LandBridge Company LLC Announces Second Quarter Results
LandBridge Company (NYSE: LB) reported Q2 2024 financial results, showing 20% year-over-year revenue growth to $26.0 million. The company posted a net loss of $57.7 million, primarily due to a $71.8 million non-cash expense related to incentive units. Adjusted EBITDA increased 24% to $23.4 million, with a 90% margin. LandBridge completed acquisitions of East Stateline Ranch and Speed Ranch, expanding its total surface ownership to approximately 220,000 acres. The company also closed its IPO and entered a non-binding LOI for a data center development. LandBridge's diversified revenue streams include surface use royalties, resource sales, and oil and gas royalties. The company generated $16.0 million in operating cash flow and $15.7 million in free cash flow.
LandBridge Company (NYSE: LB) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando una crescita dei ricavi del 20% rispetto all'anno precedente, pari a $26,0 milioni. L'azienda ha registrato una perdita netta di $57,7 milioni, principalmente a causa di una spesa non monetaria di $71,8 milioni legata a unità di incentivazione. L'EBITDA rettificato è aumentato del 24% a $23,4 milioni, con un margine del 90%. LandBridge ha completato l'acquisizione di East Stateline Ranch e Speed Ranch, ampliando la sua superficie totale a circa 220.000 acri. L'azienda ha anche concluso la sua IPO ed è entrata in una LOI non vincolante per lo sviluppo di un centro dati. I flussi di ricavi diversificati di LandBridge includono royalties per l'uso del suolo, vendite di risorse e royalties su petrolio e gas. L'azienda ha generato $16,0 milioni di flusso di cassa operativo e $15,7 milioni di flusso di cassa libero.
LandBridge Company (NYSE: LB) reportó resultados financieros del segundo trimestre de 2024, mostrando un crecimiento de ingresos del 20% interanual, alcanzando $26.0 millones. La compañía registró una Pérdida neta de $57.7 millones, principalmente debido a un gasto no monetario de $71.8 millones relacionado con unidades de incentivos. El EBITDA ajustado aumentó un 24% a $23.4 millones, con un margen del 90%. LandBridge completó las adquisiciones de East Stateline Ranch y Speed Ranch, ampliando su propiedad total a aproximadamente 220.000 acres. La compañía también cerró su IPO e ingresó en una LOI no vinculante para el desarrollo de un centro de datos. Las fuentes de ingresos diversificadas de LandBridge incluyen regalías por uso de superficie, ventas de recursos y regalías de petróleo y gas. La compañía generó $16.0 millones en flujo de caja operativo y $15.7 millones en flujo de caja libre.
LandBridge Company (NYSE: LB)는 2024년 2분기 재무 결과를 발표하며 전년 대비 20% 매출 성장을 2,600만 달러로 보고했습니다. 이 회사는 행동 단위와 관련된 7,180만 달러의 비현금 비용으로 인해 5,770만 달러의 순손실을 기록했습니다. 조정된 EBITDA는 24% 증가해 2,340만 달러에 이르며, 90%의 마진을 기록했습니다. LandBridge는 East Stateline Ranch와 Speed Ranch를 인수해 총 소유 면적을 약 22만 에이커로 확장했습니다. 회사는 또한 IPO를 완료하고 데이터 센터 개발을 위한 비구속 LOI를 체결했습니다. LandBridge의 다각화된 수익원에는 표면 사용 로열티, 자원 판매 및 석유 및 가스 로열티가 포함됩니다. 이 회사는 1,600만 달러의 운영 현금 흐름 및 1,570만 달러의 자유 현금 흐름을 생성했습니다.
