{"success":true,"data":{"pressRelease":{"id":"110138","rtpr_id":"nBw42ZGdma","ticker":"LB","exchange":"NYSE","all_tickers":["LB"],"title":"LandBridge Announces Second Quarter 2026 Results","author":"Business Wire","published_at":"2026-08-05T20:10:00.207Z","article_body":"LandBridge Announces Second Quarter 2026 Results\n\nDelivers record second quarter revenue of $66.8 million, representing growth\nof 41% year-over-year and 31% quarter-over-quarter\n\nDeclares quarterly cash dividend of $0.12 per share\n\nLandBridge Company LLC (NYSE: LB; NYSE TX: LB) (the “Company,” or\n“LandBridge”) today announced its financial and operating results for the\nsecond quarter ended June 30, 2026.\n\nSecond Quarter 2026 Financial Highlights\n\n\n * Revenues of $66.8 million, representing an increase of 41% year-over-year and\n31% quarter-over-quarter\n\n * Net income((1)) of $31.0 million, representing an increase of 68%\nyear-over-year and 74% quarter-over-quarter\n\n * Net income margin((1)) of 46%\n\n * Adjusted EBITDA((2)) of $59.8 million, representing an increase of 41%\nyear-over-year and 33% quarter-over-quarter\n\n * Adjusted EBITDA Margin((2)) of 89%\n\n * Cash flows from operating activities of $41.4 million, representing an\nincrease of 11% year-over-year and 1% quarter-over-quarter\n\n * Free Cash Flow((2)) of $40.2 million, representing an increase of 11%\nyear-over-year\n\n * Operating cash flow margin of 62%\n\n * Free Cash Flow Margin((2)) of 60%\n\n * Announced quarterly cash dividend of $0.12 per share\n\nRecent Milestones\n\n\n * LandBridge continues to see growing and accelerated momentum in the West Texas\ndigital infrastructure thesis and in particular our unique offering of\nstrategic land and water resources, regional expertise, and extensive\nfacilitating network. LandBridge is currently under LOI, option, or engaged in\nlate-stage negotiations with seven power and digital infrastructure\ncounterparties, representing more than 10 GW of power generation potential\nacross our footprint.\n\n * Entered into agreement to acquire approximately 560 acres of fee surface\nunderlying the Northern Delaware Basin Landfill in Lea County, New Mexico, for\ntotal consideration of $20 million\n\n * Announced that the Board has unanimously approved the Company’s conversion\nand redomicile from a Delaware limited liability company to a Texas\ncorporation following the recommendation of the previously announced special\ncommittee of independent directors of the Board\n\nJason Long, Chief Executive Officer of LandBridge, stated, “We are proud to\nannounce another strong quarter of growth, reinforcing the strength and\ndurability of our business model, along with the commercial firepower we\ncontinue to bring to bear across our footprint. We remain excited about the\ncontinued growth trajectory ahead of us, both from the oil and gas and\nproduced water industry and from the longer-term digital infrastructure\nopportunity, where momentum is building quickly, as evidenced by our robust\nand growing list of non-binding commercial agreements and incremental interest\nacross our acreage position.\"\n\nScott McNeely, Chief Financial Officer of LandBridge, said, “Our second\nquarter results underscore the durability of a high-margin, asset-light\nbusiness model that continues to convert growth across multiple revenue\nstreams into outsized free cash flow, a dynamic we expect to continue as the\nbusiness grows in scale. Equally significant, our Board's approval to\nredomicile in Texas as a corporation reflects a deliberate step toward broader\nindex eligibility and reinforces our disciplined focus on long-term\nshareholder value creation.\"\n\nSecond Quarter 2026 Consolidated Financial Information\n\nRevenue for the second quarter of 2026 was $66.8 million as compared to $51.0\nmillion in the first quarter of 2026 and $47.5 million in the second quarter\nof 2025. The sequential increase was attributable to growth across multiple\nkey revenue streams, including increases of $0.1 million in resource sales and\nroyalties, $15.2 million in surface use royalties and revenues, $0.6 million\nin oil and gas royalties, partially offset by a decrease of $0.1 million in\nother revenue. Net income for the second quarter of 2026 was $31.0 million as\ncompared to $17.9 million in the first quarter of 2026 and a net income of\n$18.5 million in the second quarter of 2025.((1))\n\nAdjusted EBITDA was $59.8 million in the second quarter of 2026 as compared to\n$44.9 million in the first quarter of 2026 and $42.5 million in the second\nquarter of 2025.\n\nNet income margin was 46% in the second quarter of 2026 as compared to 35% in\nthe first quarter of 2026 and a net income margin of 39% in the second quarter\nof 2025.((1)) Adjusted EBITDA margin was 89% in the second quarter of 2026 as\ncompared to 88% in the first quarter of 2026 and 89% in the second quarter of\n2025.((2))\n\nDiversified Revenue Streams\n\nSurface Use Royalties and Revenue: Generated revenues of $52.2 million in the\nsecond quarter of 2026 as compared to $37.0 million in the first quarter of\n2026 and $34.2 million in the second quarter of 2025. Surface Use Royalties\nand Revenue increased $15.2 million sequentially, primarily driven by an\nincrease in produced water handling volumes across our acreage as well as an\noverall increase in commercial activity on our land.\n\nResources Sales and Royalties: Generated revenues of $11.1 million in the\nsecond quarter of 2026 as compared to $11.0 million in the first quarter of\n2026 and $10.6 million in the second quarter of 2025. Revenue from Resource\nSales and Royalties increased $0.1 million sequentially, primarily driven by\nincreases in water sales on our legacy acreage.\n\nOil and Gas Royalties: Generated revenues of $3.6 million in the second\nquarter of 2026 as compared to $3.0 million in the first quarter of 2026 and\n$2.7 million in the second quarter of 2025. Revenue from Oil and Gas Royalties\nincreased $0.6 million sequentially, primarily driven by higher oil prices in\nthe quarter.\n\nFree Cash Flow Generation\n\nCash flow from operations for the second quarter of 2026 was $41.4 million as\ncompared to $41.1 million in the first quarter of 2026 and $37.3 million in\nthe second quarter of 2025. Free Cash Flow for the second quarter of 2026 was\n$40.2 million as compared to $40.9 million in the first quarter of 2026 and\n$36.1 million in the second quarter of 2025.((2))\n\nCapital expenditures for the second quarter of 2026 were $1.1 million and net\ncash used in investing activities during the second quarter of 2026 was $11.3\nmillion, which included approximately $10.2 million of acquisition\nexpenditures related to bolt-on acquisitions executed in the second quarter.\nNet cash used in financing activities during the second quarter of 2026 was\n$20.0 million.\n\nStrong Balance Sheet with Ample Liquidity\n\nTotal liquidity was $269.8 million as of June 30, 2026.\n\nAs of June 30, 2026, the Company had approximately $230.0 million of available\nborrowing capacity under its revolving credit facility.\n\nTotal cash and cash equivalents were $39.8 million as of June 30, 2026, as\ncompared to $29.7 million as of March 31, 2026. The Company had $545.2 million\nof borrowings outstanding as of June 30, 2026, versus $545.5 million\noutstanding as of March 31, 2026.\n\nSubsequent to the quarter on August 4, 2026, DBR Land Holdings LLC, a\nsubsidiary of the Company (\"OpCo\"), entered into an amendment (the\n\"Amendment\") to its 2025 revolving credit agreement (the \"2025 Revolving\nCredit Facility\"). Pursuant to the Amendment, lender commitments were\nincreased by $100.0 million, from $275.0 million to $375.0 million, through\nthe exercise in full of the incremental commitment capacity available under\nthe 2025 Revolving Credit Facility. Concurrently, the Amendment re-established\nincremental commitment capacity of up to an additional $100.0 million, which\nmay be exercised by OpCo from time to time subject to the receipt of\nadditional lender commitments and satisfaction of the other conditions set\nforth in the 2025 Revolving Credit Facility. Giving effect to the foregoing,\nlender commitments under the 2025 Revolving Credit Facility may be increased\nto up to $475.0 million.