LandBridge Company LLC Announces Second Quarter Results
Delivers revenue growth of 20% year-over-year
Second Quarter 2024 Financial Highlights
-
Revenues of
$26.0 million , up 20% year-over-year -
Net loss of
$57.7 million (1) - Net loss margin of 222%(1)
-
Adjusted EBITDA(2) of
$23.4 million , up 24% year-over-year - Adjusted EBITDA Margin(2) of 90%
-
Cash flows from operating activities of
$16.0 million -
Free Cash Flow(2) of
$15.7 million - Operating cash flow margin of 62%
- Free Cash Flow Margin(2) of 60%
(1) Net loss and net loss margin include a non-cash expense of
(2) Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are non-GAAP financial measures. See “Comparison of Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP.
Other Recent Events
-
Closed the acquisitions of
East Stateline Ranch andSpeed Ranch , adding an additional 103,000 and 34,000 surface acres, respectively, growing the total surface owned by the Company to approximately 220,000 acres - Completed the Company’s initial public offering (inclusive of the full exercise of the underwriter’s option to purchase additional shares) and concurrent private placement
-
Entered into a non-binding letter of intent (“LOI”) for the development of a data center on our land in
Reeves County, Texas
Second Quarter 2024 Consolidated Financial Information
Revenue for the second quarter of 2024 was
Adjusted EBITDA was
Net loss margin was 222% in the second quarter of 2024 as compared to net income margin of 206% in the second quarter of 2023. (1) Adjusted EBITDA margin was 90% in the second quarter of 2024 as compared to 89% in the first quarter of 2024 and 87% in the second quarter of 2023. (2)
Diversified Revenue Streams
Surface Use Royalties and Revenue: Generated revenues of
Resources Sales and Royalties: Generated revenues of
Oil and Gas Royalties: Generated revenues of
Robust Free Cash Flow Generation
Cash flow from operations for the second quarter of 2024 was
Net cash used in investing activities during the second quarter of 2024 was
Net cash from financing activities during the second quarter of 2024 included
Strong Balance Sheet with Ample Liquidity
Total cash and cash equivalents were
As of
Total liquidity was
Ongoing Commercial Progress
On
Conference Call and Webcast Information
The Company will hold a conference call on
The conference call can also be accessed by dialing (800) 715-9871 (or (646) 307-1963 for international participants) and provide the Conference ID 4907698. The telephone replay can be accessed by dialing (800) 770-2030 and providing the Conference ID 4907698. The telephone replay will be available starting shortly after the call through
About LandBridge
LandBridge owns approximately 220,000 surface acres across
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on LB’s beliefs, as well as assumptions made by, and information currently available to, LB, 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. Forward-looking statements include, but are not limited to, references to the LOI and the completion of the arrangements contemplated therein, strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts. You should not place undue reliance on forward-looking statements. Although LB believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, LB may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may vary materially and adversely from those envisaged in this news 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, WaterBridge and Desert Environmental, in executing their business strategies, including their ability to construct infrastructure, attract customers and operate successfully on our land; our customers’ ability to develop our land or any potential acquired acreage to accommodate any future surface use developments; 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
The historical financial information presented below reflects only the historical financial results of our predecessor,
SECOND QUARTER 2024 RESULTS
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil and gas royalties |
|
$ |
4,475 |
|
|
$ |
5,034 |
|
|
$ |
8,660 |
