LandBridge to acquire 46,000 largely contiguous surface acres for $245M

LandBridge (LB) announced it has entered into a purchase and sale agreement to acquire approximately 46,000 largely contiguous surface acres in the Southern Delaware Basin known as the Wolf Bone Ranch for total consideration of $245M in cash from a subsidiary of VTX Energy Partners, a Vitol investment, subject to customary purchase price adjustments and closing conditions. The land also supports produced water operations, with current volumes of approximately 300 MBbls/d serviced by infrastructure owned and operated by VTX Energy, as well as assets owned and managed by WaterBridge Operating, an affiliate of LandBridge and a leading water midstream platform. Pursuant to the agreement, VTX Energy has agreed to a minimum annual revenue commitment to LandBridge of $25M for the next five years. LandBridge expects to fund the purchase price of the acquisition with a portion of the net proceeds from the private placement and borrowings under its debt facilities.