Keep pulling the thread on Chadd Garcia.
Surface use royalties, primarily from pore space, account for 73% of LandBridge's revenue.
Chadd Garcia estimates that Texas Pacific Land Corporation (TPL) currently trades at approximately 30 times EBITDA, while LandBridge trades at around 22 times EBITDA.
LandBridge receives a royalty of approximately 15 cents per barrel for produced water injected into its pore space.
Microsoft is being considered as the offtake partner for Chevron's planned power generation facility in Reeves County.
Bolt, a company run by Eric Schmidt and backed by TPL, aims to bring 10 gigawatts of data centers to the Permian Basin.
There is a thesis that data centers for large language models will relocate to the Permian Basin to access trapped natural gas for off-grid power.
GFL announced a deal to acquire Secure Energy for billions of dollars.
LandBridge has over 7.5 million barrels per day of total incremental pore space capacity for water disposal, with over 5 million barrels per day already permitted.
LandBridge management projects it can utilize 5 million barrels per day of its incremental pore space within the next five years.
LandBridge's projected growth in pore space utilization is expected to compound its free cash flow at a 25% CAGR over the next five years.
LandBridge management has stated that its incremental pore space growth will generate $300 million of incremental free cash flow.
The sponsor of LandBridge is investing $1 billion into a separate entity, PowerBridge, to drive next-generation opportunities like data centers.