|
|
$ |
8,626 |
|
Resource sales |
|
|
3,618 |
|
|
|
6,401 |
|
|
|
7,034 |
|
|
|
11,717 |
|
Resource sales - Related party (Note 8) |
|
|
179 |
|
|
|
404 |
|
|
|
272 |
|
|
|
1,488 |
|
Easements and other surface-related revenues |
|
|
5,088 |
|
|
|
1,881 |
|
|
|
9,842 |
|
|
|
3,353 |
|
Easements and other surface-related revenues - Related party (Note 8) |
|
|
2,376 |
|
|
|
3,274 |
|
|
|
2,759 |
|
|
|
3,857 |
|
Surface use royalties |
|
|
3,304 |
|
|
|
2,232 |
|
|
|
4,902 |
|
|
|
3,624 |
|
Surface use royalties - Related party (Note 8) |
|
|
3,667 |
|
|
|
895 |
|
|
|
6,275 |
|
|
|
1,774 |
|
Resource royalties |
|
|
2,139 |
|
|
|
1,601 |
|
|
|
4,117 |
|
|
|
3,171 |
|
Resource royalties - Related party (Note 8) |
|
|
1,107 |
|
|
|
- |
|
|
|
1,107 |
|
|
|
- |
|
Total revenues |
|
|
25,953 |
|
|
|
21,722 |
|
|
|
44,968 |
|
|
|
37,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Resource sales-related expense |
|
|
643 |
|
|
|
999 |
|
|
|
1,316 |
|
|
|
2,079 |
|
Other operating and maintenance expense |
|
|
611 |
|
|
|
751 |
|
|
|
1,129 |
|
|
|
1,255 |
|
General and administrative expense (income) |
|
|
73,823 |
|
|
|
(27,459 |
) |
|
|
75,983 |
|
|
|
(15,038 |
) |
Depreciation, depletion, amortization and accretion |
|
|
2,112 |
|
|
|
2,109 |
|
|
|
4,256 |
|
|
|
3,833 |
|
Operating (loss) income |
|
|
(51,236 |
) |
|
|
45,322 |
|
|
|
(37,716 |
) |
|
|
45,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
6,280 |
|
|
|
562 |
|
|
|
9,164 |
|
|
|
1,280 |
|
Other income |
|
|
- |
|
|
|
- |
|
|
|
(241 |
) |
|
|
(15 |
) |
Income (loss) from operations before taxes |
|
|
(57,516 |
) |
|
|
44,760 |
|
|
|
(46,639 |
) |
|
|
44,216 |
|
Income tax expense |
|
|
137 |
|
|
|
96 |
|
|
|
238 |
|
|
|
199 |
|
Net (loss) income |
|
$ |
(57,653 |
) |
|
$ |
44,664 |
|
|
$ |
(46,877 |
) |
|
$ |
44,017 |
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
24,646 |
|
|
$ |
8,892 |
|
|
$ |
37,823 |
|
Accounts receivable, net |
|
|
13,441 |
|
|
|
8,452 |
|
|
|
12,383 |
|
Related party receivable |
|
|
2,862 |
|
|
|
1,347 |
|
|
|
1,037 |
|
Prepaid expenses and other current assets |
|
|
594 |
|
|
|
685 |
|
|
|
1,035 |
|
Total current assets |
|
|
41,543 |
|
|
|
19,376 |
|
|
|
52,278 |
|
|
|
|
|
|
|
|
|
|
|
|||
Non-current assets: |
|
|
|
|
|
|
|
|
|
|||
Property, plant and equipment, net |
|
|
629,812 |
|
|
|
256,612 |
|
|
|
203,018 |
|
Intangible assets, net |
|
|
28,048 |
|
|
|
28,611 |
|
|
|
28,642 |
|
Other assets |
|
|
11,060 |
|
|
|
5,758 |
|
|
|
5,011 |
|
Total non-current assets |
|
|
668,920 |
|
|
|
290,981 |
|
|
|
236,671 |
|
Total assets |
|
$ |
710,463 |
|
|
$ |
310,357 |
|
|
$ |
288,949 |
|
|
|
|
|
|
|
|
|
|
|
|||
Liabilities and member's equity |
|
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
$ |
194 |
|
|
$ |
545 |
|
|
$ |
200 |
|
Related party payable |
|
|
498 |
|
|
|
433 |
|
|
|
453 |
|
Accrued liabilities |
|
|
12,984 |
|
|
|
4,343 |
|
|
|
4,945 |
|
Current portion of long-term debt |
|
|
35,148 |
|
|
|
20,245 |
|
|
|
20,339 |
|
Other current liabilities |
|
|
1,535 |
|
|
|
1,218 |
|
|
|
1,163 |
|
Total current liabilities |
|
|
50,359 |
|
|
|
26,784 |
|
|
|
27,100 |
|
|
|
|
|
|
|
|
|
|
|
|||
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|||
Long-term debt |
|
|
360,845 |
|
|
|
118,452 |
|
|
|
108,343 |
|
Other long-term liabilities |
|
|
2,817 |
|
|
|
2,788 |
|
|
|
2,759 |
|
Total non-current liabilities |
|
|
363,662 |
|
|
|
121,240 |
|
|
|
111,102 |
|
Total liabilities |
|
|
414,021 |
|
|
|
148,024 |
|
|
|
138,202 |
|
|
|
|
|
|
|
|
|
|
|
|||
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Member's equity |
|
|
296,442 |
|
|
|
162,333 |
|
|
|
150,747 |
|
Total liabilities and member's equity |
|
$ |
710,463 |
|
|
$ |
310,357 |
|
|
$ |
288,949 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
Three Months Ended, |
|
|
Six Months Ended, |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net (loss) income |
|
$ |
(57,653 |
) |
|
$ |
10,776 |
|
|
$ |
44,664 |
|
|
$ |
(46,877 |
) |
|
$ |
44,017 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation, depletion, amortization and accretion |
|
|
2,112 |
|
|