\n\nIn addition, the Amendment reduced the applicable margins under the 2025\nRevolving Credit Facility by 0.25% (25 basis points) at each level of the\npricing grid. As amended, Term SOFR Loans bear interest at Term SOFR for the\napplicable tenor plus a leverage-based applicable margin between 1.75% and\n2.75% per annum, and Base Rate Loans bear interest at the applicable base rate\nplus a leverage-based applicable margin between 0.75% and 1.75% per annum.\n\nExcept as described above, the other material terms of the 2025 Revolving\nCredit Facility, including the Maturity Date, the commitment fee and the\nfinancial and other covenants, remained unchanged.\n\nRecent Transactions\n\nSubsequent to the second quarter on August 4, 2026, LandBridge agreed to\nacquire approximately 560 acres of fee surface underlying the Northern\nDelaware Basin Landfill in Lea County, New Mexico, for total consideration of\n$20 million. The transaction is expected to close in the third quarter of 2026\nconcurrently with the acquisition of the NDB Landfill by WaterBridge, subject\nto customary closing conditions and receipt of all required consents and\napprovals. In connection with the land acquisition, WaterBridge and LandBridge\nwill enter into a long-term surface use agreement for the NDB Landfill. The\nland acquisition, including the valuation and the surface use agreement, was\napproved by a Conflicts Committee of the LandBridge Board of Directors\nconsisting entirely of independent directors.\n\nSecond Quarter 2026 Dividend\n\nThe Board declared a dividend on our Class A shares of $0.12 per share,\npayable on September 10, 2026 to shareholders of record as of August 27, 2026,\nand a corresponding required cash distribution to OpCo unitholders.\n\n2026 Outlook\n\nThe Company reaffirms its outlook for fiscal year 2026, with Adjusted EBITDA\nexpected to be between $210 million and $230 million.\n\nReconciliations of forward-looking non-GAAP financial measures to comparable\nGAAP measures are not available due to the challenges and impracticability of\nestimating certain items, particularly non-recurring gains or losses, unusual\nor non-recurring items, income tax benefit or expense, or one-time transaction\ncosts and cost of revenue. We are unable to reasonably predict these because\nthey are uncertain and depend on various factors not yet known, which could\nhave a material impact on GAAP results for the guidance period. Because of\nthose challenges, a reconciliation of forward-looking non-GAAP financial\nmeasures is not available without unreasonable effort.\n ((1) )Q2 2026 net income and net income margin include a non-cash expense of $11.2 million attributable to share-based compensation, of which $9.0 million is attributable to management units issued by LandBridge Holdings LLC. Any actual cash expense associated with such management units will be borne solely by LandBridge Holdings LLC and not the Company. The management units are not dilutive of public ownership. \n   \n ((2)) Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are non-GAAP financial measures. See “Comparison of Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP. \n\n\nQuarterly Report on Form 10-Q\n\nOur financial statements and related footnotes are available in our Quarterly\nReport on Form 10-Q for the quarter ended June 30, 2026, which is expected to\nbe filed with the U.S. Securities and Exchange Commission (“SEC”) on\nAugust 5, 2026.\n\nConference Call and Webcast Information\n\nThe Company will hold a conference call on Thursday, August 6, 2026, at 10:00\na.m. Central Time to discuss second quarter results. A live webcast of the\nconference call will be available on the Events and Presentations section of\nthe LandBridge Investor Relations website. To listen to the live broadcast, go\nto the site at least 10-15 minutes prior to the scheduled start time to\nregister and install any necessary audio software.\n\nTo access the live conference call, participants must pre-register online at\nhttps://events.q4inc.com/analyst/893270445?pwd=4vCD3ryz\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F893270445%3Fpwd%3D4vCD3ryz&esheet=54584300&newsitemid=20260805637776&lan=en-US&anchor=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F893270445%3Fpwd%3D4vCD3ryz&index=1&md5=9360ac77486253802e22a3a3356d5d79)\nto receive unique dial-in information. Pre-registration may be completed at\nany time up to the call start time.\n\nAbout LandBridge\n\nLandBridge owns more than 325,000 surface acres across Texas and New Mexico,\nlocated primarily in the heart of the Delaware sub-region in the Permian\nBasin, the most active region for oil and gas exploration and development in\nthe United States. LandBridge actively manages its land and resources to\nsupport and encourage energy and infrastructure development and other land\nuses, including digital infrastructure. LandBridge was formed by Five Point\nInfrastructure LLC, a private equity firm with a track record of investing in\nand developing energy, environmental water management and sustainable\ninfrastructure companies within the Permian Basin. For more information,\nplease visit: www.landbridgeco.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.landbridgeco.com&esheet=54584300&newsitemid=20260805637776&lan=en-US&anchor=www.landbridgeco.com&index=2&md5=cf5e794303c6f560316d5b5a5cce483a)\n\nCautionary Statement Regarding Forward-Looking Statements\n\nThis news release may contain forward-looking statements that are based on\nLandBridge’s beliefs, as well as assumptions made by, and information\ncurrently available to, LandBridge, and therefore involve risks and\nuncertainties that are difficult to predict. Generally, future or conditional\nverbs such as “will,” “would,” “should,” or “could,” and the\nwords “believe,” “anticipate,” “continue,” “intend,”\n“expect” and similar expressions identify forward-looking statements.\nForward-looking statements include, but are not limited to, strategies, plans,\nobjectives, expectations, intentions, assumptions, future operations and\nprospects and other statements that are not historical facts, including our\nestimated future financial performance. You should not place undue reliance on\nforward-looking statements. Although LandBridge believes that plans,\nintentions and expectations reflected in or suggested by any forward-looking\nstatements made herein are reasonable, LandBridge may be unable to achieve\nsuch plans, intentions or expectations and actual results, and performance or\nachievements may vary materially and adversely from those envisaged in this\nnews release due to a number of factors including, but not limited to: our\ncustomers’ demand for and use of our land and resources; the success of\nWaterBridge in executing its business strategies, including its ability to\nconstruct and operate water infrastructure assets, attract customers and\noperate successfully on our land; our customers’ ability to develop our land\nor potential changes to our customers' development plans, or any potential\nacquired acreage to accommodate any future surface use developments, such as\ndata centers or other digital infrastructure; our ability to continue the\npayment of dividends; the domestic and foreign supply of, and demand for,\nenergy sources, including the impact of political instability or armed\nconflict in oil and natural gas producing regions, including increased\nhostilities in the Middle East, including Iran, and other sustained military\ncampaigns, the Russia-Ukraine war, as well as the conditions in South America,\nCentral America, China and Russia and acts of terrorism or sabotage, actions\nrelating to oil price and production controls by the members of the\nOrganization of Petroleum Exporting Countries, Russia and other allied\nproducing countries with respect to oil production levels and announcements of\npotential changes to such levels; our reliance on a limited number of\ncustomers and on a particular region for substantially all of our revenues,\nincluding the potential consolidation of such customers within such region and\nthe degree to which such consolidation may affect spending on U.S. drilling\nand completions in the near term; our ability to enter into favorable\ncontracts regarding surface uses, access agreements and fee arrangements,\nincluding the prices we are able to charge and the margins we are able to\nrealize; our business strategies and our ability to execute thereon, including\nour ability to attract non-traditional energy customers to use our land and\nresources and to successfully implement our growth plans and manage any\nresultant growth; our ability to successfully implement our growth plans,\nincluding through future acquisitions of acreage and/or the introduction of\nnew revenue streams, the costs associated with such acquisitions and revenue\nstreams, and the risk that we may not be able to integrate and/or realize the\nanticipated benefits therefrom; our level of indebtedness and our ability to\nservice our indebtedness; and any changes in general economic, business and/or\nindustry conditions and market volatility, including as a result of slowing\ngrowth, a potential economic recession, an elevated inflation rate, high\ninterest rates, changes in U.S. and international trade policies and\nrelations, and central bank policy, as well as associated liquidity risks.