LandBridge Company LLC (LB) Business Profile

What it does

LandBridge owns and manages land in and around the Delaware Basin, an oil and natural gas producing region spanning Texas and New Mexico. Rather than primarily drilling for oil and gas itself, it earns money by allowing other businesses to use its land and resources. Its customers include energy producers, companies that handle water from oil and gas wells, and other infrastructure developers.

The company receives payments for activities such as transporting and handling produced water—the water brought to the surface alongside oil and gas. It also sells brackish water and caliche, a material used to build roads and well pads, and collects royalties when customers extract sand or water from its land. A smaller mineral position gives it a share of revenue from oil and gas production.

LandBridge actively seeks commercial uses for its acreage. These include energy infrastructure, waste facilities and projects outside oil and gas, such as power generation and digital infrastructure. Customers generally build and operate their own facilities on the land.

LandBridge was formed in 2023. Jason Long is its chief executive officer. The company shares a management team and financial sponsor with WaterBridge, a water infrastructure business that also operates on LandBridge property.

How it makes money

LandBridge’s main revenue streams are surface-use payments, resource sales and royalties, and oil and gas royalties. Surface-use agreements let customers put infrastructure or conduct operations on its acreage. The company receives royalties tied to gross revenue or the volume of infrastructure use, as well as fees for easements, roads, pipelines and other uses. Surface-use royalty and easement agreements typically have initial terms of five to 10 years.

For resource sales, LandBridge charges for brackish water used mainly in well completions and for caliche used in roads and well pads. Customers also operate sand mines and water wells on its land, paying royalties based on the quantities extracted. Certain surface-use agreements require customers to use resources from LandBridge’s land in their operations there.

Its mineral leases provide a lease bonus and a share of oil and gas sales. Apart from its mineral acreage, LandBridge does not own the mineral interests beneath its surface land. The company expects fee-based revenue to grow over time relative to oil and gas royalties.

LandBridge expects its revenue streams to recur over the long term, but contracts with significant customers generally do not require minimum land use or brackish water purchases. VTX Energy is an exception: it provided a minimum annual revenue commitment under a separate agreement.

Revenue was $199.1 million for the year ended December 31, 2025, and $70.9 million in the third quarter of 2026.

Customers and how it sells

LandBridge’s customers primarily develop and produce oil and natural gas or provide services supporting production. They contract with the company for land access, water, sand and other resources, as well as space for facilities and infrastructure. The company also works with businesses pursuing power and digital infrastructure projects.

Its land is concentrated in and around the Delaware Basin in Texas and New Mexico. At December 31, 2025, it owned or managed more than 315,000 surface acres across its Stateline, Northern and Southern positions. The Stateline position lies near the Texas–New Mexico border; the Northern and Southern positions serve other parts of the basin.

WaterBridge is both a related party and a customer. It shares LandBridge’s management team and financial sponsor, and pays for produced-water handling and other uses of the land. WaterBridge represented 25% of LandBridge’s revenue during the year ended December 31, 2025. The five largest customers—WaterBridge, VTX Energy, ConocoPhillips, EOG Resources and Occidental Petroleum—comprised 59% of total revenue for that year.

LandBridge and WaterBridge also have agreements with neighboring landowner Texas Pacific Land Corporation for reciprocal crossing rights and revenue sharing in part of the Stateline position.

Suppliers and costs

LandBridge’s model relies on customers constructing and operating facilities on its land rather than on a manufacturing operation. Its agreements generally make customers responsible for substantially all operating and capital expenditures associated with their activities. For example, customers build and operate sand mines at their own expense while LandBridge receives royalties and water fees.

The company seeks inflation escalators in surface-use agreements. It also has costs associated with running the business, servicing debt and investing in additional acreage. Land acquisitions can require capital even though customers fund the infrastructure they operate on the land.

In the third quarter of 2026, LandBridge reported capital expenditures of $600 thousand and approximately $266.8 million for acquisitions. At December 31, 2025, it had $570.7 million of total debt outstanding. Its liquidity needs include operating expenses, debt service, dividends and potential land purchases.

