LandBridge Logs Higher Profit | Rigzone

LandBridge Co LLC has reported $7.5 million in net profit for the second quarter, up from $6.46 million for the prior three-month period as revenue rose from $43.95 million to $47.53 million.

Houston, Texas-based LandBridge, an oil and gas-focused land management business operating primarily in the Delaware sub-basin of the Permian Basin, declared a dividend of $0.1 per share. That is payable on September 18 to shareholders of record as of September 4.

The sequential increase in revenue “was attributable to an increase in easements and other surface-related revenue of $8.7 million, partially offset by sequential decreases of $1.7 million in resource sales, $2.1 million in resource royalties, $0.7 million in surface use royalties and $0.7 million in oil and gas royalties”, LandBridge said in a quarterly report on its website.

Oil and gas royalties totaled $2.73 million, down from $3.39 million for Q1 2025 primarily due to net royalty production falling from 923 barrels of oil equivalent a day (boed) to 814 boed, LandBridge said.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for Q2 2025 totaled $31.05 million, up from $27.64 million for Q1 2025.

After adjustment for nonrecurring items, EBITDA landed at $42.45 million, compared to EUR 38.78 million for Q1 2025. “Adjusted EBITDA during the second quarter of 2025 reflects $9.0 million of non-cash charges related to LandBridge Holdings LLC incentive units and $2.2 million of non-cash charges related to restricted stock units”, LandBridge said.

Operating income was $28.5 million for Q2 2025, up from $25.04 million for Q1 2025. Operating activities generated $53.25 million in net cash, up from $15.91 million for Q1 2025.

LandBridge had $20.35 million in cash and cash equivalents at the end of June, while current assets totaled $44.14 million. Current liabilities stood at $10.36 million. Total liquidity was $95.3 million.

“In anticipation of the execution of the DBR Solar opportunity with a large public renewable energy developer and operator, we are adjusting our guidance for fiscal year 2025 to an adjusted EBITDA range between $160 million and $180 million”, LandBridge said. “This adjustment is primarily driven by an expectation that the majority of revenue associated with the DBR Solar opportunity will be recognized following this year”.

Chief executive Jason Long said, “Over the past year since our July 2024 IPO [initial public offering], we have realized strong growth, established and deepened relationships with our customers, and grown our fee-based revenue mix”.

“LandBridge is well-positioned to continue delivering compelling results for our shareholders across our 277,000 surface acres in the heart of the Permian Basin. Specifically, LandBridge’s differentiated pore space solution enhances long-term asset value by enabling scalable, distributed water management solutions that align with the Delaware Basin’s evolving regulatory framework”, Long added.

Chief financial officer Scott McNeely said, “LandBridge is executing on a highly diversified and low-capex business model, resulting in high EBITDA and cash flow margins. We have only just begun to capitalize on the potential of our surface acreage and we continue to evaluate highly attractive opportunities to increase revenue across industrial uses”.

Last Wednesday, LandBridge announced a 10-year surface use and pore space reservation agreement to support Devon Energy Corp.’s operations on the New Mexico side of the Delaware basin. The deal gives Devon 300,000 barrels per day (bpd) of pore space capacity on LandBridge’s East Stateline Ranch and Speed Ranch. The pore space reservation will start in the second quarter of 2027. The deal also includes an obligation to Devon of at least 175,000 bpd of produced water.

To contact the author, email jov.onsat@rigzone.com