\nThese risks, as well as other risks associated with LandBridge are also more\nfully discussed in LandBridge's filings with the SEC, including its most\nrecent Annual Report on Form 10-K and any subsequently filed Quarterly Reports\non Form 10-Q and Current Reports on Form 8-K. You can access LandBridge’s\nfilings with the SEC through the SEC's website at http://www.sec.gov\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov&esheet=54584300&newsitemid=20260805637776&lan=en-US&anchor=http%3A%2F%2Fwww.sec.gov&index=3&md5=1b94f902d84514a46a56e4694bc3b635)\n. Except as required by applicable law, LandBridge undertakes no obligation to\nupdate any forward-looking statements or other statements herein for revisions\nor changes after this communication is made.\n\nThe historical financial information presented below reflects only our\nhistorical financial results and the historical financial results of our\npredecessor, DBR Land Holdings LLC, as applicable.\n SECOND QUARTER 2026 RESULTS \n \n \n \n  \n \n \n \nCONSOLIDATED STATEMENTS OF OPERATIONS \n \n \n \n(in thousands) (unaudited) \n   \n     Three Months Ended     Six Months Ended   \n \nJune 30, \nJune 30, \n     2026     2025     2026     2025   \n Revenues:                         \n Surface use royalties   $ 12,527     $ 9,019     $ 23,718     $ 19,540   \n Surface use royalties - related party     13,039       7,676       24,080       14,591   \n Easements and other surface-related revenues     19,948       14,271       31,548       20,711   \n Easements and other surface-related revenues - related party     6,655       3,248       9,818       5,581   \n Resource sales     5,622       5,456       10,847       12,622   \n Resource sales - related party     659       181       864       367   \n Resource royalties     4,119       3,841       8,388       7,999   \n Resource royalties - related party     697       1,107       1,971       3,953   \n Oil and gas royalties     3,574       2,734       6,546       6,120   \n Other     -       -       65       -   \n Total revenues     66,840       47,533       117,845       91,484   \n                           \n Resource sales-related expense     1,133       489       1,530       947   \n Other operating and maintenance expense     1,328       1,065       2,597       2,189   \n General and administrative expense     15,900       14,800       31,626       29,492   \n Depreciation, depletion and amortization     4,374       2,545       8,799       5,146   \n Other operating (income) expense, net     (53 )     132       (43 )     171   \n Operating income     44,158       28,502       73,336       53,539   \n                           \n Interest expense, net     9,190       7,879       18,701       15,856   \n Other expense, net     17       -       27       -   \n Income before income taxes     34,951       20,623       54,608       37,683   \n Income tax expense     3,902       2,148       5,691       3,749   \n Net income     31,049       18,475       48,917       33,934   \n Net income attributable to noncontrolling interest     18,762       10,973       27,915       19,968   \n Net income attributable to LandBridge Company LLC   $ 12,287     $ 7,502     $ 21,002     $ 13,966   \n\n CONSOLIDATED BALANCE SHEETS \n \n \n \n(in thousands) (unaudited) \n   \n     June 30,     December 31,   \n     2026     2025   \n Current assets:             \n Cash and cash equivalents   $ 39,797     $ 30,741   \n Accounts receivable, net     17,618       19,363   \n Related party accounts receivable     9,878       4,945   \n Prepaid expenses and other current assets     3,487       4,766   \n Total current assets     70,780       59,815   \n               \n Non-current assets:             \n Property, plant and equipment, net     1,092,750       1,084,450   \n Intangible assets, net     131,444       136,962   \n Deferred tax assets     79,059       80,973   \n Other assets     3,233       3,856   \n Total non-current assets     1,306,486       1,306,241   \n Total assets   $ 1,377,266     $ 1,366,056   \n               \n Liabilities and equity             \n Current liabilities:             \n Accounts payable   $ 742     $ 562   \n Taxes payable     966       1,200   \n Related party accounts payable     1,062       781   \n Accrued liabilities     5,946       7,781   \n Current portion of long-term debt     194       692   \n Contract liabilities     818       1,263   \n Other current liabilities     7       7   \n Total current liabilities     9,735       12,286   \n               \n Non-current liabilities:             \n Long-term debt, net of debt issuance costs     535,529       559,593   \n Other long-term liabilities     195       192   \n Total non-current liabilities     535,724       559,785   \n Total liabilities     545,459       572,071   \n               \n Commitments and contingencies             \n               \n Class A shares, unlimited shares authorized and 28,233,217 shares issued and     318,073       317,069   \n outstanding as of June 30, 2026. Unlimited shares authorized and 27,838,199 \n shares issued and outstanding as of December 31, 2025. \n Class B shares, unlimited shares authorized and 48,680,928 shares issued and     -       -   \n outstanding as of June 30, 2026. Unlimited shares authorized and 49,250,916 \n shares issued and outstanding as of December 31, 2025. \n Retained earnings     37,459       23,233   \n Total shareholders’ equity attributable to LandBridge Company LLC     355,532       340,302   \n Noncontrolling interest     476,275       453,683   \n Total shareholders’ equity     831,807       793,985   \n Total liabilities and equity   $ 1,377,266     $ 1,366,056   \n\n CONSOLIDATED STATEMENTS OF CASH FLOWS \n \n \n \n(in thousands) (unaudited) \n   \n     Six Months Ended June 30,   \n     2026     2025   \n Cash flows from operating activities             \n Net income   $ 48,917     $ 33,934   \n Adjustments to reconcile net income to net cash provided by operating             \n activities: \n Depreciation, depletion and amortization     8,799       5,146   \n Amortization of debt issuance costs     1,138       1,079   \n Share-based compensation     22,504       22,411   \n Deferred income tax expense     1,645       991   \n Other     (67 )     6   \n Changes in operating assets and liabilities:             \n Accounts receivable     1,695       (5,342 ) \n Related party accounts receivable     (4,933 )     (591 ) \n Prepaid expenses and other assets     997       (1,778 ) \n Accounts payable     151       (42 ) \n Related party accounts payable     280       96   \n Taxes payable     2,175       (1,831 ) \n Accrued and other liabilities     (810 )     (834 ) \n Net cash provided by operating activities     82,491       53,245   \n               \n Cash flows from investing activities             \n Acquisitions     (12,166 )     (18,762 ) \n Capital expenditures     (1,311 )     (1,309 ) \n Proceeds from disposal of assets     55       125   \n Net cash used in investing activities     (13,422 )     (19,946 ) \n               \n Cash flows from financing activities             \n Proceeds from debt     -       10,000   \n Repayments of debt     (25,483 )     (21,046 ) \n Dividends, dividend equivalents and distributions paid     (33,322 )     (37,923 ) \n Debt issuance costs     (1,201 )     (40 ) \n Offering costs     -       (977 ) \n Other     (7 )     -   \n Net cash used in financing activities     (60,013 )     (49,986 ) \n Net increase (decrease) in cash and cash equivalents     9,056       (16,687 ) \n Cash and cash equivalents - beginning of period     30,741       37,032   \n Cash and cash equivalents - end of period   $ 39,797     $ 20,345   \n\n\nComparison of Non-GAAP Financial Measures\n\nAdjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow\nMargin are supplemental non-GAAP measures that we use to evaluate current,\npast and expected future performance. Although these non-GAAP financial\nmeasures are important factors in assessing our operating results and cash\nflows, they should not be considered in isolation or as a substitute for net\nincome, gross margin or any other measures presented under GAAP.