Landbridge Llc's Business Segments

LandBridge, established in September 2023 as a Delaware limited liability company, is a holding company whose primary asset is membership interests in OpCo, which it solely manages. The company owns or manages over 315,000 surface acres in the Delaware Basin sub-region of the Permian Basin, a significant area for oil and natural gas exploration and development in the United States. LandBridge's operations include managing land and resources to support energy and infrastructure development sectors such as oil and natural gas, solar power, power storage, digital infrastructure, non-hazardous oilfield reclamation, and solid waste facilities. Located near the Texas-New Mexico border, LandBridge benefits from infrastructure growth associated with resource development. The company shares a financial sponsor, Five Point, and management team with WaterBridge, a water midstream company operating extensive water handling infrastructure on LandBridge's land. Revenue sources include surface use royalties and fees, resource sales and royalties—including brackish water and caliche—and oil and gas royalties from approximately 4,400 gross mineral acres. LandBridge's business model relies on agreements where customers assume most operating and capital costs, allowing the company to generate significant free cash flow with minimal capital investment. Additionally, LandBridge maintains reciprocal agreements with Texas Pacific Land Corporation to improve development efficiency on its land.

The Company operates within a single operating and reportable segment, with all assets located in the United States. This segment structure corresponds to the internal reporting framework and the financial information reviewed by the Chief Executive Officer, who serves as the chief operating decision maker (CODM). The CODM evaluates performance and allocates resources based on consolidated financial data, primarily net income (loss) as shown in the consolidated statements of operations. Segment assets are included as total assets in the consolidated balance sheets. The Company discloses all significant segment expenses and relevant metrics used by the CODM for resource allocation and performance evaluation in the Financial Statements.