How does the 300,000 bpd pore space capacity compare to LandBridge’s existing capacity and utilization rates? | LB (Aug 06, 2025) | Candlesense
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How does the 300,000 bpd pore space capacity compare to LandBridge’s existing capacity and utilization rates?

Answer

The press release you quoted tells us that LandBridge Company LLC has signed a 10‑year surface‑use and pore‑space reservation agreement with Devon Energy, reserving 300,000 barrels per day (bpd) of pore‑space capacity on its East Stateline Ranch and Speed Ranch acreage.

However, the release does not disclose any figures about:

  1. LandBridge’s total existing pore‑space capacity (i.e., the total number of barrels per day that its surface‑leased lands can accommodate across its entire portfolio).
  2. Current utilization rates (i.e., what percentage of that total capacity is already being used by existing partners or operations).

Because those baseline numbers are missing, we cannot calculate a direct comparison such as “the new 300,000 bpd represents X % of LandBridge’s total capacity” or “it will increase utilization from Y % to Z %.”

What we can say, given the information available

Item Information from the release
New pore‑space reservation for Devon 300,000 bpd, starting with the 10‑year agreement.
LandBridge’s existing capacity Not disclosed in the announcement.
LandBridge’s current utilization Not disclosed in the announcement.

How you could assess the significance of the 300,000 bpd figure

If you need to understand how this new reservation fits into LandBridge’s overall business, you would typically gather the following data points from other sources (e.g., LandBridge’s SEC filings, prior press releases, investor presentations, or industry databases):

Data Needed Why it matters
Total pore‑space capacity owned or leased by LandBridge Allows you to calculate the proportion that 300,000 bpd represents (e.g., 300,000 bpd ÷ total capacity).
Current utilization rate (percentage of total capacity already booked) Shows whether the new reservation is adding to an under‑utilized asset base or further stretching an already‑tight capacity.
Historical capacity growth trends Helps gauge whether a 300,000 bpd addition is a modest incremental step or a major expansion relative to past growth.
Geographic distribution of existing capacity Knowing whether the new reservation is in a region where LandBridge already has a strong presence (e.g., the Delaware Basin) can indicate strategic synergies.

Possible scenarios (illustrative only)

Scenario Total existing capacity Utilization before the deal Impact of 300,000 bpd addition
A. Large, under‑utilized asset base 1,500,000 bpd 50 % (≈750,000 bpd used) 300,000 bpd adds ~20 % of total capacity and could raise utilization to ~70 % if filled.
B. Small, near‑full asset base 350,000 bpd 90 % (≈315,000 bpd used) 300,000 bpd would more than double total capacity, effectively creating a new, separate “bucket” of capacity for Devon.
C. Moderate size, moderate utilization 800,000 bpd 70 % (≈560,000 bpd used) 300,000 bpd represents ~38 % of total capacity and could lift utilization to ~80 % if fully booked.

These numbers are purely hypothetical and are meant to illustrate how the 300,000 bpd figure could be contextualized once the missing data is obtained.

How to obtain the missing data

  1. SEC filings (Form 10‑K, 10‑Q, or 8‑K) – Companies often disclose total lease‑hold capacity and utilization metrics in the “Operating Metrics” or “Management Discussion & Analysis” sections.
  2. Investor presentations/webcasts – Slides on “Pore‑Space Capacity” or “Asset Utilization” are common for mid‑stream and land‑lease operators.
  3. Industry data providers (e.g., Rystad, Wood Mackenzie, IHS Markit) – They sometimes publish aggregated capacity figures for publicly listed land‑lease firms.
  4. Historical press releases – Prior announcements of new leases or capacity expansions may include total capacity figures.

Bottom line

  • What we know: LandBridge has reserved 300,000 bpd of pore‑space capacity for Devon under a 10‑year agreement.
  • What we don’t know from this release: The size of LandBridge’s overall pore‑space inventory and how much of it is already in use.
  • What you need to do to compare: Locate LandBridge’s total capacity and current utilization metrics from its public disclosures or third‑party industry data, then calculate the percentage that the 300,000 bpd reservation represents.

If you can provide those additional figures (or point to where they are disclosed), I can quickly run the comparative calculation for you.

Other Questions About This News

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? 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? 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?