Executive Summary

LandBridge delivered strong Q1 2025 results: revenue $44.0M (+131% YoY, +20% QoQ), adjusted EBITDA $38.8M (+129% YoY, +22% QoQ), and adjusted EBITDA margin 88% . Non-oil-and-gas royalty streams comprised ~92% of total revenue, insulating the model from commodity price volatility .
Versus consensus: revenue slightly beat at $44.0M vs $43.1M estimate, but EPS missed at $0.22 vs $0.36 estimate, largely due to $11.1M non-cash share-based compensation in the quarter; management reaffirmed FY25 adjusted EBITDA guidance of $170–$190M . Values retrieved from S&P Global*.
Free cash flow was $15.8M (36% margin), compressed QoQ due to higher accounts receivable driven by an 85% increase in combined surface use and resource revenues; timing expected to normalize .
Strategic catalysts: Wolf Bone Ranch accelerated produced water royalties (MBbls/d up to 1,433 from 831 QoQ), and WaterBridge’s Speedway Pipeline could add up to ~500,000 bbl/d of capacity and ~$30M+ annual cash flow once fully online (first phase expected around year-end) . A $0.10 dividend was declared, payable June 19 .

What Went Well and What Went Wrong

What Went Well
- Revenue and EBITDA growth were triple-digit YoY with industry-leading margins (88% adjusted EBITDA margin), underscoring the low-capex, fee-based model .
- Non-oil-and-gas royalties rose to ~92% of revenue, reducing direct commodity exposure; “we benefit from diversified revenue streams…not directly tied to oil and gas prices” .
- Produced water royalty volumes jumped >70% QoQ helped by Wolf Bone Ranch; management reiterated resilience and demand strength across Delaware Basin water handling .
What Went Wrong
- EPS missed consensus, with a major driver being $11.1M non-cash share-based compensation (including $8.9M Incentive Units)—dragging net income margin to 35% vs 57% in Q1 2024 .
- Oil & gas royalties fell 24% QoQ on lower net royalty production (1,199 boe/d in Q4 2024 to 923 boe/d in Q1 2025) .
- Free cash flow compressed QoQ to $15.8M on AR timing, linked to an 85% increase in combined surface use and resource revenues; management flagged the impact as short term .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$19.0	$36.5	$44.0
Net Income ($USD Millions)	$10.8	$8.2	$15.5
Adjusted EBITDA ($USD Millions)	$16.9	$31.7	$38.8
Net Income Margin (%)	57%	22%	35%
Adjusted EBITDA Margin (%)	89%	87%	88%
Cash From Operations ($USD Millions)	$17.2	$26.9	$15.9
Free Cash Flow ($USD Millions)	$17.1	$26.7	$15.8

Segment breakdown:

Revenue Category ($USD Millions)	Q1 2024	Q4 2024	Q1 2025
Surface Use Royalties & Revenue	$9.3	$25.5	$26.2
Resource Sales & Royalties	$5.5	$6.6	$14.4
Oil & Gas Royalties	$4.2	$4.5	$3.4

KPIs and balance sheet:

KPI	Q4 2024	Q1 2025
Produced Water Royalty Volumes (MBbls/d)	831	1,433
Net Royalty Production (boe/d)	1,199	923
Total Liquidity ($USD Millions)	$107.0	$84.9
Cash & Equivalents ($USD Millions)	$37.0	$14.9
Available Revolver ($USD Millions)	$70.0	$70.0
Debt Outstanding ($USD Millions)	$385.0	$379.3

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($USD Millions)	FY 2025	$170–$190	$170–$190	Maintained
Dividend per Class A share	Q2 2025 payment	$0.10 (Q4 2024 declared)	$0.10 payable June 19, 2025	Maintained

Notes: Management reiterated drivers for FY25 outlook including acquisitions, initial solar contribution, higher produced water volumes, and updated commodity pricing assumptions .

