Q2 2025 LandBridge Company LLC Earnings Call
Speaker #3: Hello , and thank you for standing by . My name is Regina , and I will be your conference operator today . At this time , I'd like to welcome everyone to the Land Bridge second quarter 2020 results conference call .
Speaker #3: If you'd like to ask a question during this time , simply press star , then the number one on your telephone keypad . To withdraw your question , press star one .
Speaker #3: Again , I would now like to turn the conference over to May Harrington , Director of Investor Relations . Please go ahead .
And finally, our symbiotic relationship with Waterbridge as we have discussed regularly, since the launch of our IBO process in 2024, we see this relationship as 1 of lambridge biggest strategic advantages, providing Superior visibility into long-term, trends, and ultimately Revenue growth. We provide Waterbridge, access to underutilized force base, and exchange for market-driven, surface royalties from each Barrel produce water Handle by Waterbridge, on our land, as well as market-driven surface. Use payments for infrastructure constructed on our land,
This relationship with the largest pure-play integrated water infrastructure company in the Delaware Basin helps to drive reliable recurring revenue for our business and compelling returns for our shareholders.
Each agreement with Waterbridge, is vetted and approved by an established well-tested corporate governance process, and fully disclosed via public violence.
Turning to more recent developments, I'm pleased to share that our team has continued to make commercial progress, executing a number of new, high-impact agreements this year.
First we recently executed a 10-year surface use and pore space. Reservation agreement with Devon energy securing 300,000 barrels. A day of poor space capacity on our East State Line and speed ranches to accommodate long-term water takeaways and Disposal for developments concentrated in the core of the New Mexico, Delaware, basin
This agreement will begin in the second quarter of 2027 and includes an obligation to deliver at least 175,000 barrels per day.
Informative Invasion, power generation Investments.
Finally, we're excited to announce a strategic partnership with a leading vertically integrated power generation and solutions provider to accelerate the development of scalable, resilient, and sustainable energy infrastructure in West Texas.
This collaboration strengthens, our platform by aligning our assets with a trusted partner capable of delivering cost-effective long-term power through Power purchase agreements. This initiative is expected to support energy, intensive customers, including data centers while significantly enhancing the value of our asset portfolio.
According to recent regulatory developments in Texas, we're pleased to note that recently announced changes governing produced water handling facilities are not only beneficial for our company, but are ones we fully support. These updates shine a spotlight on our responsible Space Management strategy. Underscoring that produced water is not a simple commodity, instead, our historical and current operating approach prioritizes the sustainable use, resulting in superior asset longevity and flow assurance, which in turn delivers a truly differentiated value of our position for our stakeholders.
Make no mistake. We are the solution to the issue. These regulations aim to address not part of the problem. Our approach is fundamentally different and We Believe essential for long-term success in this evolving landscape.
We're looking forward to the second half of the year and continuing to identify new opportunities to increase revenues. I'll now turn the call over to Scott to walk through the numbers.
Thank you, Jason and thanks and welcome to everyone. Joining us on the call today is Jason already stated. We're pleased with the quarter and performance throughout the first half of 2025. Our second quarter revenues increased to 47.5 million up, 8% sequentially, and 83%, year-over-year sequential Revenue growth for the quarter was driven by surface use royalties and revenue which increased 31% sequentially. This growth was driven by an increase in easements and other surface related Revenue, including several large, renewal payments, multiple new projects, and an overall increase in commercial activity on our acreage.
Overall Revenue growth was, partially offset by sequential declines across our 2. Other Revenue categories resource sales royalties experience a 26%. Sequential decline driven by lower brackish water sales and royalty, volumes, and oil, and gas. Royalties declined. 19% sequentially driven by a decrease in net royalty production with volumes, falling from 923, Boe, A Day, in q1. 2025 to 814 VOE a day in Q2 255.
Overall, we have successfully shifted, our Revenue, mix in favor of fee, based Arrangements versus royalties that fluctuate with commodity prices today. Such Arrangements account for a record, 94% of total revenues.
The efficiency of our Capital model continues to deliver strong adjusted. Evida 42.5 million representing a sequential increase of 9% and 81% year-over-year with an 89% adjusted ebit of margin.
We generated free cash flow of approximately 36.1 million and free cash flow margin of 76% which is in line with our previously. Discussed long-term free cash flow margin, expectations of about 70%
We ended the quarter with total liquidity of 95.3 million including cash and cash equivalents of 20.3 million and approximately 75 million under our revolving credit facility.
Our Capital allocation priorities remain the same for 2025. And we continue to execute these priorities, which as a reminder include maintaining a strong balance sheet to maximize Financial flexibility over time.
We ended the quarter with $374.3 million of debt outstanding under our Term Loan and revolving credit facility, which is down from $379.3 million at the end of Q1 2025.
Our net leverage ratio was 2.4 times compared to the 2.5 times. At the end of the first quarter.
We remain committed to returning Capital to shareholders, and have declared a quarterly dividend to shareholders of 10 cents per share. Our dividend provides shareholders with the opportunity to share in our successes.
