LandBridge Company LLC Reports 131% Revenue Growth to $43.9 Million in Q1 2025

LandBridge Company LLC reported significant financial growth in its first quarter of 2025, with total revenues reaching $43.9 million, a 131% increase compared to $19.0 million in the same period of 2024. The company’s net income also rose to $15.5 million, marking a 43% increase from $10.8 million year-over-year. The net income margin for the quarter was 35%, down from 57% in the previous year, while adjusted EBITDA increased by 129% to $38.8 million, reflecting a robust adjusted EBITDA margin of 88%.

The substantial revenue growth was primarily driven by a significant increase in surface use royalties, which surged by 314% to $17.4 million, largely due to heightened produced water handling and associated skim oil royalties. Additionally, resource sales rose by 111% to $7.4 million, supported by a 14% increase in brackish water sales volume. The company also experienced a 250% increase in resource royalties, totaling $7.0 million, attributed to acquisitions made in 2024. However, oil and gas royalties decreased by 19% to $3.4 million, influenced by lower production volumes and commodity prices.

In terms of operational developments, LandBridge completed the acquisition of approximately 3,000 surface acres in Lea County, New Mexico, for $17.0 million in cash. This acquisition is part of the company's strategy to expand its land holdings in the Delaware Basin, a key area for oil and natural gas exploration. As of March 31, 2025, LandBridge owned approximately 276,000 surface acres, positioning itself favorably for future growth in energy and infrastructure development.

The company’s financial position remains strong, with total assets of $1.0 billion and a working capital surplus of $31.8 million as of March 31, 2025. However, cash and cash equivalents decreased to $14.9 million from $37.0 million at the end of 2024, primarily due to increased accounts receivable related to the surge in revenues. LandBridge's total debt stood at $379.6 million, with a weighted average interest rate of 7.82% for the quarter.

Looking ahead, LandBridge anticipates continued growth driven by the ongoing demand for energy and infrastructure development in the Permian Basin. The company is well-positioned to capitalize on advancements in alternative energy technologies, which require significant surface acreage and supporting infrastructure. Despite the challenges posed by market volatility and geopolitical factors, LandBridge remains optimistic about its ability to generate long-term revenue and free cash flow for its shareholders.