Landbridge Company LLC (NYSE: LB) has announced an agreement to acquire approximately 37,500 total acres across loving, reeves, winkler, and ward counties in Texas from 1918 Ranch & Royalty, LLC. This acquisition is expected to increase Landbridge's total holdings to around 300,000 surface acres, providing existing cash flows and significant future revenue growth opportunities.
The acreage to be acquired consists of approximately 22,000 fee surface acres, approximately 3,500 surface acres held pursuant to a long-term management agreement, and approximately 12,000 leasehold surface acres. Upon closing, this transaction will provide Landbridge with immediate access to high-quality pore space adjacent to its large contiguous surface acreage position in loving county, Texas. This acreage position is expected to support additional water handling infrastructure necessary to handle escalating commercial produced water volumes in the stateline region of the Delaware Basin, expanding Landbridge’s ability to deliver economic pore space alternatives to a broader customer base.
Furthermore, the contiguous acreage in northern reeves county to be acquired in this transaction is well-positioned for alternative energy development due to its proximity to industry demand and current and planned transmission infrastructure. This aligns with Landbridge’s commitment to continue optimizing the commercial and strategic value of its acreage position.
Landbridge currently owns approximately 277,000 surface acres across Texas and New Mexico, primarily located in the heart of the Delaware sub-region in the Permian Basin. This region is the most active for oil and gas exploration and development in the United States.
The acquisition is subject to customary closing conditions, with the closing anticipated to occur in the fourth quarter of 2025. The executives of 1918 Ranch & Royalty expressed excitement about the agreement, believing that they have built a truly unique asset that will further increase Landbridge's high-quality acreage position. They look forward to working with Landbridge to continue creating value and building the business in the months and years ahead. As a result of these announcements, the company's shares have moved 0.72% on the market, and are now trading at a price of $57.08. For the full picture, make sure to review LandBridge Co's 8-K report.
