• Acreage offers existing cash flows and significant future revenue growth opportunities
• Increases LandBridge holdings to ~272,000 surface acres including previously announced
• transactions
• Concurrent private placement to partially fund transaction 

LandBridge Company 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 $245 million in cash from a subsidiary of VTX Energy Partners, LLC, a Vitol investment, subject to customary purchase price adjustments and closing conditions.

Located adjacent to LandBridge’s existing surface acreage in Reeves County, Texas, the Wolf Bone Ranch is well-positioned at a strategic intersection of oil and natural gas exploration and transportation, with access to the Waha Gas market hub. 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 LLC, 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
$25 million for the next five years.

“This acquisition demonstrates our continued commitment to our active land management strategy across the Delaware Basin, and we see significant opportunities for a broad range of industrial development and revenue growth on the Wolf Bone Ranch,” said Jason Long, Chief Executive Officer of LandBridge. “These opportunities include commercial real estate opportunities along the over seven miles of Highway 285 frontage and potential digital infrastructure and renewable energy projects.”

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. 

LandBridge owns approximately 221,000 surface acres across Texas and New Mexico, located primarily in the heart of the Delaware sub-basin in the Permian Basin, the most active region for oil and natural gas exploration and development in the United States. LandBridge actively manages its land and resources to support and encourage oil and natural gas production and broader industrial development.

KeyFacts Energy: Acquisitions & Mergers news