LandBridge Announces Agreement to Acquire 46,000 Surface Acres in the Southern Delaware Basin
LandBridge (NYSE: LB) has announced an agreement to acquire the Wolf Bone Ranch, comprising 46,000 surface acres in the Southern Delaware Basin, for $245 million in cash from VTX Energy Partners. The acquisition includes land with existing produced water operations processing 300 MBbls/d and features a $25 million minimum annual revenue commitment from VTX Energy for five years. The transaction will be partially funded through a private placement of 5,830,419 Class A shares at $60.03 per share. The acquisition and private placement are expected to close in Q4 2024, increasing LandBridge's total holdings to approximately 272,000 surface acres.
LandBridge (NYSE: LB) ha annunciato un accordo per acquisire il Wolf Bone Ranch, che comprende 46.000 acri di superficie nel Southern Delaware Basin, per 245 milioni di dollari in contanti da VTX Energy Partners. L'acquisizione include terreni con operazioni esistenti di trattamento delle acque prodotte che processano 300 MBbls/giorno e prevede un impegno di entrate annuali minime di 25 milioni di dollari da VTX Energy per cinque anni. La transazione sarà parzialmente finanziata tramite un collocamento privato di 5.830.419 azioni di Classe A a 60,03 dollari per azione. Si prevede che l'acquisizione e il collocamento privato si chiuderanno nel quarto trimestre del 2024, aumentando le proprietà totali di LandBridge a circa 272.000 acri di superficie.
LandBridge (NYSE: LB) ha anunciado un acuerdo para adquirir el Wolf Bone Ranch, que comprende 46,000 acres de superficie en la Cuenca del Sur de Delaware, por 245 millones de dólares en efectivo de VTX Energy Partners. La adquisición incluye terrenos con operaciones de agua producida existentes que procesan 300 MBbls/día y cuenta con un compromiso de ingresos anuales mínimos de 25 millones de dólares por parte de VTX Energy durante cinco años. La transacción se financiará parcialmente a través de una colocación privada de 5,830,419 acciones de Clase A a 60.03 dólares por acción. Se espera que la adquisición y la colocación privada se cierren en el cuarto trimestre de 2024, aumentando las tenencias totales de LandBridge a aproximadamente 272,000 acres de superficie.
LandBridge (NYSE: LB)는 VTX Energy Partners로부터 2억 4,500만 달러에 46,000 에이커의 면적을 포함하는 Wolf Bone Ranch 인수 계약을 발표했습니다. 이 인수는 하루 300 MBbls를 처리하는 기존의 생산수 처리 시설이 있는 토지를 포함하며, VTX Energy로부터 5년 동안 연간 최소 2,500만 달러의 수익 약정을 특징으로 합니다. 이번 거래는 주당 60.03달러에 5,830,419주의 클래스 A 주식의 사모 배치를 통해 일부 자금을 조달할 예정입니다. 인수와 사모 배치는 2024년 4분기에 완료될 예정이며, LandBridge의 총 보유 면적은 약 272,000 에이커로 증가할 것입니다.
LandBridge (NYSE: LB) a annoncé un accord pour acquérir le Wolf Bone Ranch, qui comprend 46 000 acres dans le Southern Delaware Basin, pour 245 millions de dollars en espèces de VTX Energy Partners. L'acquisition comprend des terrains avec des opérations d'eau produite existantes traitant 300 MBbls/jour et présente un engagement de revenus annuels minimum de 25 millions de dollars de VTX Energy pour une période de cinq ans. La transaction sera partiellement financée par un placement privé de 5 830 419 actions de Classe A à 60,03 dollars par action. L'acquisition et le placement privé devraient être finalisés au quatrième trimestre 2024, augmentant les avoirs totaux de LandBridge à environ 272 000 acres.
LandBridge (NYSE: LB) hat eine Vereinbarung bekannt gegeben, die Wolf Bone Ranch zu erwerben, die 46.000 Acres im Southern Delaware Basin umfasst, für 245 Millionen Dollar in bar von VTX Energy Partners. Die Akquisition umfasst Land mit bestehenden Produktionswasseroperationen, die 300 MBbls/Tag verarbeiten, und sieht ein Mindestjahresumsatzengagement von 25 Millionen Dollar von VTX Energy über fünf Jahre vor. Die Transaktion wird teilweise durch eine Privatplatzierung von 5.830.419 Klasse-A-Aktien zu einem Preis von 60,03 Dollar pro Aktie finanziert. Der Erwerb und die Privatplatzierung sollen im vierten Quartal 2024 abgeschlossen werden, wodurch die Gesamtbestände von LandBridge auf etwa 272.000 Acres erhöht werden.
