LandBridge, an oil property acquirer in the Delaware Basin formed by Five Point Energy and WaterBridge, announced terms for its IPO on Monday.
The Houston, TX-based company plans to raise $297 million by offering 14.5 million shares at a price range of $19 to $22. A new investor intends to purchase $80 million worth of shares in the offering (27% of the deal). At the midpoint of the proposed range, LandBridge would command a market value of $1.5 billion.
LandBridge was formed by Five Point Energy and its portfolio company WaterBridge to acquire, manage, and expand a strategic land position in the heart of the Delaware Basin to support the development of WaterBridge's large-scale produced water handling infrastructure and encourage broader industrial and commercial development. LandBridge owns approximately 220,000 surface acres in and around the Delaware Basin. The company generates multiple revenue streams, including from the use of its surface acreage, the sale of resources from its land, and oil and gas royalties.
LandBridge was founded in 2016 and booked $102 million in revenue for the 12 months ended March 31, 2024. It plans to list on the NYSE under the symbol LB. Goldman Sachs, Barclays, Wells Fargo Securities, Citi, Piper Sandler, and Raymond James are the joint bookrunners on the deal. It is expected to price during the week of June 24, 2024.
