Increases holdings to ~272,000 surface acres,
including recently-announced agreement to acquire the Wolf Bone
Ranch
Publishes webcast to investor relations site
providing overview of recent acquisitions
LandBridge Company LLC (NYSE: LB) (“LandBridge”) today announced
it has closed its previously-announced acquisition of approximately
5,800 largely contiguous surface acres in Lea County, New Mexico,
expanding LandBridge’s holdings into a new area of the Delaware
Basin.
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the full release here:
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(Graphic: LandBridge)
The land supports existing water infrastructure, including
produced water handling facilities and supply water infrastructure.
LandBridge believes the acreage is well-positioned to drive further
revenue growth through additional water infrastructure, including a
potential distribution hub for water supply into New Mexico by
WaterBridge, an affiliate of LandBridge and a leading water
midstream platform.
Together with the recent acquisition in Winkler County, Texas,
and agreement to acquire the Wolf Bone Ranch, LandBridge has now
announced or closed acquisitions totaling ~53,080 acres in the
fourth quarter of 2024 at a blended 2025E EBITDA1 multiple of 7.6x,
which is expected to result in the following:
- Total owned surface acreage of ~272,000 following closing of
the Wolf Bone Ranch acquisition;
- Greater than 20% accretion to 2025E FCF1 per common share;
and
- An increase in 2025 Adjusted EBITDA1 guidance to between $170
million and 190 million assuming the closing of the Wolf Bone Ranch
acquisition in the fourth quarter of 2024.
The acquisitions have been or are expected to be funded with a
mix of equity and debt financing, including proceeds from
LandBridge’s recently-announced private placement of 5.8 million
Class A shares, resulting in an estimated pro forma LQA net
leverage1, 2 of 2.7x, with an estimated $113 million in pro forma
liquidity. Following the closing of the private placement,
LandBridge’s management team and financial sponsor, Five Point
Energy, will own an approximate 70% ownership interest in
LandBridge.
(1) Adjusted EBITDA and Free Cash Flow are
non-GAAP financial measures. See a note on non-GAAP financial
measures below.
(2) See a note on Pro Forma LQA Net Leverage
below.
Additional information regarding the details of this acquisition
and other recently closed and announced acquisitions has been
provided via webcast on the Investor’s section of LandBridge’s
website at https://ir.landbridgeco.com/overview/default.aspx.
About LandBridge
LandBridge owns approximately 227,000 surface acres across Texas
and New Mexico, located primarily in the heart of the Delaware
sub-basin in the Permian Basin, the most active region for oil and
natural gas exploration and development in the United States.
LandBridge actively manages its land and resources to support and
encourage oil and natural gas production and broader industrial
development. Since its founding in 2021, LandBridge has served as
one of the leading land management businesses within the Delaware
Basin. LandBridge was formed by Five Point Energy LLC, a private
equity firm with a track record of investing in and developing
energy, environmental water management and sustainable
infrastructure companies within the Permian Basin.
About Five Point
Five Point Energy is a private equity firm focused on building
businesses within the environmental water management, surface
management and sustainable infrastructure sectors. The firm was
founded by industry veterans who have had successful careers
investing in, building, and running midstream infrastructure
companies. Five Point’s strategy is to buy and build assets, create
companies, and grow them into sustainable enterprises with premier
management teams and industry-leading E&P partners. Based in
Houston, Five Point targets equity investments up to $1 billion and
has approximately $7 billion of assets under management across
multiple investment funds. For more information about Five Point
Energy, please visit: www.fivepointenergy.com.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act, and Section 21E
of the Securities Exchange Act of 1934, as amended. These
statements are based on LandBridge’s current beliefs, as well as
current assumptions made by, and information currently available
to, LandBridge, and therefore involve risks and uncertainties that
are difficult to predict. Generally, future or conditional verbs
such as “will,” “would,” “should,” “could,” or “may” and the words
“believe,” “anticipate,” “continue,” “intend,” “expect” and similar
expressions identify forward-looking statements. These
forward-looking statements include any statements regarding the
Wolf Bone Ranch acquisition, including the ability of the parties
to consummate the acquisition in a timely manner, or at all,
satisfaction of the conditions precedent to the consummation of the
acquisition, including the ability to secure regulatory approvals
in a timely manner or at all, the expected benefits of the
acquisition, including expected accretion, integration plans,
synergies, opportunities and anticipated future performance, and
the private placement and the use of proceeds therefrom. These
forward-looking statements are subject to a number of risks,
uncertainties, and assumptions, many of which are beyond our
control.
