LB Deals

LandBridge Announces Long-Term Surface Use and Pore Space Reservation Agreement with Devon Energy

Published August 06, 2025 at 12:30 PM

HOUSTON--(BUSINESS WIRE)--LandBridge Company LLC (NYSE: LB) (“LandBridge”) today announced it has executed a 10-year surface use and pore space reservation agreement with Devon Energy Corp. (NYSE: DVN) (“Devon”) to support Devon’s operations in the core of the New Mexico Delaware Basin. Under the agreement, LandBridge will provide Devon with 300,000 barrels per day (bpd) of pore space capacity on its East Stateline Ranch and Speed Ranch surface acreage. The pore space reservation will commence

Related Questions

Does the agreement contain any covenants or restrictions that could limit LandBridge’s ability to enter into other agreements in the Delaware Basin? What is the pricing structure for the pore space reservation – is it a fixed fee, variable per barrel, or a combination? Will this agreement increase LandBridge’s operating expenses (e.g., surface maintenance, infrastructure) and how are those costs accounted for? How will the 10‑year surface use and pore space reservation agreement with Devon affect LandBridge’s revenue and cash flow forecasts? What is the financial term of the agreement (e.g., royalties, lease payments, profit sharing) and how will it affect LandBridge’s earnings per share? How does the 300,000 bpd pore space capacity compare to LandBridge’s existing capacity and utilization rates? What is the impact on LandBridge’s reserve valuations and how might this affect analyst recommendations? What is the expected impact on LandBridge’s free cash flow and dividend sustainability? What is the risk profile for LandBridge, considering potential regulatory, environmental, or operational challenges associated with the 10‑year lease? Will the agreement increase LandBridge’s exposure to oil price volatility given the 300,000 bpd capacity is tied to Devon’s production volumes? How might this transaction affect LandBridge’s stock volatility and trading volume in the short‑term? Are there any upside participation provisions (e.g., profit sharing above a certain production threshold) that could enhance upside for LandBridge? How does this deal impact LandBridge’s balance sheet—will there be additional capital expenditures or debt incurred to support the agreement? How does this deal compare to similar surface‑use agreements that competitors (e.g., Viper Energy, Oasis Petroleum) have negotiated in the Delaware Basin? What is the timeline for the commencement of pore space reservation and any milestone payments?