\n\nAdjusted EBITDA and Adjusted EBITDA Margin are used to assess the financial\nperformance of our assets over the long term to generate sufficient cash to\nreturn capital to equity holders or service indebtedness. We define Adjusted\nEBITDA as net income (loss) before interest; taxes; depreciation,\namortization, depletion and accretion; share-based compensation; non-recurring\ntransaction-related expenses and other non-cash or non-recurring expenses. We\ndefine Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.\n\nWe believe Adjusted EBITDA and Adjusted EBITDA Margin are useful because they\nallow us to more effectively evaluate our operating performance and compare\nthe results of our operations from period to period, and against our peers,\nwithout regard to our financing methods or capital structure. We exclude the\nitems listed above from net income (loss) in arriving at Adjusted EBITDA and\nAdjusted EBITDA Margin because these amounts can vary substantially from\ncompany to company within our industry depending upon accounting methods, book\nvalues of assets, capital structures and the method by which the assets were\nacquired.\n\nThe following table sets forth a reconciliation of net income as determined in\naccordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the\nperiods indicated.\n     Three Months Ended   \n     June 30, 2026     March 31, 2026     June 30, 2025   \n     (In thousands)   \n Net income   $ 31,049     $ 17,868     $ 18,475   \n Adjustments:                   \n Depreciation, depletion and amortization     4,374       4,425       2,545   \n Interest expense, net     9,190       9,511       7,879   \n Income tax expense     3,902       1,789       2,148   \n EBITDA     48,515       33,593       31,047   \n Adjustments:                 -   \n Share-based compensation - LBH Management Units     8,964       9,002       9,044   \n Share-based compensation - RSUs     2,276       2,262       2,227   \n Transaction-related expenses     -       -       135   \n Adjusted EBITDA   $ 59,755     $ 44,857     $ 42,453   \n Net income margin     46 %     35 %     39 % \n Adjusted EBITDA Margin     89 %     88 %     89 % \n\n\nFree Cash Flow and Free Cash Flow Margin are used to assess our ability to\nrepay our indebtedness, return capital to our shareholders and fund potential\nacquisitions without access to external sources of financing for such\npurposes. We define Free Cash Flow as cash flow from operating activities less\ninvestment in capital expenditures. We define Free Cash Flow Margin as Free\nCash Flow divided by total revenues.\n\nWe believe Free Cash Flow and Free Cash Flow Margin are useful because they\nallow for an effective evaluation of both our operating and financial\nperformance, as well as the capital intensity of our business, and\nsubsequently the ability of our operations to generate cash flow that is\navailable to distribute to our shareholders, reduce leverage or support\nacquisition activities.\n\nThe following table sets forth a reconciliation of cash flows from operating\nactivities determined in accordance with GAAP to Free Cash Flow and Free Cash\nFlow Margin, respectively, for the periods indicated.\n     Three Months Ended   \n     June 30, 2026     March 31, 2026     June 30, 2025   \n     (In thousands)   \n Net cash provided by operating activities   $ 41,371     $ 41,120     $ 37,332   \n Net cash used in investing activities     (11,274 )     (2,148 )     (2,079 ) \n Cash used in operating and investing activities     30,097       38,972       35,253   \n Adjustments:                   \n Acquisitions     10,171       1,995       944   \n Proceeds from disposal of assets     (28 )     (27 )     (105 ) \n Free Cash Flow   $ 40,240     $ 40,940     $ 36,092   \n Operating cash flow margin ((1))     62 %     81 %     79 % \n Free Cash Flow Margin     60 %     80 %     76 % \n\n (1) Operating cash flow margin is calculated by dividing net cash provided by operating activities by total revenue. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260805637776/en/\n(https://www.businesswire.com/news/home/20260805637776/en/)\n\nLandBridge \n\nScott McNeely\n\nChief Financial Officer\n\nContact@LandBridgeCo.com \n(mailto:Contact@LandBridgeCo.com) \n\n\nMae Herrington\n\nDirector, Investor Relations\n\nir@LandBridgeCo.com \n(mailto:ir@LandBridgeCo.com) \n\n\nMedia \n\nDaniel Yunger / Nathaniel Shahan\n\nKekst CNC\n\ndaniel.yunger@kekstcnc.com (mailto:daniel.yunger@kekstcnc.com)\n / nathaniel.shahan@kekstcnc.com (mailto:nathaniel.shahan@kekstcnc.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw42ZGdma","title":"LandBridge Announces Second Quarter 2026 Results","author":"Business Wire","ticker":"LB","created":"2026-08-05T20:10:00.207Z","tickers":["LB"],"exchange":"NYSE","article_body":"LandBridge Announces Second Quarter 2026 Results\n\nDelivers record second quarter revenue of $66.8 million, representing growth\nof 41% year-over-year and 31% quarter-over-quarter\n\nDeclares quarterly cash dividend of $0.12 per share\n\nLandBridge Company LLC (NYSE: LB; NYSE TX: LB) (the “Company,” or\n“LandBridge”) today announced its financial and operating results for the\nsecond quarter ended June 30, 2026.\n\nSecond Quarter 2026 Financial Highlights\n\n\n * Revenues of $66.8 million, representing an increase of 41% year-over-year and\n31% quarter-over-quarter\n\n * Net income((1)) of $31.0 million, representing an increase of 68%\nyear-over-year and 74% quarter-over-quarter\n\n * Net income margin((1)) of 46%\n\n * Adjusted EBITDA((2)) of $59.8 million, representing an increase of 41%\nyear-over-year and 33% quarter-over-quarter\n\n * Adjusted EBITDA Margin((2)) of 89%\n\n * Cash flows from operating activities of $41.4 million, representing an\nincrease of 11% year-over-year and 1% quarter-over-quarter\n\n * Free Cash Flow((2)) of $40.2 million, representing an increase of 11%\nyear-over-year\n\n * Operating cash flow margin of 62%\n\n * Free Cash Flow Margin((2)) of 60%\n\n * Announced quarterly cash dividend of $0.12 per share\n\nRecent Milestones\n\n\n * LandBridge continues to see growing and accelerated momentum in the West Texas\ndigital infrastructure thesis and in particular our unique offering of\nstrategic land and water resources, regional expertise, and extensive\nfacilitating network. LandBridge is currently under LOI, option, or engaged in\nlate-stage negotiations with seven power and digital infrastructure\ncounterparties, representing more than 10 GW of power generation potential\nacross our footprint.\n\n * Entered into agreement to acquire approximately 560 acres of fee surface\nunderlying the Northern Delaware Basin Landfill in Lea County, New Mexico, for\ntotal consideration of $20 million\n\n * Announced that the Board has unanimously approved the Company’s conversion\nand redomicile from a Delaware limited liability company to a Texas\ncorporation following the recommendation of the previously announced special\ncommittee of independent directors of the Board\n\nJason Long, Chief Executive Officer of LandBridge, stated, “We are proud to\nannounce another strong quarter of growth, reinforcing the strength and\ndurability of our business model, along with the commercial firepower we\ncontinue to bring to bear across our footprint. We remain excited about the\ncontinued growth trajectory ahead of us, both from the oil and gas and\nproduced water industry and from the longer-term digital infrastructure\nopportunity, where momentum is building quickly, as evidenced by our robust\nand growing list of non-binding commercial agreements and incremental interest\nacross our acreage position.\"\n\nScott McNeely, Chief Financial Officer of LandBridge, said, “Our second\nquarter results underscore the durability of a high-margin, asset-light\nbusiness model that continues to convert growth across multiple revenue\nstreams into outsized free cash flow, a dynamic we expect to continue as the\nbusiness grows in scale. Equally significant, our Board's approval to\nredomicile in Texas as a corporation reflects a deliberate step toward broader\nindex eligibility and reinforces our disciplined focus on long-term\nshareholder value creation.\"\n\nSecond Quarter 2026 Consolidated Financial Information\n\nRevenue for the second quarter of 2026 was $66.8 million as compared to $51.0\nmillion in the first quarter of 2026 and $47.5 million in the second quarter\nof 2025. The sequential increase was attributable to growth across multiple\nkey revenue streams, including increases of $0.1 million in resource sales and\nroyalties, $15.2 million in surface use royalties and revenues, $0.6 million\nin oil and gas royalties, partially offset by a decrease of $0.1 million in\nother revenue. Net income for the second quarter of 2026 was $31.0 million as\ncompared to $17.9 million in the first quarter of 2026 and a net income of\n$18.5 million in the second quarter of 2025.((1))\n\nAdjusted EBITDA was $59.8 million in the second quarter of 2026 as compared to\n$44.9 million in the first quarter of 2026 and $42.5 million in the second\nquarter of 2025.\n\nNet income margin was 46% in the second quarter of 2026 as compared to 35% in\nthe first quarter of 2026 and a net income margin of 39% in the second quarter\nof 2025.((1)) Adjusted EBITDA margin was 89% in the second quarter of 2026 as\ncompared to 88% in the first quarter of 2026 and 89% in the second quarter of\n2025.((2))\n\nDiversified Revenue Streams\n\nSurface Use Royalties and Revenue: Generated revenues of $52.2 million in the\nsecond quarter of 2026 as compared to $37.0 million in the first quarter of\n2026 and $34.2 million in the second quarter of 2025. Surface Use Royalties\nand Revenue increased $15.2 million sequentially, primarily driven by an\nincrease in produced water handling volumes across our acreage as well as an\noverall increase in commercial activity on our land.\n\nResources Sales and Royalties: Generated revenues of $11.1 million in the\nsecond quarter of 2026 as compared to $11.0 million in the first quarter of\n2026 and $10.6 million in the second quarter of 2025. Revenue from Resource\nSales and Royalties increased $0.1 million sequentially, primarily driven by\nincreases in water sales on our legacy acreage.\n\nOil and Gas Royalties: Generated revenues of $3.6 million in the second\nquarter of 2026 as compared to $3.0 million in the first quarter of 2026 and\n$2.7 million in the second quarter of 2025. Revenue from Oil and Gas Royalties\nincreased $0.6 million sequentially, primarily driven by higher oil prices in\nthe quarter.\n\nFree Cash Flow Generation\n\nCash flow from operations for the second quarter of 2026 was $41.4 million as\ncompared to $41.1 million in the first quarter of 2026 and $37.3 million in\nthe second quarter of 2025. Free Cash Flow for the second quarter of 2026 was\n$40.2 million as compared to $40.9 million in the first quarter of 2026 and\n$36.1 million in the second quarter of 2025.((2))\n\nCapital expenditures for the second quarter of 2026 were $1.1 million and net\ncash used in investing activities during the second quarter of 2026 was $11.3\nmillion, which included approximately $10.2 million of acquisition\nexpenditures related to bolt-on acquisitions executed in the second quarter.\nNet cash used in financing activities during the second quarter of 2026 was\n$20.0 million.\n\nStrong Balance Sheet with Ample Liquidity\n\nTotal liquidity was $269.8 million as of June 30, 2026.\n\nAs of June 30, 2026, the Company had approximately $230.0 million of available\nborrowing capacity under its revolving credit facility.\n\nTotal cash and cash equivalents were $39.8 million as of June 30, 2026, as\ncompared to $29.7 million as of March 31, 2026. The Company had $545.2 million\nof borrowings outstanding as of June 30, 2026, versus $545.5 million\noutstanding as of March 31, 2026.\n\nSubsequent to the quarter on August 4, 2026, DBR Land Holdings LLC, a\nsubsidiary of the Company (\"OpCo\"), entered into an amendment (the\n\"Amendment\") to its 2025 revolving credit agreement (the \"2025 Revolving\nCredit Facility\"). Pursuant to the Amendment, lender commitments were\nincreased by $100.0 million, from $275.0 million to $375.0 million, through\nthe exercise in full of the incremental commitment capacity available under\nthe 2025 Revolving Credit Facility. Concurrently, the Amendment re-established\nincremental commitment capacity of up to an additional $100.0 million, which\nmay be exercised by OpCo from time to time subject to the receipt of\nadditional lender commitments and satisfaction of the other conditions set\nforth in the 2025 Revolving Credit Facility. Giving effect to the foregoing,\nlender commitments under the 2025 Revolving Credit Facility may be increased\nto up to $475.0 million.\n\nIn addition, the Amendment reduced the applicable margins under the 2025\nRevolving Credit Facility by 0.25% (25 basis points) at each level of the\npricing grid. As amended, Term SOFR Loans bear interest at Term SOFR for the\napplicable tenor plus a leverage-based applicable margin between 1.75% and\n2.75% per annum, and Base Rate Loans bear interest at the applicable base rate\nplus a leverage-based applicable margin between 0.75% and 1.75% per annum.\n\nExcept as described above, the other material terms of the 2025 Revolving\nCredit Facility, including the Maturity Date, the commitment fee and the\nfinancial and other covenants, remained unchanged.\n\nRecent Transactions\n\nSubsequent to the second quarter on August 4, 2026, LandBridge agreed to\nacquire approximately 560 acres of fee surface underlying the Northern\nDelaware Basin Landfill in Lea County, New Mexico, for total consideration of\n$20 million. The transaction is expected to close in the third quarter of 2026\nconcurrently with the acquisition of the NDB Landfill by WaterBridge, subject\nto customary closing conditions and receipt of all required consents and\napprovals. In connection with the land acquisition, WaterBridge and LandBridge\nwill enter into a long-term surface use agreement for the NDB Landfill. The\nland acquisition, including the valuation and the surface use agreement, was\napproved by a Conflicts Committee of the LandBridge Board of Directors\nconsisting entirely of independent directors.\n\nSecond Quarter 2026 Dividend\n\nThe Board declared a dividend on our Class A shares of $0.12 per share,\npayable on September 10, 2026 to shareholders of record as of August 27, 2026,\nand a corresponding required cash distribution to OpCo unitholders.\n\n2026 Outlook\n\nThe Company reaffirms its outlook for fiscal year 2026, with Adjusted EBITDA\nexpected to be between $210 million and $230 million.\n\nReconciliations of forward-looking non-GAAP financial measures to comparable\nGAAP measures are not available due to the challenges and impracticability of\nestimating certain items, particularly non-recurring gains or losses, unusual\nor non-recurring items, income tax benefit or expense, or one-time transaction\ncosts and cost of revenue. We are unable to reasonably predict these because\nthey are uncertain and depend on various factors not yet known, which could\nhave a material impact on GAAP results for the guidance period. Because of\nthose challenges, a reconciliation of forward-looking non-GAAP financial\nmeasures is not available without unreasonable effort.