LandBridge Co LLC (NYSE: LB)

LandBridge Co LLC is a holding company specializing in the ownership and management of surface acreage in the Delaware Basin, a sub-region of the Permian Basin in Texas and New Mexico. The company focuses on monetizing its land assets by facilitating energy development, infrastructure projects, and resource extraction. As of December 31, 2025, LandBridge owned or managed over 315,000 surface acres, positioning itself as a critical enabler for oil and natural gas exploration, produced water handling, renewable energy projects, and digital infrastructure. Its strategy centers on active land management to maximize long-term revenue and free cash flow while minimizing capital expenditures.

LandBridge generates revenue through three primary streams: surface use royalties and revenues, resource sales and royalties, and oil and gas royalties. Surface use royalties are earned from fees charged to customers for accessing its land for activities such as oil and natural gas development, pipeline infrastructure, produced water handling, and renewable energy projects. Resource sales include the sale of brackish water and caliche, primarily used in well completions and construction, while royalties are collected from sand and water extraction. Oil and gas royalties are derived from the company’s ownership of approximately 4,400 gross mineral acres, where it receives a share of production revenues. The company’s revenue model is largely fee-based, reducing exposure to commodity price volatility and ensuring stable cash flows.

The company operates through the following segments:

• Surface Use Royalties and Revenues: This segment encompasses fees earned from customers for the use of LandBridge’s surface acreage. Activities include oil and natural gas development, produced water transportation and handling, pipeline and electrical infrastructure, digital infrastructure, and non-hazardous oilfield reclamation. The company enters into surface use agreements (SUAs) and produced water handling facility leases, typically with five- to 10-year terms, generating royalties based on gross revenues or volumetric usage of infrastructure. Easements and rights-of-way also contribute to this segment through fixed fees and renewal payments.

• Resource Sales and Royalties: This segment involves the sale of resources extracted from LandBridge’s land, including brackish water and caliche, which are sold to customers for well completions and construction. The company also earns royalties from sand mining operations, where it receives a fixed fee per ton of sand extracted, and from brackish water extraction. These resources are critical for oil and natural gas operations, and LandBridge benefits from long-term contracts with producers and midstream companies.

• Oil and Gas Royalties: LandBridge owns mineral interests underlying a portion of its surface acreage, from which it earns royalties on oil and natural gas production. These royalties are based on a percentage of production revenues, less taxes and transportation costs. While this segment currently contributes a smaller portion of total revenue, it provides additional diversification and recurring income.

LandBridge holds a strategic position in the Permian Basin, the most active oil and natural gas development region in the United States. Its land is concentrated in high-value areas along the Texas-New Mexico state border, where regulatory and geological conditions favor energy and infrastructure development. The company’s competitive advantages include its expansive, contiguous acreage, strong relationships with major energy producers, and a symbiotic partnership with WaterBridge, a leading water midstream company. This relationship provides LandBridge with visibility into industry trends and infrastructure development opportunities, enhancing its ability to monetize its land. Key competitors include other large landowners in the Permian Basin, such as Texas Pacific Land Corporation (TPL), though LandBridge’s active management strategy and diversified revenue streams set it apart.

LandBridge serves a diverse customer base of large, well-capitalized businesses in the energy and infrastructure sectors. Its top five customers for 2025 included WaterBridge, VTX Energy, ConocoPhillips, EOG Resources, and Occidental Petroleum, which collectively accounted for 59% of total revenue. The company’s customers span oil and natural gas producers, midstream operators, renewable energy developers, and digital infrastructure providers. These relationships are underpinned by long-term contracts, though most agreements do not include minimum volume commitments, making revenue dependent on customer activity levels.