|
2,145 |
|
|
|
2,109 |
|
|
|
4,256 |
|
|
|
3,833 |
|
Amortization of deferred financing fees |
|
|
139 |
|
|
|
65 |
|
|
|
- |
|
|
|
204 |
|
|
|
- |
|
Amortization of debt issuance costs |
|
|
390 |
|
|
|
129 |
|
|
|
- |
|
|
|
519 |
|
|
|
- |
|
Share-based compensation |
|
|
71,762 |
|
|
|
810 |
|
|
|
(28,736 |
) |
|
|
72,572 |
|
|
|
(17,501 |
) |
Other |
|
|
- |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
(18 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accounts receivable |
|
|
(3,796 |
) |
|
|
3,931 |
|
|
|
(5,838 |
) |
|
|
136 |
|
|
|
(4,697 |
) |
Related party receivable |
|
|
(1,515 |
) |
|
|
(310 |
) |
|
|
1,408 |
|
|
|
(1,825 |
) |
|
|
14 |
|
Prepaid expenses and other assets |
|
|
159 |
|
|
|
323 |
|
|
|
(360 |
) |
|
|
482 |
|
|
|
(292 |
) |
Accounts payable |
|
|
(413 |
) |
|
|
407 |
|
|
|
176 |
|
|
|
(6 |
) |
|
|
629 |
|
Related party payable |
|
|
53 |
|
|
|
(20 |
) |
|
|
12 |
|
|
|
33 |
|
|
|
(175 |
) |
Other current liabilities |
|
|
4,805 |
|
|
|
(1,041 |
) |
|
|
(994 |
) |
|
|
3,764 |
|
|
|
(1,460 |
) |
Net cash provided by operating activities |
|
|
16,043 |
|
|
|
17,215 |
|
|
|
12,445 |
|
|
|
33,258 |
|
|
|
24,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions |
|
|
(375,438 |
) |
|
|
(55,072 |
) |
|
|
- |
|
|
|
(430,510 |
) |
|
|
- |
|
Capital expenditures |
|
|
(369 |
) |
|
|
(89 |
) |
|
|
(780 |
) |
|
|
(458 |
) |
|
|
(2,400 |
) |
Proceeds from disposal of assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11 |
|
Net cash used in investing activities |
|
|
(375,807 |
) |
|
|
(55,161 |
) |
|
|
(780 |
) |
|
|
(430,968 |
) |
|
|
(2,389 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Contributions from member |
|
|
120,000 |
|
|
|
- |
|
|
|
- |
|
|
|
120,000 |
|
|
|
- |
|
Distributions to member |
|
|
- |
|
|
|
- |
|
|
|
(10,000 |
) |
|
|
- |
|
|
|
(23,000 |
) |
Proceeds from term loan |
|
|
265,000 |
|
|
|
- |
|
|
|
- |
|
|
|
265,000 |
|
|
|
- |
|
Proceeds from revolver |
|
|
- |
|
|
|
15,000 |
|
|
|
- |
|
|
|
15,000 |
|
|
|
- |
|
Repayments on term loan |
|
|
(5,000 |
) |
|
|
(5,000 |
) |
|
|
(6,625 |
) |
|
|
(10,000 |
) |
|
|
(8,250 |
) |
Debt issuance costs |
|
|
(3,404 |
) |
|
|
- |
|
|
|
- |
|
|
|
(3,404 |
) |
|
|
- |
|
Deferred offering costs |
|
|
(961 |
) |
|
|
(870 |
) |
|
|
- |
|
|
|
(1,831 |
) |
|
|
- |
|
Other financing activities, net |
|
|
(117 |
) |
|
|
(115 |
) |
|
|
(72 |
) |
|
|
(232 |
) |
|
|
(78 |
) |
Net cash provided by (used in) financing activities |
|
|
375,518 |
|
|
|
9,015 |
|
|
|
(16,697 |
) |
|
|
384,533 |
|
|
|
(31,328 |
) |
Net decrease in cash and cash equivalents |
|
|
15,754 |
|
|
|
(28,931 |
) |
|
|
(5,032 |
) |
|
|
(13,177 |
) |
|
|
(9,367 |
) |
Cash and cash equivalents and restricted cash - beginning of period |
|
|
8,892 |
|
|
|
37,823 |
|
|
|
21,016 |
|
|
|
37,823 |
|
|
|
25,351 |
|
Cash and cash equivalents - end of period |
|
$ |
24,646 |
|
|
$ |
8,892 |
|
|
$ |
15,984 |
|
|
$ |
24,646 |
|
|
$ |
15,984 |
|
Comparison of Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are supplemental non-GAAP measures that we use to evaluate current, past and expected future performance. Although these non-GAAP financial measures are important factors in assessing our operating results and cash flows, they should not be considered in isolation or as a substitute for net income or gross margin or any other measures presented under GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin are used to assess the financial performance of our assets over the long term to generate sufficient cash to return capital to equity holders or service indebtedness. We define Adjusted EBITDA as net income (loss) before interest; taxes; depreciation, amortization, depletion and accretion; share-based compensation; non-recurring transaction-related expenses and other non-cash or non-recurring expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period, and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA and Adjusted EBITDA Margin because these amounts can vary substantially from company to company within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired.
