NYSE$LB

LandBridge Company LLC · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced third quarter results with revenue growth and declared initial quarterly cash dividend.

LandBridge Company LLC reported a strong third quarter in 2024, marked by a 60% year-over-year increase in revenue, reaching $28.5 million. The company also declared an initial quarterly cash dividend of $0.10 per share and initiated its FY24 and FY25 outlook. Adjusted EBITDA stood at $25.0 million, up 62% year-over-year, with a margin of 88%.

  • Revenues increased to $28.5 million, a 60% increase year-over-year.
  • Adjusted EBITDA reached $25.0 million, a 62% increase year-over-year, with an 88% margin.
  • The company acquired 1,280 surface acres in Winkler County, Texas, and signed a purchase agreement for an additional 5,800 acres in Lea County, New Mexico.
  • An initial cash dividend of $0.10 per share was announced.

Headline financials

Total Revenue

$28.5M

Previous: $17.8M+60.1%
EPS (adj)

-$0.04

Previous: $1.15-103.5%
Net Income Margin

-10.0%

No prior period
Adjusted EBITDA

$25M

Previous: $15.4M+62.4%
Adjusted EBITDA Margin

88.0%

Previous: 87.0%+1.1%
Operating Cash Flow Margin

26.0%

No prior period
Free Cash Flow Margin

25.0%

No prior period
Capital Expenditures

-$1.05M

No prior period
Net Income

-$2.8M

Previous: $16.6M-116.8%
Operating Income

$3.19M

Previous: $19.1M-83.3%
Gross Profit

$28.1M

Previous: $16.8M+67.1%
Stock-Based Comp

$11.6M

No prior period

Revenue & EPS history

LandBridge Company LLC · Revenue · Quarterly

$28.5M

Q3 2024+60.1%vs Q3 2023
Beat estimate in 3 of 6 quarters(50%)
ActualEstimate

Revenue by segment

LandBridge Company LLC · $19M total across 8 segments · Q1 2024

  • Easements & Surface Revenue
    $4.75M
  • Oil and Gas Royalties
    $4.19M
  • Resource Sales
    $3.42M
  • Surface Use Royalties - RP
    $2.61M
  • Resource Royalties
    $1.98M
  • Surface Use Royalties
    $1.6M
  • Easements & Surface - RP
    $383K
  • Resource Sales - RP
    $93K

Forward guidance

The Company initiated its outlook for full-year 2024 and full-year 2025, expecting Adjusted EBITDA to be between $95 million and $100 million for 2024, and between $140 million and $160 million for 2025.

Tailwinds

  • Higher than expected surface use royalties and revenues subsequent to increased development and higher than anticipated produced water volumes on our surface
  • Addition of a lease development agreement payment for the development of a data center on approximately 2,000 acres of our land in the southern Delaware Basin
  • Incremental contribution of our recent acquisitions
  • Initial solar facility contributions to surface use revenues
  • Growth of our surface use royalties through higher produced water volumes on our surface

Headwinds

  • Deferral of marketing a 250MW solar project into 2025 to better align with the execution of the lease development agreement in connection with the data center
  • Lower than anticipated resource sales and royalties
  • Impact of realized commodity prices on our oil and gas royalties
  • Updates to resources sales and royalties based on current timing and volume expectations
  • Updates to anticipated commodity pricing based on current regional pricing dynamics

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.3%

Avg return

Earnings day

+1.7%

Avg return

5 days after

-2.8%

Avg return

30 days after

43%

3 / 7 earnings

Positive

+22.7%

Q3 2024

Best reaction

-11.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+1.1%+5.8%
Q4 2025+13.8%+12.0%+10.0%
Q3 2025-10.5%-23.9%-32.3%
Q1 2025-11.3%+1.2%-5.9%
Q4 2024-6.1%+4.2%-8.9%
Q3 2024+22.7%+13.8%+4.2%
Q2 2024+1.0%+3.2%+7.7%
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022

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