Earnings Call Themes & Trends

Topic	Q3 2024 (Previous Mentions)	Q4 2024	Q1 2025 (Current Period)	Trend
Produced Water Demand & Volumes	Emphasis on fee-based shift; water volumes a core growth driver	Step-up expected from Kraken line and Devon volumes; low to mid-double-digit growth through 2025	>70% QoQ increase; Speedway open season; demand strong near to medium term	Strengthening
Data Centers / Digital Infra	LOI signed; site selection deposit plan disclosed	$8M received; phased rental and profit interest on power; multi-year ramp	12–18 month update window; arms race momentum; power needs broaden beyond data centers	Progressing; broader power theme
Solar / Renewables	Solar adjacent to data center discussed	DESRI agreements; 2–3 years to operations; mid-to-high single-digit $M EBITDA annually	Initial solar facility contributions included in FY25 outlook	Building pipeline
Commodity Exposure & Macro	Fee-based mix at 90% reduces sensitivity	FY25 guide assumes no meaningful ramps; minimal oil price sensitivity	~92% non-mineral royalties; macro volatility noted but model resilient	Resilient
Regulatory/Seismicity/Water Handling	—	Texas legislature water recycling and NM disposal dynamics monitored; LandBridge well-positioned	Pipeline and pore space strategy to manage sustainable disposal; large contiguous surface advantageous	Constructive positioning
M&A / Land Acquisitions	Accretive deals at ~5x EBITDA; synergy with WaterBridge	Continued focus; robust pipeline; prudent balance sheet	Wolf Bone Ranch underpinning $25M minimum annual revenue commitment (5 yrs)	Accretive and scaling

Management Commentary

“We had a strong start to the year, delivering triple-digit revenue and adjusted EBITDA growth…while maintaining an adjusted EBITDA margin of 88%.” — CEO Jason Long .
“Non-oil and gas royalty revenue streams…accounted for approximately 92% of overall revenue during the first quarter.” — CEO Jason Long .
“Our first quarter revenues increased to approximately $44 million, up 20% sequentially and 131% year-over-year…Adjusted EBITDA $38.8 million…free cash flow of approximately $15.8 million.” — CFO Scott McNeely .
“Speedway…could be up to roughly 500,000 barrels a day of incremental water handling capacity, which would…generate approximately $30-plus million a year of cash flow once…up and running…first phase…around year-end.” — CFO Scott McNeely .
“Wolf Bone Ranch contributed to a greater than 70% quarter-over-quarter increase in produced water royalty volumes…underpinned by a minimum annual revenue commitment of $25 million for each of the next 5 years.” — CEO Jason Long .

Q&A Highlights

Permian activity and macro: Management sees no change in development plans among key operators; non-mineral royalty mix (~92%) insulates revenue from commodity swings .
Speedway Pipeline: Up to ~500 kbbl/d capacity; phased ramp beginning Q4 2025 with surface damage payments in H2 2025 and royalties ramping through H1 2026; ~$30M+ annual cash flow potential at scale .
Data center update: 12–18 months from November 2024 deal to next milestone; significant interest persists; broader West Texas power demand presents incremental opportunities beyond digital infra .
Water growth vs oil: Expect water growth to eclipse oil growth in core Stateline area due to deeper benches and flatter PDP declines .
Desalination: Pilot projects underway via WaterBridge/Five Point; cost curve improving but not yet scalable; LandBridge agnostic and benefits via land royalties .

Estimates Context

Metric	Q1 2025 Consensus	Q1 2025 Actual	Surprise
Revenue ($USD Millions)	$43.125*	$44.0	+$0.875M (beat)
Primary EPS ($USD)	$0.3615*	$0.2166*	-$0.145 (miss)
EPS – # of Estimates	3*	—	—
Revenue – # of Estimates	5*	—	—

Values retrieved from S&P Global*.
Context: The EPS shortfall is consistent with reported $11.1M non-cash share-based compensation (including $8.9M Incentive Units), depressing GAAP earnings; adjusted EBITDA performance and margin remained robust .

Key Takeaways for Investors

Business model resilience: ~92% fee-based/non-mineral royalties and minimal capex sustain 88% EBITDA margins and buffer commodity volatility .
Revenue beat, EPS miss: Topline slightly exceeded consensus, while EPS was pressured by non-cash comp; focus on EBITDA/FCF trajectory and AR normalization into Q2–Q3 . Values retrieved from S&P Global*.
Water handling growth: Wolf Bone Ranch and WaterBridge projects (Speedway) support structurally higher produced water volumes and future royalty cash flows; first pipeline phase expected around year-end .
Guidance intact: FY25 adjusted EBITDA $170–$190M reaffirmed; monitor solar milestone payments and incremental surface revenues as additional upside levers .
Near-term trading catalysts: Speedway outcome announcement (contracts being finalized), Q2 AR/cash flow normalization, and any updates on data center or solar prepayments .
Capital allocation: Dividend $0.10 maintained; liquidity $84.9M with $70M revolver available; modest debt reduction QoQ; disciplined M&A remains core growth engine .
Medium-term thesis: Scaling water infrastructure royalties, diversified land monetization (digital infra, solar, power), and active land management support multi-year FCF expansion with limited capital needs .

LandBridge Co LLC (LB)·Q1 2025 Earnings Summary