Finally, we will continue to evaluate a host of value. Enhancing land Acquisitions in the second half of the year which will further solidify our standing in the marketplace.
In anticipation of the execution of the dbr solar opportunity with a large public renewable, energy developer and operator. We are adjusting our adjusted ebit. Guidance range for full year 2025 to between 160 million and 180 million.
This adjustment is primarily driven by an expectation that the majority of the revenue associated with the DBR solar opportunity will be recognized later than initial revenue expectations, following the year 2025, based on an earlier execution of the opportunity.
And now we'd like to open up the line for questions, operator.
We will now begin the question-and-answer session. In order to ask a question, simply press star, followed by the number 1 on your telephone keypad. Our first question will come from the line of Charles Meade with Johnson Rice. Please go ahead.
And, uh, can you just can you, uh, elaborate a little bit more on, uh, on the history of this project and, and where you? Uh, you know, obviously you had, you had that 10 million, uh, of of ibida Revenue in in 25. But can you just kind of put the put, the overall timeline in context? And what this, what this? I guess, what, precipitated, the shift and and perhaps, as part of that
It seems like it's a shift in that it hasn't disappeared, but maybe you can just confirm that.
Yeah, no. Um good morning Charles happy to you. So if you recall this solar project was 1 where we had worked through you know, effectively all of the prep work which includes the tax abatement work, the coordination, with the mineral owners and so on. Um on part of our surface position that uh was part of the original acquisition, we closed on in 2021 and so we had worked through uh the preparation for several years. You know, we had planned to put it out to Market uh to a developer last year. Um this the site itself is located immediately adjacent to where the primary site is that's associated with the uh, the data center uh opportunity that uh, you know, we work through last year. And so we uh, you know, we punted on marketing that site, uh, to the solar developers uh, until after that was wrapped up so that, you know, that was obviously we got that option agreement in place for the data center at the end of 24. Um and as such it's going to flip and put the the data uh excuse me. The Solar facility to Market here in early
25. Um, you know, we had baked in about 10 million expected just based on input from our consultants, in terms of what you could typically see for a project like that this year. Uh, but as I've spoken to, you know, in the past, you know, all of that was obviously subject to commercial progress progress discussions and so on and so you know, ultimately this was 1 where you know, we got good traction with several. Uh, several really good brand name developers, you know, have landed on a great partner look forward to sharing more details on that, but just given uh, you know how timing is playing out and when we expect those payments and that Revenue to be made and recognized um, kind of Shifting out of this year, um, is just, you know, kind of the reality at this point. And so you know, we're really excited to get it done. We think it's again it's another Testament to our ability to execute on a wide variety of opportunities. Um, but as I've said many times before, you know, we're we're always focused here on long-term value creation not on accelerating you know, cash flows of that.
Is just not the most economic outcome for the company. I think this is just a very good example of that.
Got it, that's helpful. I appreciate it. And then, uh, as a follow-up, I wanted to uh, uh, ask about the, uh, the deal that you guys signed, uh, with Devin to, to bring to bring uh, produce water to, uh, East State Line and speed Ranch. And, and uh, you know
I really the the
My understanding is that Speedway pipeline which I guess technically isn't isn't uh lambridge but you guys are are are you know, building, you know building uh, you know, building capacity on that line. So can you just put Devin that Devin deal in the context of of the speedway line, that that is going to be coming to, uh, to your speed range?
Yeah. I mean you could see in the map, there are certainly some capital synergies for Waterbridge, as it relates to this Devon project and the broader Speedway project. Um, you know, I think From landbridge perspective, it's just as as an incredibly exciting opportunity. I mean, this was 1, you know where, I think we, we clearly have a close relationship with the Devin team via Waterbridge and their, you know, their interests in Waterbridge, uh, but I think this is just a real Reflection from a very smart prudent, operator, uh, who's looking out at kind of, the realities of what's needed in from a Force Base perspective to accommodate future growth. Um, you know, from our view, this is somewhat of an inflection point. Certainly, a new contract structure where you've got an operator going directly to a landowner saying, I need to lock up large amounts of pore space over an extended period of time. And I'm willing to give you a meaningful, guaranteed to backs, stop that because that's how critical pore space is going to be to my to my development program going forward. And so that was ultimately what you know kind of catalyzed the discussion between landbridge and Devon.
Directly and led to this. Now, how it relates to Speedway, this is again, um, from water Bridges perspective. They, they complement each other, uh, but not necessarily the same. I think this is, um, great momentum. Both from the Waterbridge side, and clearly from the landbridge side,
Yeah, the only thing I would add Charles is that this is this definitely volumes and and pore spaces being reserved um up on speed Ranch but also on our East State Line Ranch. So it's a combination of both.
Excited about the opportunity here. Directly with landbridge.
Got it. That's great detail. Thanks Jason. Thanks Scott.
Yeah, thank you. Thanks. Charles
Our next question comes from the line of Derek Whitfield with Texas Capitol. Please go ahead.
