, 2026 it agreed to acquire about 560 surface acres underlying the Northern Delaware Basin Landfill in Lea County, New Mexico for about $20 million, to close in Q3 2026 alongside WaterBridge's acquisition of an environmental waste management facility, with a long-term surface use agreement. Also on August 4, 2026 it amended its 2025 Revolving Credit Facility to raise commitments from $275.0 million to $375.0 million and cut applicable margins and letter of credit fees by 0.25%. The board unanimously approved conversion and redomiciliation from a Delaware LLC to a Texas corporation after a special committee recommendation.

Risks

• Dependence on E&P activity — Revenue depends on oil and gas drilling, completion and production by third parties on or around the land, which LandBridge does not control and which is sensitive to commodity prices and capital availability.
• Producer concentration in the Permian — Assets and revenue are concentrated in the Delaware Basin and adjacent Central Basin Platform, so a regional slowdown in Permian activity would directly reduce royalties and surface-use fees.
• Sponsor and related-party reliance — LandBridge shares a sponsor and management team with WaterBridge and receives water-handling royalties tied to WaterBridge's infrastructure build-out on its land.
• Digital infrastructure execution — The digital infrastructure and power strategy rests on LOIs, options and late-stage negotiations that are non-binding; the release cites seven counterparties and more than 10 GW of power generation potential, with no assurance of signed agreements.

Outlook

Management describes the Q2 2026 results as showing a high-margin, asset-light model that continues to convert growth across multiple revenue streams into free cash flow, and expects that dynamic to continue as the business scales. It cites momentum in the West Texas digital infrastructure thesis, describing LOIs, options or late-stage negotiations with seven power and digital infrastructure counterparties representing more than 10 GW of power generation potential. The board's approval to redomicile in Texas as a corporation is framed as a step toward broader index eligibility.