The following table sets forth a reconciliation of net income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated.
|
Three Months Ended, |
|
|||||||||
|
|
|
|
|
|
|
|
|
|||
|
(Unaudited) |
|
|||||||||
|
(In thousands) |
|
|||||||||
Net (loss) income |
$ |
(57,653 |
) |
|
$ |
10,776 |
|
|
$ |
44,664 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|||
Depreciation, depletion, amortization and accretion |
|
2,112 |
|
|
|
2,145 |
|
|
|
2,109 |
|
Interest expense, net |
|
6,280 |
|
|
|
2,884 |
|
|
|
562 |
|
Income tax expense |
|
137 |
|
|
|
101 |
|
|
|
96 |
|
EBITDA |
|
(49,124 |
) |
|
|
15,906 |
|
|
|
47,431 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|||
Share-based compensation (1) |
|
71,762 |
|
|
|
810 |
|
|
|
(28,735 |
) |
Transaction-related expenses (2) |
|
774 |
|
|
|
191 |
|
|
|
230 |
|
Other (3) |
|
- |
|
|
|
- |
|
|
|
3 |
|
Adjusted EBITDA |
$ |
23,412 |
|
|
$ |
16,907 |
|
|
$ |
18,929 |
|
Net (loss) income margin |
|
(222 |
%) |
|
|
57 |
% |
|
|
206 |
% |
Adjusted EBITDA Margin |
|
90 |
% |
|
|
89 |
% |
|
|
87 |
% |
(1) Share-based compensation represents the non-cash charge for the periodic fair market value changes associated with liability awards for which the cumulative vested amount is recognized ratably over the applicable vesting period. Incentive units were issued to certain members of management by |
|
||||||||||
(2) Transaction-related expenses consists of non-capitalizable transaction costs associated with both completed or attempted acquisitions, debt amendments and entity structuring charges. |
|
||||||||||
(3) Other consists primarily of other non-cash items. |
|
Free Cash Flow and Free Cash Flow Margin are used to assess our ability to repay our indebtedness, return capital to our shareholders and fund potential acquisitions without access to external sources of financing for such purposes. We define Free Cash Flow as cash flow from operating activities less investment in capital expenditures. We define Free Cash Flow Margin as Free Cash Flow divided by total revenues.
We believe Free Cash Flow and Free Cash Flow Margin are useful because they allow for an effective evaluation of both our operating and financial performance, as well as the capital intensity of our business, and subsequently the ability of our operations to generate cash flow that is available to distribute to our shareholders, reduce leverage or support acquisition activities.
The following table sets forth a reconciliation of cash flows from operating activities determined in accordance with GAAP to Free Cash Flow and Free Cash Flow Margin, respectively, for the periods indicated.
|
Three Months Ended, |
|
|||||||||
|
|
|
|
|
|
|
|
|
|||
|
(Unaudited) |
|
|||||||||
|
(In thousands) |
|
|||||||||
Net cash provided by operating activities |
$ |
16,043 |
|
|
$ |
17,215 |
|
|
$ |
12,445 |
|
Net cash used in investing activities |
|
(375,807 |
) |
|
|
(55,161 |
) |
|
|
(780 |
) |
Cash (used in) provided by operating and investing activities |
|
(359,764 |
) |
|
|
(37,946 |
) |
|
|
11,665 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|||
Acquisitions |
|
375,438 |
|
|
|
55,072 |
|
|
|
- |
|
Proceeds from disposal of assets |
|
- |
|
|
|
- |
|
|
|
- |
|
Free Cash Flow |
$ |
15,674 |
|
|
$ |
17,126 |
|
|
$ |
11,665 |
|
Operating cash flow margin (1) |
|
62 |
% |
|
|
91 |
% |
|
|
57 |
% |
Free Cash Flow Margin |
|
60 |
% |
|
|
90 |
% |
|
|
54 |
% |
(1) Operating cash flow data is calculated by dividing net cash provided by operating activities by total revenue. |
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807971287/en/
Kekst CNC
kekst-landbridge@kekstcnc.com
Chief Financial Officer
832-703-1433
scott.mcneely@landbridgeco.com
Source: