The Offering
The management plans to contribute all of the net proceeds from the offering to DBR Land Holdings, the operating company (OpCo), in exchange for its newly issued units. Of that, $100 million will be used for repaying outstanding borrowings under a credit facility. The remainder of the proceeds will be used mainly to make a distribution to LandBridge Holdings, which will directly control the company following the offering.
Company
LandBridge Company was formed in September 2023 and owns around 22,000 surface acres in the Delaware sub-basin of the oil-rich Permian basin, the most active region for energy exploration in the US. As part of its expansion program, last month the company acquired around 103,000 surface acres in Loving and Winkler Counties in Texas, and Lea County in New Mexico. In addition, another 34,000 surface acres were acquired in Lea County in New Mexico, and Andrews County in Texas.
For fiscal 2023, LandBridge Company reported revenues of $92.9 million on a proforma basis. In the previous year, the company’s predecessor generated revenues of $51.78 million. Adjusted EBITDA was $82.37 million in FY23 when the net income margin came in at 55%. At the end of March 2024, the company had a total debt outstanding of $400.4 million, on a pro forma basis, mainly reflecting recent acquisitions of various assets.