\n ((1) )Q2 2026 net income and net income margin include a non-cash expense of $11.2 million attributable to share-based compensation, of which $9.0 million is attributable to management units issued by LandBridge Holdings LLC. Any actual cash expense associated with such management units will be borne solely by LandBridge Holdings LLC and not the Company. The management units are not dilutive of public ownership. \n   \n ((2)) Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are non-GAAP financial measures. See “Comparison of Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP. \n\n\nQuarterly Report on Form 10-Q\n\nOur financial statements and related footnotes are available in our Quarterly\nReport on Form 10-Q for the quarter ended June 30, 2026, which is expected to\nbe filed with the U.S. Securities and Exchange Commission (“SEC”) on\nAugust 5, 2026.\n\nConference Call and Webcast Information\n\nThe Company will hold a conference call on Thursday, August 6, 2026, at 10:00\na.m. Central Time to discuss second quarter results. A live webcast of the\nconference call will be available on the Events and Presentations section of\nthe LandBridge Investor Relations website. To listen to the live broadcast, go\nto the site at least 10-15 minutes prior to the scheduled start time to\nregister and install any necessary audio software.\n\nTo access the live conference call, participants must pre-register online at\nhttps://events.q4inc.com/analyst/893270445?pwd=4vCD3ryz\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F893270445%3Fpwd%3D4vCD3ryz&esheet=54584300&newsitemid=20260805637776&lan=en-US&anchor=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F893270445%3Fpwd%3D4vCD3ryz&index=1&md5=9360ac77486253802e22a3a3356d5d79)\nto receive unique dial-in information. Pre-registration may be completed at\nany time up to the call start time.\n\nAbout LandBridge\n\nLandBridge owns more than 325,000 surface acres across Texas and New Mexico,\nlocated primarily in the heart of the Delaware sub-region in the Permian\nBasin, the most active region for oil and gas exploration and development in\nthe United States. LandBridge actively manages its land and resources to\nsupport and encourage energy and infrastructure development and other land\nuses, including digital infrastructure. LandBridge was formed by Five Point\nInfrastructure LLC, a private equity firm with a track record of investing in\nand developing energy, environmental water management and sustainable\ninfrastructure companies within the Permian Basin. For more information,\nplease visit: www.landbridgeco.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.landbridgeco.com&esheet=54584300&newsitemid=20260805637776&lan=en-US&anchor=www.landbridgeco.com&index=2&md5=cf5e794303c6f560316d5b5a5cce483a)\n\nCautionary Statement Regarding Forward-Looking Statements\n\nThis news release may contain forward-looking statements that are based on\nLandBridge’s beliefs, as well as assumptions made by, and information\ncurrently available to, LandBridge, and therefore involve risks and\nuncertainties that are difficult to predict. Generally, future or conditional\nverbs such as “will,” “would,” “should,” or “could,” and the\nwords “believe,” “anticipate,” “continue,” “intend,”\n“expect” and similar expressions identify forward-looking statements.\nForward-looking statements include, but are not limited to, strategies, plans,\nobjectives, expectations, intentions, assumptions, future operations and\nprospects and other statements that are not historical facts, including our\nestimated future financial performance. You should not place undue reliance on\nforward-looking statements. Although LandBridge believes that plans,\nintentions and expectations reflected in or suggested by any forward-looking\nstatements made herein are reasonable, LandBridge may be unable to achieve\nsuch plans, intentions or expectations and actual results, and performance or\nachievements may vary materially and adversely from those envisaged in this\nnews release due to a number of factors including, but not limited to: our\ncustomers’ demand for and use of our land and resources; the success of\nWaterBridge in executing its business strategies, including its ability to\nconstruct and operate water infrastructure assets, attract customers and\noperate successfully on our land; our customers’ ability to develop our land\nor potential changes to our customers' development plans, or any potential\nacquired acreage to accommodate any future surface use developments, such as\ndata centers or other digital infrastructure; our ability to continue the\npayment of dividends; the domestic and foreign supply of, and demand for,\nenergy sources, including the impact of political instability or armed\nconflict in oil and natural gas producing regions, including increased\nhostilities in the Middle East, including Iran, and other sustained military\ncampaigns, the Russia-Ukraine war, as well as the conditions in South America,\nCentral America, China and Russia and acts of terrorism or sabotage, actions\nrelating to oil price and production controls by the members of the\nOrganization of Petroleum Exporting Countries, Russia and other allied\nproducing countries with respect to oil production levels and announcements of\npotential changes to such levels; our reliance on a limited number of\ncustomers and on a particular region for substantially all of our revenues,\nincluding the potential consolidation of such customers within such region and\nthe degree to which such consolidation may affect spending on U.S. drilling\nand completions in the near term; our ability to enter into favorable\ncontracts regarding surface uses, access agreements and fee arrangements,\nincluding the prices we are able to charge and the margins we are able to\nrealize; our business strategies and our ability to execute thereon, including\nour ability to attract non-traditional energy customers to use our land and\nresources and to successfully implement our growth plans and manage any\nresultant growth; our ability to successfully implement our growth plans,\nincluding through future acquisitions of acreage and/or the introduction of\nnew revenue streams, the costs associated with such acquisitions and revenue\nstreams, and the risk that we may not be able to integrate and/or realize the\nanticipated benefits therefrom; our level of indebtedness and our ability to\nservice our indebtedness; and any changes in general economic, business and/or\nindustry conditions and market volatility, including as a result of slowing\ngrowth, a potential economic recession, an elevated inflation rate, high\ninterest rates, changes in U.S. and international trade policies and\nrelations, and central bank policy, as well as associated liquidity risks.\nThese risks, as well as other risks associated with LandBridge are also more\nfully discussed in LandBridge's filings with the SEC, including its most\nrecent Annual Report on Form 10-K and any subsequently filed Quarterly Reports\non Form 10-Q and Current Reports on Form 8-K. You can access LandBridge’s\nfilings with the SEC through the SEC's website at http://www.sec.gov\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov&esheet=54584300&newsitemid=20260805637776&lan=en-US&anchor=http%3A%2F%2Fwww.sec.gov&index=3&md5=1b94f902d84514a46a56e4694bc3b635)\n. Except as required by applicable law, LandBridge undertakes no obligation to\nupdate any forward-looking statements or other statements herein for revisions\nor changes after this communication is made.\n\nThe historical financial information presented below reflects only our\nhistorical financial results and the historical financial results of our\npredecessor, DBR Land Holdings LLC, as applicable.