The IPO Buzz: LandBridge (LB) Prices IPO at $17.00 – Well Below Range

Private equity-backed LandBridge (LB) priced its IPO at $17.00 – $2.00 below the bottom of its $19.00-to-$22.00 range – on Thursday night, June 27, 2024. LandBridge priced 14.5 million shares – the number of shares in the prospectus – at $17.00 each to raise $246.5 million. The stock is expected to start trading today – Friday, June 28, 2024 – on the New York Stock Exchange. Goldman Sachs, Barclays and Wells Fargo Securities led the joint book-runners’ team,  which included Citigroup, Piper Sandler and Raymond James. A cornerstone investor, Horizon Kinetics Asset Management LLC, had indicated an interest in buying up to $80 million of stock in the IPO – with no lock-up agreement, the prospectus says. LandBridge owns about 220,000 surface acres in and around the Delaware sub-basin in the prolific Permian Basin, which is the most active region for oil and natural gas exploration and development in the United States, the prospectus says. Houston-based LandBridge shares a financial sponsor – Five Point Energy, a  Houston private equity firm – and its management team with WaterBridge, one of the largest midstream water companies in the United States, according to the prospectus. WaterBridge runs a large-scale network of pipelines and other infrastructure in the Delaware Basin. As of June 15, 2024, the WaterBridge pipeline network and other infrastructure handled about 2.0 million barrels per day (bpd) of water associated with oil and natural gas production, the prospectus says. ““We receive royalties for each barrel of produced water that WaterBridge handles on our land as well as surface use payments for infrastructure constructed on our land. For every 100,000 bpd of incremental produced water that WaterBridge brings onto our surface, we expect to generate royalty fees of $4.0 million to $6.0 million per year, including skim oil revenues.” LandBridge says its revenues come from multiple sources, including oil, gas and mineral royalties; the use of its surface acreage and the sale of resources from its land. The company also plans to pay a dividend, but the amount of the dividend has not been determined yet, the prospectus says. LandBridge is profitable, according to financial statements in the prospectus. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on our website: IPOScoop.com ) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.