La société LandBridge (NYSE: LB) a publié ses résultats financiers du deuxième trimestre 2024, montrant une croissance des revenus de 20% par rapport à l'année précédente, atteignant 26,0 millions de dollars. L'entreprise a affiché une perte nette de 57,7 millions de dollars, principalement due à des dépenses non monétaires de 71,8 millions de dollars liées à des unités d'incitation. Le EBITDA ajusté a augmenté de 24% pour atteindre 23,4 millions de dollars, avec une marge de 90%. LandBridge a finalisé les acquisitions d'East Stateline Ranch et de Speed Ranch, élargissant sa propriété totale à environ 220 000 acres. L'entreprise a également cloturé son IPO et a signé une LOI non contraignante pour le développement d'un centre de données. Les différentes sources de revenus de LandBridge comprennent les redevances d'utilisation du sol, les ventes de ressources et les redevances pétrolières et gazières. L'entreprise a généré 16,0 millions de dollars de flux de trésorerie d'exploitation et 15,7 millions de dollars de flux de trésorerie disponible.
Die LandBridge Company (NYSE: LB) hat die finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben und zeigt ein Umsatzwachstum von 20% im Jahresvergleich auf 26,0 Millionen Dollar. Das Unternehmen verzeichnete einen netto Verlust von 57,7 Millionen Dollar, hauptsächlich aufgrund einer nicht liquiden Ausgabe von 71,8 Millionen Dollar im Zusammenhang mit Anreizeinheiten. Das bereinigte EBITDA stieg um 24% auf 23,4 Millionen Dollar, mit einer Marge von 90%. LandBridge schloss die Übernahmen von East Stateline Ranch und Speed Ranch ab und erweiterte seinen gesamten Flächenbesitz auf etwa 220.000 Acres. Das Unternehmen hat auch seinen IPO abgeschlossen und eine nicht verbindliche LOI für die Entwicklung eines Datenzentrums unterzeichnet. Die diversifizierten Einnahmequellen von LandBridge umfassen Oberflächen- und Rohstoffverkäufe sowie Öl- und Gaslizenzen. Das Unternehmen erzielte 16,0 Millionen Dollar an operativem Cashflow und 15,7 Millionen Dollar an freiem Cashflow.
- Revenue growth of 20% year-over-year to $26.0 million
- Adjusted EBITDA increased 24% to $23.4 million with 90% margin
- Acquisition of East Stateline Ranch and Speed Ranch, expanding total surface ownership to 220,000 acres
- Successful completion of IPO, strengthening balance sheet and financial flexibility
- Strong free cash flow generation of $15.7 million
- Entered non-binding LOI for data center development, potentially diversifying revenue streams
- Net loss of $57.7 million, primarily due to $71.8 million non-cash expense
- Net loss margin of 222%
- Increased borrowings from $140.0 million to $400.0 million
Insights
LandBridge's Q2 2024 results show strong revenue growth of
The Adjusted EBITDA of
Recent acquisitions have expanded LandBridge's surface acreage to approximately 220,000 acres, positioning it for future growth. The company's strong balance sheet with
LandBridge's strategic position in the Permian Basin, particularly the Delaware sub-basin, is a significant advantage. This region is the most active for oil and gas exploration in the U.S., suggesting strong ongoing demand for LandBridge's services.
The company's diversified revenue streams - including surface use royalties, resource sales and oil & gas royalties - provide resilience against sector-specific fluctuations. The 55% sequential increase in Surface Use Royalties and Revenue is particularly noteworthy, indicating growing demand for the company's land resources.
The non-binding LOI for a data center development on LandBridge's land in Reeves County, Texas, signals potential for diversification beyond energy sector clients. This could open up new revenue opportunities and reduce dependence on oil and gas industry dynamics.
The transition of LandBridge Holdings incentive units to equity award accounting from July 1, 2024, is a significant change. This shift should reduce future non-cash expenses that have impacted net income, potentially leading to more stable financial reporting.
The non-binding LOI for the data center development involves a potential related-party transaction, given the involvement of funds affiliated with LandBridge's financial sponsor. The company's plan to form a Conflicts Committee for approval demonstrates good corporate governance practices, but investors should monitor this closely to ensure fair terms.
LandBridge's recent IPO brings new regulatory and reporting obligations. The company will need to maintain robust compliance and disclosure practices to meet public company standards and investor expectations.
