LandBridge — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $70.9 million, an increase of 39% year-over-year and 6% quarter-over-quarter.
• Net income was $34.0 million, representing a 68% year-over-year increase and a 10% quarter-over-quarter increase.
• Net income margin was 48%, compared to 40% in the third quarter of 2025 and 46% in the second quarter of 2026.
• Adjusted EBITDA was $63.7 million, a 42% year-over-year increase and a 7% quarter-over-quarter increase.
• Adjusted EBITDA margin was 90%, compared to 88% in the third quarter of 2025 and 89% in the second quarter of 2026.
• Cash flows from operating activities were $49.6 million, up 42% year-over-year and 20% quarter-over-quarter.
• Free Cash Flow was $49.0 million, up 45% year-over-year and 22% quarter-over-quarter.
• Free Cash Flow Margin was 69%.
• Operating cash flow margin was 70%.
• Total liquidity was $126.8 million as of September 30, 2026.
• Total cash and cash equivalents were $16.8 million as of September 30, 2026, down from $39.8 million as of June 30, 2026.
• Total borrowings outstanding were $765.0 million as of September 30, 2026, up from $545.2 million as of June 30, 2026.
• Available borrowing capacity under the revolving credit facility was approximately $110.0 million as of September 30, 2026.
• Capital expenditures for the quarter were $0.6 million.
• Net cash used in investing activities was $267.4 million, including approximately $266.8 million in acquisition expenditures.
• Net cash provided by financing activities was $74.8 million.

Guidance and Future Outlook:

• Full year 2026 Adjusted EBITDA guidance was increased to a range of $220 million to $235 million, with a midpoint of $227.5 million.
• The guidance increase is supported by expected contributions from recent acquisitions beginning in the fourth quarter of 2026.
• First power delivery for the Alpha Phase I data center campus is anticipated in the fourth quarter of 2027.

Business Segments and Product Lines:

• Surface Use Royalties and Revenue: Generated $54.3 million, up from $35.0 million in the third quarter of 2025 and $52.2 million in the second quarter of 2026, driven by increased produced water handling volumes and pipeline easement revenue.
• Resource Sales and Royalties: Generated $12.5 million, up from $10.8 million in the third quarter of 2025 and $11.1 million in the second quarter of 2026, driven by increases in water, caliche, and sand sales.
• Oil and Gas Royalties: Generated $4.1 million, up from $3.3 million in the third quarter of 2025 and $3.6 million in the second quarter of 2026, driven by net royalty production increasing from 773 boe/d to 917 boe/d.
• Acquisitions: Completed the acquisition of approximately 25,000 acres across the Delaware Basin, increasing contiguity, scale, undeveloped pore space portfolio, and contracted royalty cash flows.
• PowerBridge Alpha Phase I: PowerBridge converted an option to lease on an initial 825-acre portion of the Alpha Digital Campus acreage and commenced construction in September 2026. The project is expected to include more than 300 megawatts of the planned 2 gigawatt powered data center campus.

Market and Competitive Landscape:

• LandBridge owns or manages more than 350,000 surface acres across Texas and New Mexico, primarily in the Delaware sub-region of the Permian Basin.
• The company is engaged in active discussions with operators to commercialize acquired pore space, offering a long-term alternative for produced water disposal to active E&P operators.
• The company completed its conversion from a Delaware limited liability company to a Texas corporation to enable participation in broader market indices.

Risks and Challenges:

• Forward-looking statements involve risks including customer demand for land and resources, the success of WaterBridge Infrastructure LLC, and potential changes to customer development plans.
• Risks include reliance on a limited number of customers and a particular region, potential consolidation of customers, and the ability to enter into favorable contracts.
• Risks related to indebtedness levels, ability to service debt, and general economic conditions, including inflation, interest rates, and trade policies, are noted.
• Specific geopolitical risks include political instability, armed conflict in oil-producing regions (Middle East, Russia-Ukraine), and actions by OPEC+ regarding production levels.

Management Commentary and Tone:

• CEO Jason Long stated the company delivered another strong quarter with 39% year-over-year revenue growth and highlighted continued organic and M&A momentum.
• CFO Scott McNeely emphasized the scalability of the high-margin, asset-light business model and the decision to raise guidance based on growth across every revenue stream.
• Management expressed confidence in the ability to develop and commercialize pore space on newly acquired acreage while preserving long-term, recurring cash flows.

Other Key Points:

• The Board declared a quarterly cash dividend of $0.12 per share on Class A common stock, payable on December 10, 2026, to shareholders of record as of November 25, 2026.
• Liquidity was increased through a $100 million revolving credit facility upsize on August 4, 2026, and a $125 million tack-on debt offering on October 1, 2026.
• On October 1, 2026, DBR Land Holdings LLC issued an additional $125.0 million aggregate principal amount of 6.25% fixed-rate senior unsecured notes due 2030, bringing the total aggregate principal amount of notes to $625.0 million.
• Net income for the third quarter of 2026 includes a non-cash expense of $9.1 million attributable to share-based compensation.
• The Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, is expected to be filed with the SEC on November 4, 2026.
• A conference call to discuss results is scheduled for November 5, 2026, at 10:00 a.m. Central Time.