\n SECOND QUARTER 2026 RESULTS \n \n \n \n  \n \n \n \nCONSOLIDATED STATEMENTS OF OPERATIONS \n \n \n \n(in thousands) (unaudited) \n   \n     Three Months Ended     Six Months Ended   \n \nJune 30, \nJune 30, \n     2026     2025     2026     2025   \n Revenues:                         \n Surface use royalties   $ 12,527     $ 9,019     $ 23,718     $ 19,540   \n Surface use royalties - related party     13,039       7,676       24,080       14,591   \n Easements and other surface-related revenues     19,948       14,271       31,548       20,711   \n Easements and other surface-related revenues - related party     6,655       3,248       9,818       5,581   \n Resource sales     5,622       5,456       10,847       12,622   \n Resource sales - related party     659       181       864       367   \n Resource royalties     4,119       3,841       8,388       7,999   \n Resource royalties - related party     697       1,107       1,971       3,953   \n Oil and gas royalties     3,574       2,734       6,546       6,120   \n Other     -       -       65       -   \n Total revenues     66,840       47,533       117,845       91,484   \n                           \n Resource sales-related expense     1,133       489       1,530       947   \n Other operating and maintenance expense     1,328       1,065       2,597       2,189   \n General and administrative expense     15,900       14,800       31,626       29,492   \n Depreciation, depletion and amortization     4,374       2,545       8,799       5,146   \n Other operating (income) expense, net     (53 )     132       (43 )     171   \n Operating income     44,158       28,502       73,336       53,539   \n                           \n Interest expense, net     9,190       7,879       18,701       15,856   \n Other expense, net     17       -       27       -   \n Income before income taxes     34,951       20,623       54,608       37,683   \n Income tax expense     3,902       2,148       5,691       3,749   \n Net income     31,049       18,475       48,917       33,934   \n Net income attributable to noncontrolling interest     18,762       10,973       27,915       19,968   \n Net income attributable to LandBridge Company LLC   $ 12,287     $ 7,502     $ 21,002     $ 13,966   \n\n CONSOLIDATED BALANCE SHEETS \n \n \n \n(in thousands) (unaudited) \n   \n     June 30,     December 31,   \n     2026     2025   \n Current assets:             \n Cash and cash equivalents   $ 39,797     $ 30,741   \n Accounts receivable, net     17,618       19,363   \n Related party accounts receivable     9,878       4,945   \n Prepaid expenses and other current assets     3,487       4,766   \n Total current assets     70,780       59,815   \n               \n Non-current assets:             \n Property, plant and equipment, net     1,092,750       1,084,450   \n Intangible assets, net     131,444       136,962   \n Deferred tax assets     79,059       80,973   \n Other assets     3,233       3,856   \n Total non-current assets     1,306,486       1,306,241   \n Total assets   $ 1,377,266     $ 1,366,056   \n               \n Liabilities and equity             \n Current liabilities:             \n Accounts payable   $ 742     $ 562   \n Taxes payable     966       1,200   \n Related party accounts payable     1,062       781   \n Accrued liabilities     5,946       7,781   \n Current portion of long-term debt     194       692   \n Contract liabilities     818       1,263   \n Other current liabilities     7       7   \n Total current liabilities     9,735       12,286   \n               \n Non-current liabilities:             \n Long-term debt, net of debt issuance costs     535,529       559,593   \n Other long-term liabilities     195       192   \n Total non-current liabilities     535,724       559,785   \n Total liabilities     545,459       572,071   \n               \n Commitments and contingencies             \n               \n Class A shares, unlimited shares authorized and 28,233,217 shares issued and     318,073       317,069   \n outstanding as of June 30, 2026. Unlimited shares authorized and 27,838,199 \n shares issued and outstanding as of December 31, 2025. \n Class B shares, unlimited shares authorized and 48,680,928 shares issued and     -       -   \n outstanding as of June 30, 2026. Unlimited shares authorized and 49,250,916 \n shares issued and outstanding as of December 31, 2025. \n Retained earnings     37,459       23,233   \n Total shareholders’ equity attributable to LandBridge Company LLC     355,532       340,302   \n Noncontrolling interest     476,275       453,683   \n Total shareholders’ equity     831,807       793,985   \n Total liabilities and equity   $ 1,377,266     $ 1,366,056   \n\n CONSOLIDATED STATEMENTS OF CASH FLOWS \n \n \n \n(in thousands) (unaudited) \n   \n     Six Months Ended June 30,   \n     2026     2025   \n Cash flows from operating activities             \n Net income   $ 48,917     $ 33,934   \n Adjustments to reconcile net income to net cash provided by operating             \n activities: \n Depreciation, depletion and amortization     8,799       5,146   \n Amortization of debt issuance costs     1,138       1,079   \n Share-based compensation     22,504       22,411   \n Deferred income tax expense     1,645       991   \n Other     (67 )     6   \n Changes in operating assets and liabilities:             \n Accounts receivable     1,695       (5,342 ) \n Related party accounts receivable     (4,933 )     (591 ) \n Prepaid expenses and other assets     997       (1,778 ) \n Accounts payable     151       (42 ) \n Related party accounts payable     280       96   \n Taxes payable     2,175       (1,831 ) \n Accrued and other liabilities     (810 )     (834 ) \n Net cash provided by operating activities     82,491       53,245   \n               \n Cash flows from investing activities             \n Acquisitions     (12,166 )     (18,762 ) \n Capital expenditures     (1,311 )     (1,309 ) \n Proceeds from disposal of assets     55       125   \n Net cash used in investing activities     (13,422 )     (19,946 ) \n               \n Cash flows from financing activities             \n Proceeds from debt     -       10,000   \n Repayments of debt     (25,483 )     (21,046 ) \n Dividends, dividend equivalents and distributions paid     (33,322 )     (37,923 ) \n Debt issuance costs     (1,201 )     (40 ) \n Offering costs     -       (977 ) \n Other     (7 )     -   \n Net cash used in financing activities     (60,013 )     (49,986 ) \n Net increase (decrease) in cash and cash equivalents     9,056       (16,687 ) \n Cash and cash equivalents - beginning of period     30,741       37,032   \n Cash and cash equivalents - end of period   $ 39,797     $ 20,345   \n\n\nComparison of Non-GAAP Financial Measures\n\nAdjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow\nMargin are supplemental non-GAAP measures that we use to evaluate current,\npast and expected future performance. Although these non-GAAP financial\nmeasures are important factors in assessing our operating results and cash\nflows, they should not be considered in isolation or as a substitute for net\nincome, gross margin or any other measures presented under GAAP.\n\nAdjusted EBITDA and Adjusted EBITDA Margin are used to assess the financial\nperformance of our assets over the long term to generate sufficient cash to\nreturn capital to equity holders or service indebtedness. We define Adjusted\nEBITDA as net income (loss) before interest; taxes; depreciation,\namortization, depletion and accretion; share-based compensation; non-recurring\ntransaction-related expenses and other non-cash or non-recurring expenses. We\ndefine Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.\n\nWe believe Adjusted EBITDA and Adjusted EBITDA Margin are useful because they\nallow us to more effectively evaluate our operating performance and compare\nthe results of our operations from period to period, and against our peers,\nwithout regard to our financing methods or capital structure. We exclude the\nitems listed above from net income (loss) in arriving at Adjusted EBITDA and\nAdjusted EBITDA Margin because these amounts can vary substantially from\ncompany to company within our industry depending upon accounting methods, book\nvalues of assets, capital structures and the method by which the assets were\nacquired.\n\nThe following table sets forth a reconciliation of net income as determined in\naccordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the\nperiods indicated.