- Acquisition adds 46,000 strategic surface acres with existing cash flows
- Secured $25 million annual revenue commitment for 5 years from VTX Energy
- Current water operations processing 300 MBbls/d
- Seven miles of Highway 285 frontage offering commercial development potential
- Private placement raising approximately $350 million at $60.03 per share
- Significant cash outlay of $245 million for the acquisition
- Share dilution through private placement of 5,830,419 new Class A shares
Insights
This
The transaction structure is noteworthy: LandBridge is funding it through a combination of a
Key value drivers include existing water infrastructure handling 300 MBbls/d, 7+ miles of Highway 285 frontage for commercial development and potential digital infrastructure and renewable energy projects. The strategic location near the Waha Gas hub adds significant optionality for future monetization.
The Wolf Bone Ranch acquisition presents compelling real estate development potential beyond its energy infrastructure value. The 7+ miles of Highway 285 frontage represents prime commercial real estate in a rapidly developing energy corridor. Given the Permian Basin's continued growth, this frontage could support logistics facilities, industrial parks, or service-sector developments.
The largely contiguous nature of the 46,000 acres provides flexibility for master-planned development, while proximity to existing infrastructure reduces development costs. The potential for digital infrastructure and renewable energy projects adds significant optionality to the land's future use, particularly as the region sees increased demand for data centers and renewable energy facilities.
Acreage offers existing cash flows and significant future revenue growth opportunities
Increases LandBridge holdings to ~272,000 surface acres including previously announced transactions
Concurrent private placement to partially fund transaction
Located adjacent to LandBridge’s existing surface acreage in
“This acquisition demonstrates our continued commitment to our active land management strategy across the
LandBridge expects to fund the purchase price of the Acquisition with a portion of the net proceeds from the Private Placement (as defined below) and borrowings under its debt facilities.
LandBridge also today announced that it has entered into agreements to issue 5,830,419 Class A shares representing limited liability company interests, at a price of
The closing of the Private Placement is conditioned upon, and subject to, the closing of the Acquisition; however, the Acquisition is not conditioned upon, or subject to, the closing of the Private Placement. The closing of both the Acquisition and the Private Placement is expected to take place in the fourth quarter of 2024.
Goldman Sachs & Co. LLC is acting as the lead placement agent, and Barclays Capital Inc. is acting as a placement agent, in connection with the Private Placement.
In order to facilitate the Private Placement, Goldman Sachs & Co. LLC and Barclays Capital Inc., in their capacities as representatives of the several underwriters of LandBridge’s recent initial public offering, have agreed to waive the lock-up restrictions with respect to the securities offered by LandBridge pursuant to the Private Placement and the securities to be redeemed or repurchased pursuant to the Redemption.
Additional information regarding the details of the Acquisition can be found on the Investors section of LandBridge’s website at https://ir.landbridgeco.com/overview/default.aspx.
About LandBridge
LandBridge owns approximately 221,000 surface acres across
About Five Point
Five Point Energy is a private equity firm focused on building businesses within the environmental water management, surface management and sustainable infrastructure sectors. The firm was founded by industry veterans who have had successful careers investing in, building, and running midstream infrastructure companies. Five Point’s strategy is to buy and build assets, create companies, and grow them into sustainable enterprises with premier management teams and industry-leading E&P partners. Based in
About Vitol
Vitol is a leader in the energy sector with a presence across the spectrum: from oil to power, renewables and carbon. Vitol trades 7.3 mmbpd of crude oil and products, and charters around 6,000 sea voyages every year.
Vitol's counterparties include national oil companies, multinationals, leading industrial companies and utilities. Founded in
Cautionary Statement Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on LandBridge’s current beliefs, as well as current assumptions made by, and information currently available to, LandBridge, 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. These forward-looking statements include any statements regarding the Acquisition, including the ability of the parties to consummate the Acquisition in a timely manner, or at all, satisfaction of the conditions precedent to the consummation of the Acquisition, including the ability to secure regulatory approvals in a timely manner or at all, the expected benefits of the Acquisition, including expected accretion, integration plans, synergies, opportunities and anticipated future performance, and the Private Placement and the use of proceeds therefrom. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, many of which are beyond our control.
Forward-looking statements include, but are not limited to, strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts, including our estimated future financial performance. You should not place undue reliance on forward-looking statements. Although LandBridge believes that its plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, LandBridge may be unable to achieve such plans, intentions or expectations and actual results, and its performance or achievements may vary materially and adversely from those envisaged in this press 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, including WaterBridge and Desert Environmental LLC, in executing their business strategies, including their ability to construct infrastructure, attract customers and operate successfully on our land; our customers’ willingness and ability to develop our land or any potential acquired acreage to accommodate any future surface use developments, such as the Wolf Bone Ranch; 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 Organization of Petroleum Exporting Countries,
No Offer or Solicitation
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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Investor
Scott McNeely
Chief Financial Officer
LandBridge Company LLC
Contact@LandBridgeco.com
Media
Daniel Yunger / Nathaniel Shahan
Kekst CNC
kekst-landbridge@kekstcnc.com
Source: LandBridge Company LLC
FAQ
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