Forward-looking statements include, but are not limited to,
strategies, plans, objectives, expectations, intentions,
assumptions, future operations and prospects and other statements
that are not historical facts, including our estimated future
financial performance. You should not place undue reliance on
forward-looking statements. Although LandBridge believes that its
plans, intentions and expectations reflected in or suggested by any
forward-looking statements made herein are reasonable, LandBridge
may be unable to achieve such plans, intentions or expectations and
actual results, and its performance or achievements may vary
materially and adversely from those envisaged in this press release
due to a number of factors including, but not limited to: our
customers’ demand for and use of our land and resources; the
success of our affiliates, including WaterBridge and Desert
Environmental LLC, in executing their business strategies,
including their ability to construct infrastructure, attract
customers and operate successfully on our land; our customers’
willingness and ability to develop our land or any potential
acquired acreage to accommodate any future surface use
developments, such as the Wolf Bone Ranch; the domestic and foreign
supply of, and demand for, energy sources, including the impact of
actions relating to oil price and production controls by the
members of the Organization of Petroleum Exporting Countries,
Russia and other allied producing countries with respect to oil
production levels and announcements of potential changes to such
levels; our ability to enter into favorable contracts regarding
surface uses, access agreements and fee arrangements, including the
prices we are able to charge and the margins we are able to
realize; the initiation or outcome of potential litigation; our
ability to continue the payment of dividends; our ability to
successfully implement our growth plans, including through any
future acquisitions of acreage, including the Wolf Bone Ranch
acquisition, and/or introduction of new revenue streams; and any
changes in general economic and/or industry specific conditions,
among other things. These risks, as well as other risks associated
with LandBridge, are also more fully discussed in our filings with
the U.S. Securities and Exchange Commission. Except as required by
applicable law, LandBridge undertakes no obligation to update any
forward-looking statements or other statements included herein for
revisions or changes after this communication is made.
Non-GAAP Financial Measures
Reconciliations of forward-looking non-GAAP financial measures
to comparable GAAP measures are not available due to the challenges
and impracticability of estimating certain items, particularly
non-recurring gains or losses, unusual or non-recurring items,
income tax benefit or expense, or one-time transaction costs and
cost of revenue. We are unable to reasonably predict these because
they are uncertain and depend on various factors not yet known,
which could have a material impact on GAAP results for the guidance
period. Because of those challenges, a reconciliation of
forward-looking non-GAAP financial measures is not available
without unreasonable effort.
Pro Forma LQA Net Leverage
Calculated as total debt less cash and cash equivalents divided
by Last Quarter Annualized (“LQA”) EBITDA (including the estimated
LQA EBITDA contribution from the acquisition of surface acreage in
4Q24 in Winkler County (the "Winkler County Acquisition") and the
Wolf Bone Acquisition). A reconciliation of such non-GAAP financial
measure to its comparable GAAP measure is not available due to the
challenges and impracticability of determining certain items,
particularly nonrecurring gains or losses, unusual or non-recurring
items, income tax benefit or expense, or one-time transaction costs
and cost of revenue. We are unable to reasonably determine these
because they are uncertain and depend on various unknown factors,
which could have a material impact on GAAP results for the
applicable period. Because of those challenges, a reconciliation of
such non-GAAP financial measure is not available without
unreasonable effort.
No Offer or Solicitation
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, the securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241122337181/en/
Scott McNeely Chief Financial Officer LandBridge Company LLC
Contact@LandBridgeco.com Media Daniel Yunger / Nathaniel Shahan
Kekst CNC kekst-landbridge@kekstcnc.com
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