Houston-based LandBridge manages some 220,000 surface acres in the Permian Basin— primarily the Delaware Basin. (Source: LandBridge)
Editor's note: This article has been updated with LandBridge's initial trading results.
Houston-based LandBridge Co. priced 14.5 million shares at $17 pre-IPO in a $246.5-million raise, falling below the $19 to $22 range anticipated on June 17. But as trading commenced, the stock rose well above the listing price, the company said.
LandBridge has additionally privately placed 750,000 shares priced at $17 each.
LandBridge owns and manages approximately 220,000 surface acres in Texas and New Mexico, primarily in the Delaware Basin. The stock opened June 28 at $19.48 and closed at $22.95 in light volume. The company said it expects the IPO to close on July 1.
RELATED
LandBridge Chair: In-basin Data Centers Coming for Permian NatGas
Shares are to begin trading on the morning of June 28 on the New York Stock Exchange under the ticker symbol LB.
Underwriters have a 30-day option to purchase an additional 2.175 million shares at the IPO price, according to LandBridge’s filings with the Securities and Exchange Commission (SEC).
Net proceeds will total $271 million if the overallotment option is exercised, the company reported.
LandBridge was formed in 2021 by private equity firm Five Point Energy LLC.
In the Stateline area along the Texas-New Mexico border in the northern Delaware Basin, the company holds 137,000 surface acres primarily in Loving, Reeves and Winkler counties, Texas, and Lea County, New Mexico, it reported in its SEC filings.
“… Approximately 11,527 identified well locations across seven formations exist within a 10-mile radius of our surface acreage in our Stateline position,” it reported.
Also in the northern Delaware, LandBridge holds 49,000 fee-owned surface acres and holds 14,165 additional surface acres leased from the federal Bureau of Land Management and from the state of New Mexico.
These acres are in Eddy and Lea counties, New Mexico, and Andrews County, Texas.
The position has 1,552 well locations identified by operators in four formations in the area, according to LandBridge.
In the southern Delaware, it holds some 34,000 surface acres in Reeves and Pecos counties, Texas, with 9,117 well locations in seven formations in the area, it added.
It also owns 4,180 gross mineral acres in the Delaware with a weighted average royalty interest of 23.9% and an average proved developed producing net revenue interest per well of 4.4%.
Lead book-running managers were Goldman Sachs and Barclays. Additional managers were Wells Fargo Securities, Citigroup, Piper Sandler and Raymond James. Co-managers were Janney Montgomery Scott, Johnson Rice & Co., Pickering Energy Partners, Texas Capital Securities and Roberts & Ryan.
Recommended Reading
International, Domestic Buyers Clamor for US Shale Gas M&A
2025-07-02 - Marketing is heating up for gassy assets in the Haynesville, Appalachia and Midcontinent, a sign that natural gas remains one of the bright spots in upstream portfolios, M&A experts tell Hart Energy.
Deep Potential: Permian Woodford Delivers as Exxon, Mewbourne Join In
2025-05-22 - Oklahoma’s finest Woodford Shale developers are applying their learnings to the Permian Basin, where exploration of the deep bench is in its earliest innings.
New E&P South Wind to Pursue Large-Scale M&A with PE Backing
2025-04-30 - After selling Fayetteville gas producer Flywheel Energy last year, the team is launching South Wind Exploration & Production with Kayne Anderson financing.
Flywheel Energy Acquires Terra’s Colorado Piceance Gas Assets
2025-07-14 - Flywheel Energy has quietly taken control of Terra Energy Partners’ Piceance gas asset, one of the largest in the basin, in a confidential deal. The deal expands Flywheel’s private natural gas empire beyond Arkansas’ Fayetteville Shale.
Widening Bid-Ask Spread Slows US Oil M&A
2025-07-01 - After a two-year dealmaking frenzy, the U.S. oil M&A engine is stalling as wild price swings and geopolitical tremors unsettle both buyers and sellers. M&A experts tell Hart Energy it could be months before big-ticket oil deals regain momentum.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.