LandBridge Company LLC, a leader in land and resource management, has finalized its acquisition of 5,800 contiguous surface acres in Lea County, New Mexico. This pivotal move expands the company’s presence in the Delaware Basin, one of the most lucrative oil and gas exploration regions in the United States. The acquired land includes vital water infrastructure assets, such as produced water handling facilities and supply pipelines, which are expected to drive revenue growth through new developments and enhanced operational efficiency.

LandBridge has also revealed plans to leverage this acquisition alongside its affiliate, WaterBridge Operating LLC, to establish a water distribution hub in New Mexico. This initiative aligns with the company’s strategic approach to integrating water management with broader industrial applications, reinforcing its position as a key player in the Delaware sub-basin.

Acquisitions bolster Landbridge’s portfolio

This deal is part of a broader expansion strategy that includes LandBridge’s purchase of surface acreage in Winkler County, Texas, and the forthcoming acquisition of the Wolf Bone Ranch in Reeves County, Texas. Together, these transactions represent approximately 53,080 acres acquired in the fourth quarter of 2024 alone.

Once the Wolf Bone Ranch deal is finalized, LandBridge’s total landholdings will exceed 272,000 surface acres, spanning New Mexico and Texas. The Wolf Bone Ranch, strategically located near the Waha Gas market hub, is particularly valuable due to its existing water infrastructure capable of managing 300,000 barrels of produced water daily.

Financially, these acquisitions are poised to generate significant returns. LandBridge estimates a 20% increase in free cash flow per share by 2025, alongside an adjusted EBITDA projection of $170–190 million for the same period. The company has secured funding for these purchases through a combination of equity and debt financing, including a private placement of 5.8 million Class A shares, raising approximately $200 million.

The role of Wolf Bone Ranch in future growth

The Wolf Bone Ranch acquisition will not only expand LandBridge’s geographic reach but also secure steady revenue streams through a five-year minimum revenue commitment of $25 million from VTX Energy Partners LLC, the property’s seller. This agreement underscores the strategic value of the acquisition, as the ranch is positioned at a critical intersection of oil and gas exploration and transportation routes.

Industry analysts highlight the significance of LandBridge’s acquisitions within the Permian Basin, an area known for its rich natural resources and high production activity. By integrating its land management expertise with advanced infrastructure solutions, the company is setting a benchmark for sustainable resource utilization and industrial development in the region.

Financial stability and future outlook

Despite the scale of its recent transactions, LandBridge remains financially robust. Post-acquisition, the company anticipates a pro forma liquidity of $113 million and a manageable net leverage ratio of 2.7x. Its ownership structure, with Five Point Energy LLC holding a 70% stake, further underscores its stability and strategic direction.

LandBridge’s aggressive expansion in the Delaware Basin positions it to capitalize on the region’s vast opportunities for oil, gas, and water infrastructure development. As the company continues to strengthen its portfolio, it is well-placed to lead innovation in land management and sustainable energy solutions.

  Delaware Basin, Five Point Energy LLC, LandBridge Company LLC, Permian Basin, VTX Energy Partners LLC, WaterBridge Operating LLC