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Permian’s LandBridge Prices IPO Below Target for $246.5 Million

Amy Or
·2-min read

(Bloomberg) -- LandBridge Co., the owner of land used in oil and gas production in the Permian Basin, raised $246.5 million in an initial public offering, pricing its shares below a marketed range.

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The Five Point Energy-backed company sold 14.5 million shares Thursday for $17 each after marketing them for $19 to $22, according to a statement.

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At the IPO price, LandBridge has a market value of about $1.2 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.

The company owns about 220,000 surface acres in and around the Delaware sub-basin in the Permian Basin, the biggest US oil patch, the filings show. It has contracts with WaterBridge Holdings LLC, a provider of water to the fracking industry that shares management with both LandBridge and Five Point.

LandBridge generates revenue from sources including surface use royalties, oil and gas royalties and sales of brackish water, according to the filings. Its corporate predecessor had net income of $63.2 million on $72.9 million of revenue in 2023, compared with a net loss of $6.4 million on revenue of $51.8 million a year earlier, according to the filing.

After the IPO, Five Point Energy and management including Chief Executive Officer David Capobianco will collectively own about 80% of the voting power, the filings show. The company intends to use the net proceeds to repay about $100 million of debt and to pay LandBridge Holdings about $171.2 million.

The offering is being led by Goldman Sachs Group Inc., Barclays Plc and Wells Fargo & Co. The company plans for its shares to begin trading Friday on the New York Stock Exchange under the symbol LB.

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