ONEOK, LandBridge Ink Long-Term Lease for Permian Gas Processing Site
LandBridge signed a long-term lease with ONEOK for a Permian gas processing site and added roughly 37,500 acres to support produced-water and midstream projects across West Texas, boosting surface-use royalties and project activity.
HOUSTON (P&GJ) — LandBridge Company LLC said it entered into a long-term lease with a subsidiary of ONEOK Inc. for a natural gas processing facility in Loving County, Texas, while expanding its Permian footprint with the acquisition of roughly 37,500 surface acres across Loving, Reeves, Winkler and Ward counties.
The acreage adds high-quality pore space to support produced-water handling and other midstream uses and lifts LandBridge’s total holdings to more than 300,000 surface acres in Texas and New Mexico.
LandBridge reported continued growth in surface use royalties and revenues, citing higher activity tied to produced-water handling royalties related to WaterBridge’s Kraken development, new project easements and damages, and broader commercial activity on the company’s lands.
“As we advance our business plan and trajectory, we have shifted the paradigm of active land ownership with a strategy that maximizes the value of over 300,000 optimally located and largely contiguous surface acres,” said Jason Long, Chief Executive Officer of LandBridge. “We have already established partnerships with industry-leading operators and developers that provide reliable and diverse revenue streams, and have only scratched the surface in terms of the many compelling opportunities we are evaluating.”
“LandBridge delivered its sixth consecutive public quarter of strong growth, driven by increases across all key revenue streams and underpinned by a high-margin, highly capital-efficient and asset-light business model,” added Scott McNeely, Chief Financial Officer. “In addition, we have further diversified our revenue portfolio with the recent 1918 acquisition, which will provide our customers with increased access to pore space and surface acreage well-suited to alternative energy development.”