The supplied information does not identify a sole-source supplier. LandBridge had 4 employees in FY2025 and shares its management team with WaterBridge.

Competitive position

LandBridge competes with other landowners in the Permian Basin for a limited number of customers seeking sites for infrastructure and for access to resources such as brackish water. Competition depends on land location, reputation, pricing and legal and regulatory restrictions. New property owners in comparable areas can also become competitors, and LandBridge expects more competition as it enters additional business lines. No individual competitor is identified as such in the supplied material.

Its acreage is located near oil and gas operators and includes land and underground space that can support produced-water handling. Texas Pacific Land Corporation owns neighboring acreage and has agreements with LandBridge and WaterBridge covering crossings and revenue sharing. WaterBridge’s infrastructure and its shared management relationship with LandBridge also connect the company to oilfield activity.

Our reading: Land location and suitable underground space are meaningful competitive assets because customers need both access and places to handle produced water, but other landowners can offer sites and resources in the same region. Our reading: The WaterBridge relationship supports customer access and activity on LandBridge’s acreage, although the relationship also creates dependence on one customer. Our reading: The Texas Pacific agreements help address access across adjoining properties, but they do not eliminate competition for customers elsewhere.

Growth opportunities

LandBridge seeks to grow by acquiring acreage and finding additional commercial uses for land it already owns. Its active land-management strategy includes supporting oilfield infrastructure and resource extraction, while pursuing power generation, storage and digital infrastructure projects. The company generally expects customers to own and operate these projects rather than LandBridge doing so itself.

The company expects growing produced-water volumes in the Delaware Basin to require additional underground space for disposal. Its acquisitions during the third quarter of 2026 added undeveloped space outside overpressured injection zones near the state line, and LandBridge was in discussions with operators about using it. It was reported on 4 November 2026 that the company acquired approximately 25,000 acres during the third quarter of 2026.

Digital infrastructure is another development area. PowerBridge exercised an option on an initial 825-acre portion of the Alpha Digital Campus site, and LandBridge entered a long-term ground lease and a royalty agreement for power generated there. PowerBridge received initial permits and began construction on the first phase. LandBridge expects that phase to include more than 300 MW of the planned 2 GW campus, with first power delivery anticipated in the fourth quarter of 27.

LandBridge raised its full-year 2026 adjusted EBITDA expectation to between $220 million and $235 million, including expected contributions from recent acquisitions.

Structural risks

• Oilfield activity: Revenue depends substantially on exploration, development and production on or around LandBridge’s acreage. Commodity prices, drilling economics, access to capital and infrastructure can affect customers’ activity and their demand for land and resources.
• Customer concentration: A limited number of customers operate on and around the acreage. The loss of a major customer could adversely affect revenue and cash flow, while most significant customer contracts do not require minimum land use or water purchases.
• Geographic concentration: LandBridge’s operations are concentrated in the Permian Basin. It competes with other landowners for the limited number of businesses seeking sites and resources there.
• Environmental liability: Customers control their operations, but LandBridge may face strict, joint and several liability for contamination on land it owns and leases. Contractual protections and insurance may not cover every loss.
• Water and project development: Inadequate brackish water supplies could reduce sales and increase costs or capital spending. Growth also depends on customers’ infrastructure investment, permits, access to neighboring land and the company’s ability to acquire acreage and develop projects.
• Financing: Land acquisitions require capital, and LandBridge has debt to service. A significant revenue decline or rise in operating costs could reduce cash flow and liquidity and require alternative financing.

Bottom line

Our reading

Our reading: LandBridge is primarily a land-and-resource business that participates in oilfield activity through customer-funded infrastructure, fees and royalties rather than through direct operation of most projects. Its acreage and WaterBridge relationship support that model, but revenue remains exposed to a concentrated customer base and activity in one basin. Digital infrastructure offers another use for the land, while acquisitions require capital and add to financing demands.