LandBridge Company LLC

to welcome everyone to the LandBridge Third Quarter 2024 results. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. I would now like to turn the conference over to Jason Long, our CEO.

You may begin.

Good morning everyone and thank you for joining our third quarter earnings call. Our results demonstrate the strength and momentum of our business as we continue to benefit from a sustained level of activity in the Delaware Basin. During the quarter, we delivered 60% year-over-year revenue growth, 62% year-over-year adjusted EBITDA growth, and 88% adjusted EBITDA margins. Notably, we continue to grow the percentage of revenues derived from fee-based arrangements versus oil and gas royalties to further mitigate our direct exposure to commodity price fluctuations. In the third quarter, non-oil and gas royalty revenue streams, which include surface use royalties and revenues and resource sales and royalties, accounted for 90% of overall revenues, up from 83% last quarter and 65% in the same quarter last year. And by actively managing our land and resources, we continue to position ourselves to capitalize on a broad array of commercial opportunities at the Texas-New Mexico state line. As mentioned last quarter, West Texas is an increasingly popular area for renewable energy and digital infrastructure development, and our acreage is ideally situated for data centers to support AI and cloud computing services, which require low-cost fuel, water for cooling, and fiber optic infrastructure. As a reminder, in July, we signed a non-binding letter of intent for a long-term ground lease for the development of a data center. This month in November, we executed a lease development agreement for the development of a data center and related facilities across approximately 2,000 acres of our land in Reeves County, Texas. The lease development agreement includes, among other things, a non-refundable $8 million deposit due in December 2024 for a two-year site selection period and construction of the data center within a subsequent four-year period. Upon initiation of construction of the data center, the counterparty will make escalating annual lease payments along with additional payments based on the net revenue received with respect to the power generation facilities to be located on the lease property. We also continue to expand our land holdings. In November we acquired an additional 1200 surface acres in Winkler County, Texas, and are under contract to acquire an additional 5800 acres in Lee County, New Mexico. The Wheeler County acquisition is adjacent to East Stateline Ranch and includes water infrastructure that generates revenue under a long-term contract with an active sand mine. The Lee County Opportunity is strategically located just north of our Stateline assets. We are looking forward to continuing to identify opportunities to build out our surface acreage as well as new prospects to develop additional revenue generating infrastructure projects. In short, we believe our performance to date reflects our unique and promising business model which is characterized by diversified revenue streams, industry-leading margins, and low capital intensity. We see no shortage of opportunities ahead to continue growing and creating substantial value for our shareholders. Now I'll turn it over to Scott to go through the numbers in more detail.