Delivers revenue growth of
Second Quarter 2024 Financial Highlights
-
Revenues of
$26.0 million 20% year-over-year -
Net loss of
$57.7 million -
Net loss margin of
222% (1) -
Adjusted EBITDA(2) of
$23.4 million 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 and Speed 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
Jason Long, Chief Executive Officer, stated, “Our land is strategically located in the heart of the Permian Basin, ideally situated to support energy production, digital infrastructure, and broader industrial development. Through our active land management strategy, we believe we can grow the long-term value of our more than 220,000 surface acres and its resources, while generating multiple fee- and royalty-based revenue streams. We look forward to an exciting second half of the year.”
Scott McNeely, Chief Financial Officer of the Company, said, “In the second quarter we demonstrated the advantages of our capital-efficient and highly diversified business model by delivering strong double-digit revenue growth and high margins. Our recently completed IPO has strengthened LandBridge’s balance sheet, enhanced our financial flexibility, and further differentiated our platform as we accelerate our strategy to create compelling long-term value for shareholders.”
Second Quarter 2024 Consolidated Financial Information
Revenue for the second quarter of 2024 was
Adjusted EBITDA was
Net loss margin was
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 June 30, 2024, the Company had available borrowing capacity under its revolving credit facility of approximately
Total liquidity was
Ongoing Commercial Progress
On July 3, 2024, a subsidiary of the Company entered into the non-binding LOI regarding a long-term ground lease on our land in
Conference Call and Webcast Information
The Company will hold a conference call on Thursday, August 8, 2024 at 8:00 a.m. Central Time to discuss second quarter results. A live webcast of the conference call will be available on the Investors section of the Company’s website at http://www.landbridgeco.com. To listen to the live broadcast, go to the site at least 10-15 minutes prior to the scheduled start time in order to register and install any necessary audio software.
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 August 22, 2024.
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 Organization of Petroleum Exporting Countries,
The historical financial information presented below reflects only the historical financial results of our predecessor, DBR Land Holdings LLC, and does not give pro forma effect to the East Stateline Ranch acquisition or the Speed Ranch acquisition. Each of the East Stateline Ranch acquisition and the Speed Ranch acquisition is reflected in the historical financial information solely from and after its respective completion.
SECOND QUARTER 2024 RESULTS
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
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
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|||
|
|
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, |
|
||||||||||||||
|
|
June 30, 2024 |
|
|
March 31, 2024 |
|
|
June 30, 2023 |
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|||||
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, |
|
|||||||||
|
June 30, 2024 |
|
|
March 31, 2024 |
|
|
June 30, 2023 |
|
|||
|
(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 WaterBridge NDB LLC , and changes to the incentive units’ fair market values are driven by changes in period end valuations of WaterBridge NDB LLC and its subsidiaries, the issuance of new incentive units at WaterBridge NDB LLC, and the vesting of previously issued incentive units. This expense is a non-cash charge for DBR Land Holdings LLC and represents a liability at WaterBridge NDB LLC that impacts WaterBridge NDB LLCs’ equity ownership. It is neither a liability of DBR Land Holdings LLC nor potentially dilutive to LandBridge equity owners. The allocation of expense included in the consolidated results is recognized as a deemed non-cash contribution to or distribution from member’s equity of DBR Land Holdings LLC. |
|
||||||||||
(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, |
|
|||||||||
|
June 30, 2024 |
|
|
March 31, 2024 |
|
|
June 30, 2023 |
|
|||
|
(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/
Daniel Yunger / Nathaniel Shahan
Kekst CNC
kekst-landbridge@kekstcnc.com
Scott McNeely
Chief Financial Officer
LandBridge Company LLC
832-703-1433
scott.mcneely@landbridgeco.com
Source: LandBridge Company LLC
FAQ
What was LandBridge's (LB) revenue for Q2 2024?
How much surface acreage does LandBridge (LB) own after recent acquisitions?
What was LandBridge's (LB) Adjusted EBITDA for Q2 2024?
Did LandBridge (LB) generate positive free cash flow in Q2 2024?
