LandBridge Completes Delaware Basin Acquisition from VTX Energy

Landbridge Co. LLC has completed the acquisition of about 46,000 largely contiguous surface acres on the Texas side of the Delaware Basin from a subsidiary of VTX Energy Partners LLC for a cash consideration of $245 million.

The acreage, known as the Wolf Bone Ranch, “strategically expands LandBridge’s position in Reeves and Pecos Counties, Texas, an important region for both oil and natural gas production, and provides access to the Waha Gas market hub”, the Five Point Energy LLC-backed company said in a statement.

“The land generates significant cash flows from existing third-party operations and is strategically located to capture potential future growth opportunities from renewable energy projects, commercial real estate and digital infrastructure development”, added LandBridge, a land management business focusing on the Permian sub-basin.

“As part of the acquisition, LandBridge secured a minimum annual revenue commitment of $25 million for each of the next five years from VTX Energy and its affiliates that includes surface operations, brackish water used for completions and produced water handling royalties”.

Houston, Texas-based LandBridge has raised its adjusted EBITDA guidance for 2025 to $170 million–$190 million to account for expected earnings accretion from the acquisition.

It funded the purchase with $200 million of proceeds from a private placement and $45 million of borrowings.

The placement of Class A shares represented limited liability company interests at $60.03 per unit.

“Approximately $150 million of proceeds from the Private Placement were used to purchase units representing membership interests in DBR Land Holdings LLC held by LandBridge Holdings LLC, an affiliate of LandBridge’s financial sponsor, Five Point Energy”, LandBridge said.

“A corresponding number of Class B shares representing limited liability company interests in LandBridge held by LandBridge Holdings LLC were contemporaneously canceled”.

“Following the closing of the Private Placement and the Repurchase, LandBridge’s management team and Five Point Energy hold an approximate 70 percent ownership interest in LandBridge and its operating subsidiaries through LandBridge Holdings LLC”, it added.

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