LandBridge Company LLC(LB) - 2024 Q3 - Quarterly Report

Financial Position - Total current assets decreased from $52,278,000 as of December 31, 2023, to$31,606,000 as of September 30, 2024, representing a decline of approximately 39.5%[23] - Cash and cash equivalents decreased from $37,823,000 to$14,417,000, a reduction of about 61.8%[23] - Total assets increased significantly from $288,949,000 to$689,888,000, reflecting an increase of approximately 138.0%[23] - Long-term debt rose from $108,343,000 to$242,430,000, indicating an increase of about 123.8%[23] - Total liabilities increased from $138,202,000 to$285,871,000, marking an increase of approximately 106.6%[23] - Total shareholders' equity attributable to LandBridge Company LLC reached $97,209,000 as of September 30, 2024, compared to$150,747,000 previously, showing a decrease of about 35.4%[23] - Noncontrolling interest amounted to $306,808,000 as of September 30, 2024, with no prior balance reported[23] - As of September 30, 2024, total debt amounted to$281.9 million, a significant increase from $130.5 million as of December 31, 2023[78] Revenue and Income - Total revenues for the three months ended September 30, 2024, were$28,487,000, a 60% increase from $17,799,000 in the same period of 2023[24] - Net loss for the three months ended September 30, 2024, was$(2,756,000), compared to a net income of $16,633,000 for the same period in 2023[24] - Operating income for the three months ended September 30, 2024, was$3,187,000, down from $19,104,000 in the prior year[24] - The company’s net income attributable to LandBridge Company LLC for the three months ended September 30, 2024, was$2,656,000[24] - For the nine months ended September 30, 2024, LandBridge Company reported a net loss of $49.6 million compared to a net income of$60.7 million in the same period of 2023[26] Expenses - Interest expense for the three months ended September 30, 2024, increased to $7,071,000 from$2,893,000 in the same period of 2023[24] - Resource sales-related expenses decreased to $423,000 for the three months ended September 30, 2024, from$1,003,000 in the same period of 2023[24] - Share-based compensation for the nine months ended September 30, 2024, was $84.2 million, a significant increase from a negative$24.4 million in 2023[26] - The Company incurred $431.3 million in acquisitions during the nine months ended September 30, 2024, with net cash used in investing activities totaling$432.0 million[26] Acquisitions and Investments - The Company acquired approximately 11,000 acres of land in Lea County, New Mexico for a total purchase consideration of $26.4 million, including$0.3 million in transaction costs[69] - On May 10, 2024, the Company acquired approximately 103,000 fee surface acres in Loving and Winkler Counties, Texas, and Lea County, New Mexico for a total purchase consideration of $362.6 million, including$2.1 million in transaction costs[70] - The company acquired approximately 1,280 surface acres in Winkler County, Texas, for a total purchase price of $20.0 million on November 1, 2024[128] Shareholder Information - The company reported a total of 17,425,000 basic shares outstanding as of September 30, 2024[24] - As of September 30, 2024, LandBridge had 17.4 million Class A shares and 55.7 million Class B shares outstanding[36] - The Company granted 768,211 Restricted Share Units (RSUs) during the nine months ended September 30, 2024, with an average grant fair value of$31.23 per unit[113] - A dividend of $0.10 per share on Class A shares was declared on November 5, 2024, payable on December 19, 2024[100] Tax and Compliance - The Company recorded an income tax benefit of$1.1 million for the three months ended September 30, 2024, compared to an income tax expense of $0.1 million for the same period in 2023[74] - The Company had$8.7 million of offering costs included in shareholders' and member's equity as of September 30, 2024, all of which were paid by that date[51] - The Company was in compliance with all financial covenants as of September 30, 2024[88] Market Conditions and Risks - The Henry Hub spot market price for natural gas was $2.65 per MMBtu, and the posted price for oil was$68.75 per barrel as of September 30, 2024, indicating ongoing price volatility[242] - The company does not currently intend to hedge its indirect exposure to commodity price risk, which may impact future cash flows[243] - A 1.0% increase or decrease in the weighted average interest rate would impact the company's interest expense by $2.8 million per year[247] Future Plans - The company plans to utilize proceeds from the IPO to repay outstanding borrowings and support operational growth[32] - The Company plans to adopt new segment reporting guidance effective for fiscal years beginning after December 15, 2023[67]