LandBridge Company LLC

Ladies and gentlemen, thank you for joining us and welcome to the LandBridge First Quarter 2026 results call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, please press star 1 again. I will now hand the conference over to May Harrington, Director of Investor Relations. May, please go ahead.

Good morning, and thank you for joining LandBridge's first quarter 2026 earnings call. I'm joined today by our Chief Executive Officer, Jason Long, and our Chief Financial Officer, Scott McNeely. Before we begin, I'd like to remind you that in this call and the related presentation, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, that could cause actual results to differ materially from results and events contemplated by such forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements please refer to the risk factors and other cautionary statements included in our filings with the SEC. I would also like to point out that our investor presentation and today's conference call will contain discussions of non-GAAP financial measures, which we believe are useful in evaluating our performance. These supplemental measures should not be considered in isolation or as a substitute for financial measures presented in accordance with GAAP. Reconciliations to the most directly comparable GAAP measures are included in our earnings release and the appendix of today's accompanying presentation. I'll now turn the call over to our CEO, Jason Long.

Thank you, Mae, and good morning, everyone. I'm pleased to report that we began 2026 consistent with our plan and our confidence in the model. with strong year-over-year growth and commercial momentum heading into Q2. Our second half 2026 growth drivers are on track, and as Scott will further detail, we are also raising our full year 2026 guidance. This decision is grounded in increased visibility and conviction in our commercial pipeline for the remainder of the year, combined with a more supportive macroeconomic environment. In the first quarter, we grew both revenue and adjusted EBITDA by approximately 16% year over year, achieving an adjusted EBITDA margin of 88%. Sequentially, results were softer, and that was anticipated. Q4 was a strong quarter, and Q1 is typically slower commercially, as certain service-related payments, including easement payments and new SUA execution, follow the rhythm of operator activity, which is naturally weighted toward the second half of the year as E&P programs ramp. We execute commercial deals with the goal of reaching the best and most accretive terms for our business over the long term. And we remain committed to that approach. Q2 commercial activity is already tracking ahead of Q1. Our second half catalysts are developing as planned. And the macroeconomic environment has become meaningfully more supportive since we last provided guidance. That combination accelerating internal momentum and more constructive external backdrop gives us the conviction to raise our full year outlook, not simply reaffirm it. The softer Q1 was anticipated, the confidence behind the raise is driven by what we can see in our pipeline today. On the commercial front, we closed several bolt-on acquisitions that further enhance the scale of our position, which now encompasses more than 320,000 surface acres across the heart of the Delaware basin. A portfolio we have intentionally built around fee surface ownership. Owning the service outright, whether than relying on leasehold or access rights that require renewal, gives us permanent control, long-duration optionality for every commercial use from produce water to data centers, and a compounding asset base that doesn't erode over time. That is the structural advantage, not an incidental one. That permanence is what allows us to offer multi-decade commitments to data center developers, long-duration infrastructure rights to pipeline operators, and deep commercial certainty to operators who need to plan multi-year development programs. Our strategy is focused on maximizing the economic output of our surface through active land management, a fundamentally different model from the traditional passive or minerals-focused landowner. We think of the surface as an active commercial platform, not a static asset. Surface acreage is critical for oil and gas development, power generation, digital infrastructure, and more. The same acre that generates produce water royalties from an oil and gas operator may also support a fiber corridor, an electrical transmission easement, and eventually a data center campus. Each layer of development makes the next more valuable, better access, more infrastructure, and greater certainty for the next user. That is the compounding dynamic at the heart of our model. In addition, our state line and southern positions are located on the Texas side of the Texas-New Mexico regulatory divide, an advantage that translates directly into commercial demand. Texas provides a more consistent and favorable permitting environment for produce water disposal, which means operators and midstream companies prioritize Texas side surface acreage. We are structurally positioned to benefit from this dynamic for the foreseeable future. Our relationship with WaterBridge is a genuine structural advantage. Water Bridge operates one of the largest water midstream networks in the Delaware Basin, and approximately 1.5 million barrels a day of that infrastructure sits on our land today, with additional permitted capacity on our land continuing to grow to enable future development. That gives us a front row seat to basin activity, deep operator relationships, and the ability to continuously identify and convert commercial opportunities that others simply cannot see. It's a compounding dynamic. As Waterbridge grows, so does our royalty base, and that growth does not require us to look at them. Beyond oil and gas, our active management approach continues to open new commercial opportunities. This quarter, we announced an agreement with PowerBridge for the lease and development of the Alpha Digital Data Center campus in Reeves County, Texas. PowerBridge has the option to lease up to 3,400 acres for a gigascale campus, a category of hyperscale digital infrastructure that requires hundreds to thousands of acres of contiguous land, co-located power, and long-duration site control. Initial power delivery is expected next year with large-scale generation coming online in 2028. We aren't disclosing specific economic terms at this stage, but the structure is consistent with our model, a long duration lease with royalty economics that scale with development, with no capital outlay required from leverage. This is an important milestone and a clear validation of our thesis. West Texas is an ideal location for data centers, low cost power, abundant water, fiber connectivity, and a favorable permitting environment. And critically, data center developers require certainty. certainty of long-term land control, utility corridor access, and the ability to expand the footprint as their needs grow. Our fee surface ownership model provides exactly that. Leasehold positions or acreage held on shorter term or renewable tenors cannot offer a multi-decade campus commitment. We can. Approximately 10 gigawatts of capacity has been announced in the region over the past two years, including the Alpha Digital Campus. We have higher conviction than ever that West Texas is on its way to becoming the next major data center hub in the United States. The power bridge agreement demonstrates the value of our acreage and commercial relationships and reflects our capital-efficient asset-like model. We retain ownership of the surface and monetize it through long-duration lease economics that scale with development. By layering multiple commercial uses on the same acreage, we grow revenue without additional capital investments. Alpha Digital is one of several advanced commercial opportunities in our pipeline, and the state of the pipeline today is the primary basis for our guidance race. Our model is designed for exactly this moment. The convergence of energy infrastructure demand, digital growth, and land-constrained development in the Permian Basin and the macro environment is, if anything, accelerating that convergence. I look forward to sharing more as these partnerships develop. Now let me hand it over to Scott, who will walk through the numbers behind our updated outlook.