\n     Three Months Ended   \n     June 30, 2026     March 31, 2026     June 30, 2025   \n     (In thousands)   \n Net income   $ 31,049     $ 17,868     $ 18,475   \n Adjustments:                   \n Depreciation, depletion and amortization     4,374       4,425       2,545   \n Interest expense, net     9,190       9,511       7,879   \n Income tax expense     3,902       1,789       2,148   \n EBITDA     48,515       33,593       31,047   \n Adjustments:                 -   \n Share-based compensation - LBH Management Units     8,964       9,002       9,044   \n Share-based compensation - RSUs     2,276       2,262       2,227   \n Transaction-related expenses     -       -       135   \n Adjusted EBITDA   $ 59,755     $ 44,857     $ 42,453   \n Net income margin     46 %     35 %     39 % \n Adjusted EBITDA Margin     89 %     88 %     89 % \n\n\nFree Cash Flow and Free Cash Flow Margin are used to assess our ability to\nrepay our indebtedness, return capital to our shareholders and fund potential\nacquisitions without access to external sources of financing for such\npurposes. We define Free Cash Flow as cash flow from operating activities less\ninvestment in capital expenditures. We define Free Cash Flow Margin as Free\nCash Flow divided by total revenues.\n\nWe believe Free Cash Flow and Free Cash Flow Margin are useful because they\nallow for an effective evaluation of both our operating and financial\nperformance, as well as the capital intensity of our business, and\nsubsequently the ability of our operations to generate cash flow that is\navailable to distribute to our shareholders, reduce leverage or support\nacquisition activities.\n\nThe following table sets forth a reconciliation of cash flows from operating\nactivities determined in accordance with GAAP to Free Cash Flow and Free Cash\nFlow Margin, respectively, for the periods indicated.\n     Three Months Ended   \n     June 30, 2026     March 31, 2026     June 30, 2025   \n     (In thousands)   \n Net cash provided by operating activities   $ 41,371     $ 41,120     $ 37,332   \n Net cash used in investing activities     (11,274 )     (2,148 )     (2,079 ) \n Cash used in operating and investing activities     30,097       38,972       35,253   \n Adjustments:                   \n Acquisitions     10,171       1,995       944   \n Proceeds from disposal of assets     (28 )     (27 )     (105 ) \n Free Cash Flow   $ 40,240     $ 40,940     $ 36,092   \n Operating cash flow margin ((1))     62 %     81 %     79 % \n Free Cash Flow Margin     60 %     80 %     76 % \n\n (1) Operating cash flow margin is calculated by dividing net cash provided by operating activities by total revenue. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260805637776/en/\n(https://www.businesswire.com/news/home/20260805637776/en/)\n\nLandBridge \n\nScott McNeely\n\nChief Financial Officer\n\nContact@LandBridgeCo.com \n(mailto:Contact@LandBridgeCo.com) \n\n\nMae Herrington\n\nDirector, Investor Relations\n\nir@LandBridgeCo.com \n(mailto:ir@LandBridgeCo.com) \n\n\nMedia \n\nDaniel Yunger / Nathaniel Shahan\n\nKekst CNC\n\ndaniel.yunger@kekstcnc.com (mailto:daniel.yunger@kekstcnc.com)\n / nathaniel.shahan@kekstcnc.com (mailto:nathaniel.shahan@kekstcnc.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-08-05T20:10:00.506608543Z","server_sent_at_ms":1785960600506},"received_at":"2026-08-05T20:10:00.810Z","source_url":"https://www.businesswire.com/news/home/20260805637776/en/"},"analysis":{"id":"99146","press_release_id":"110138","analysis_json":{"industry":{"label":"Oil, Gas & Consumable Fuels","sector":"Energy"},"redFlags":[],"eventType":"earnings","narrative":"LandBridge delivered record second quarter revenue of $66.8 million, representing 41% year-over-year growth, driven by increases in surface use royalties and water handling volumes.\n\nNet income increased 68% year-over-year to $31.0 million with a 46% margin, while free cash flow reached $40.2 million.\n\nThe Board declared a $0.12 per share quarterly dividend and reaffirmed full-year Adjusted EBITDA guidance of $210 million to $230 million.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Record revenue and margins support dividend declaration and credit facility expansion."},"keyFigures":{"revenue":66800000,"guidance":"Adjusted EBITDA expected to be between $210 million and $230 million for fiscal year 2026","revenueYoy":"41%","customDimensions":{"fcf":40200000,"liquidity":269800000,"net_income":31000000,"ebitda_margin":"89%","adjusted_ebitda":59800000,"net_income_margin":"46%","dividend_per_share":0.12}},"quotedText":"We are proud to announce another strong quarter of growth, reinforcing the strength and durability of our business model, along with the commercial firepower we continue to bring to bear across our footprint.","namedEntities":{"people":[{"name":"Jason Long","role":"CEO"},{"name":"Scott McNeely","role":"CFO"},{"name":"Mae Herrington","role":"Director, Investor Relations"}],"products":["Northern Delaware Basin Landfill"],"companies":[{"name":"LandBridge Company LLC","ticker":"LB"},{"name":"DBR Land Holdings LLC","relationship":"subsidiary"},{"name":"WaterBridge","relationship":"partner"},{"name":"Five Point Infrastructure LLC","relationship":"shareholder"}],"dollarAmounts":[{"amount":"$66.8 million","context":"second quarter revenue"},{"amount":"$31.0 million","context":"second quarter net income"},{"amount":"$59.8 million","context":"second quarter Adjusted EBITDA"},{"amount":"$40.2 million","context":"second quarter Free Cash Flow"},{"amount":"$0.12","context":"quarterly cash dividend per share"},{"amount":"$269.8 million","context":"total liquidity as of June 30, 2026"},{"amount":"$20 million","context":"total consideration for land acquisition"},{"amount":"$100.0 million","context":"increase in lender commitments"}]},"materialImpact":{"score":4,"reasoning":"Record revenue of $66.8 million with 41% year-over-year growth and 46% net income margin demonstrates strong operational momentum. The company also declared a dividend, expanded its credit facility, and reaffirmed full-year guidance."},"tickerRelevance":{"others":[],"primary":"LB"},"globalImportance":35,"audienceRelevance":30,"eventTypeSecondary":["dividend"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"record-earnings-growth","sectorWeight":"Energy"}},"event_type":"earnings","event_type_secondary":["dividend"],"sentiment":"bullish","material_impact_score":4,"narrative":"LandBridge delivered record second quarter revenue of $66.8 million, representing 41% year-over-year growth, driven by increases in surface use royalties and water handling volumes.\n\nNet income increased 68% year-over-year to $31.0 million with a 46% margin, while free cash flow reached $40.2 million.\n\nThe Board declared a $0.12 per share quarterly dividend and reaffirmed full-year Adjusted EBITDA guidance of $210 million to $230 million.","key_figures":{"revenue":66800000,"guidance":"Adjusted EBITDA expected to be between $210 million and $230 million for fiscal year 2026","revenueYoy":"41%","customDimensions":{"fcf":40200000,"liquidity":269800000,"net_income":31000000,"ebitda_margin":"89%","adjusted_ebitda":59800000,"net_income_margin":"46%","dividend_per_share":0.12}},"named_entities":{"people":[{"name":"Jason Long","role":"CEO"},{"name":"Scott McNeely","role":"CFO"},{"name":"Mae Herrington","role":"Director, Investor Relations"}],"products":["Northern Delaware Basin Landfill"],"companies":[{"name":"LandBridge Company LLC","ticker":"LB"},{"name":"DBR Land Holdings LLC","relationship":"subsidiary"},{"name":"WaterBridge","relationship":"partner"},{"name":"Five Point Infrastructure LLC","relationship":"shareholder"}],"dollarAmounts":[{"amount":"$66.8 million","context":"second quarter revenue"},{"amount":"$31.0 million","context":"second quarter net income"},{"amount":"$59.8 million","context":"second quarter Adjusted EBITDA"},{"amount":"$40.2 million","context":"second quarter Free Cash Flow"},{"amount":"$0.12","context":"quarterly cash dividend per share"},{"amount":"$269.8 million","context":"total liquidity as of June 30, 2026"},{"amount":"$20 million","context":"total consideration for land acquisition"},{"amount":"$100.0 million","context":"increase in lender commitments"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-06T01:20:07.483Z","global_importance":35,"audience_relevance":30,"importance_components":{"tickerTier":"mid-cap","eventGravity":"record-earnings-growth","sectorWeight":"Energy"}},"durationMs":389277,"modelName":"glm-4.7"}}