What factors drove the changes in LandBridge's revenue and profit?

What were the key takeaways from LandBridge’s earnings call?

Did LandBridge beat or miss consensus estimates last quarter?

What were the key takeaways from LandBridge's earnings call?

What does LandBridge do and what are its main business segments?

What is the market's earnings forecast for LandBridge next quarter?

What guidance did LandBridge's management provide for the next earnings period?

What is the revenue and EPS growth rate for LandBridge year over year?

- **Revenue Growth**: Q3 revenue up 7% sequentially to $50.8 million, with EBITDA of $44.9 million (88% margin).
- **Strategic Acquisitions**: $20 million EBITDA contribution from 1918 Ranch acquisition in 2026, plus solar and gas processing projects.
- **Pore Space Leadership**: 300,000+ contiguous acres and partnerships like WaterBridge position LandBridge to capitalize on Delaware Basin's 9 million bbl/day produced water shortfall.
- **Balance Sheet Strength**: $108.3 million liquidity, 2.1x net leverage, and $0.10 quarterly dividend.
- **2026 Outlook**: Surface use royalties and new projects poised for accelerated growth, with EBITDA expectations exceeding prior guidance.

**【CEO Summary Section】**
- **Revenue and EBITDA Growth**: Q3 revenue increased 7% sequentially to $50.8 million, with adjusted EBITDA rising 6% to $44.9 million. This marks the sixth consecutive quarter of growth since going public.
- **Strategic Acquisitions**: Finalized the 1918 Ranch & Royalty acquisition, expected to contribute $20 million in EBITDA from 2026 onward. The deal includes 37,500 acres in Loving and Reeves counties, enhancing pore space and alternative energy potential.
- **New Projects**: Signed a 250 MW solar project lease in Reeves County and a long-term lease with ONEOK for a natural gas processing facility in Loving County.
- **Pore Space Management**: Emphasized controlled, contiguous acreage (300,000+ acres) to avoid pore pressure challenges, supported by partnerships like WaterBridge and alignment with Texas Railroad Commission guidelines.
- **Diversification**: Expanded into power infrastructure and data centers, with active discussions with hyperscalers and energy transition developers.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP revenue of $50.8 million (78% YoY growth), adjusted EBITDA of $44.9 million (88% margin). Free cash flow was $33.7 million, with capital expenditures of $1.2 million.
- **Balance Sheet**: Total liquidity of $108.3 million, net borrowings of $369.3 million (down 1.6% QoQ), and net leverage ratio of 2.1x (down from 2.4x).
- **Capital Allocation**: Prioritized M&A (e.g., 1918 Ranch), balance sheet strength (targeting 2.0-2.5x leverage), and shareholder returns (Q3 dividend of $0.10 per share).
- **Guidance**: Reaffirmed full-year 2025 EBITDA guidance of $165-175 million, with confidence in 2026 growth from surface use royalties and new projects.

**【Q&A Highlights】**
- **1918 Acquisition**: EBITDA contribution of $20 million in 2026, with potential upside from 900,000 bbl/day pore space capacity and clean energy infrastructure. Expected 3-4 year timeline for full monetization.
- **Power & Data Centers**: Active discussions with hyperscalers and energy developers, leveraging land, power partnerships, and fiber access. First solar project milestone payments expected as development progresses.
- **Produced Water Shortfall**: Projected 9 million bbl/day shortfall in Delaware Basin by 2035 due to pore space constraints, highlighting demand for LandBridge's differentiated, unencumbered acreage. Devon Energy's minimum volume commitment agreement exemplifies forward-thinking operator demand.
- **Surface Use Royalties**: Strong growth driven by WaterBridge's BPX development and new easements, with 2026 expectations exceeding prior forecasts.


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