Uh, good morning all. Congrats on your operational accomplishments over the last quarter, uh, with my, uh, first question I wanted to ask for your thoughts on the arrows, acquisition by Wes
While we question it from a value recognition perspective, it's it it it seems to support your thesis for Value, the value, of course space. So I'd love to hear your thoughts on that.
Yeah, yeah, I think that's, you know, I think we I'll answer this from Lambert's perspective. I mean, I think the biggest takeaway from Lambert's perspective, is you read through that is the criticality of poor space. And if you look at the headline, um, you know, that was put out that first slide that was put out by Western. You know, they flag, uh, the McNeil Ranch in the pore space offered by McNeil Ranch, as being such a big piece of, uh, of the value. That's ultimately brought, you know, to the table here. Um,
You know, I think more broadly speaking, you know, obviously, as I talked to evaluation, there's a little bit to to unpack there, um, as this very typical m&a deals. But look, I mean, again, you know, this shows, you know, Western is very focused on pore space. I mean, that's shown not just through this deal, but if you recall, we announced our deal with them earlier, um, as part of their Pathfinder pipeline, I mean, and so it all kind of circles back to, you know, for responsible water handling particularly going forward, this pore space, the surface access is just so so critical. And you're seeing that manifest itself, you know, directly through deals with us. Like we've seen with Devin like we've done with uh, Western previously. But you're seeing it on the actual Midstream side, where, you know, very smart mainstream operators as they look through m&a, with folks like as are very much valuing the pore space that they have to offer. So all of this reinforced, I think reinforces the thesis and the narrative that we've been communicating to the market. Historically.
Great and for my follow-up, I wanted to shift the focus uh to your power announcements to the quarter. Are we safe to assume the IPP reference would be a new development for the Delaware IE not cpv based in energy or based in ranch energy and uh that that IPA PP has a line of sight to a combined cycle, gas turbine, given the tightness we're seeing right now among the oems
Yeah, so this I hesitate to give too much detail now because the the, the larger public IP wants to put out a joint, press release here in the coming weeks, um, to speak to a lot of those details Derek. Um, I'll just say it's it's a brand name. Um, and 1, just when that release comes out, I think we'll speak a lot to, to the offering. So hate to put that 1 on pause, but I think we look forward to getting more details out here, uh, over the next few weeks.
That's terrific. I'll leave it there.
Okay. Thanks. Derek. Appreciate it.
Our next question comes from the line of John McKay with Goldman Sachs. Please go ahead.
Hey, good morning guys, thanks for the time. I wanted to start, maybe just on on the Divan deal. And if we look across the footprint right now, I guess. Could you just catch us up on? Really like how much pore space you guys have is is spoken for at this point and then maybe on a related piece, how you're looking about looking around that kind of land acquisition Market to uh, add to that. Thanks.
Yeah. I mean as you think about, you know what, we've identified through a Force Base standpoint. Um we've we've identified you know way more than 5 million barrels a day of potential access to capacity, uh and that's the underutilized pore space. As you think to answer your second question. Um, we continue with our geological teams, to to look for additional Force Base, and underutilized access to land, as, as we expand our position. Um, so that's
That's definitely top of mind.
And that's fair and maybe just looking at the quarter. Um, easements were stronger. You guys kind of touched on that were, were any of these renewal pay payments kind of 1 offset? Or is this kind of a new good run rate?
And then similarly resource sales being a little softer, I think it makes sense to give an activity levels. But also just wondering if there's any kind of more 1 off in there. Thanks.
yeah, I know there's there's always going to be um there's always going to be a mix of of renewals versus upfront payments and so you know it
Kind of important to note that. I think the bulk of The Upfront payments. We get, though, typically manifest themselves down the road, is some type of renewal, very rarely do. We get like a 1-off and then it's done. Um, but, but certainly not not never, um,
The rest, you know, obviously surface use royalties saw a great quarter there. Um, I think largely in line with our expectation. Um, yeah, you know, ultimately, I think the way the way you need to think about it is, it's not
It's not going to be like a run rate going forward, so to speak where that will be repeated, but I think you'll start to see it just compound over time and there'll be a little bit of lumpiness, kind of quarter over quarter. But um, as we've seen historically and kind of continue to progress today. Um, you know, the the slope is up to the right and that that will continue
All right, that's it for me. Appreciate the time. Thank you. Yeah, thanks John.
Our next question comes from the line of Kevin McCree with Pickering Energy Partners. Please go ahead.
Hey, good morning. Um, I wanted to ask for a little bit more color on the new Texas Railroad Commission guidelines on injection pressure. Can you maybe summarize the new rules and compare that to your internal view of water disposal and competitive position in the basin?
Yeah for sure. Um you know as we as we thought about this, you know if you if you put the the both the Water Bridge and the lane bridge out on um
What puts us in a really unique position as our access to this, large contiguous block of acreage and and with that we have the ability to make sure that we're spreading out the injection um that really for the most part. As you think through the new rules and regulations is what they're really, really focused on is making sure we're not concentrating that injection in specific areas. So really having the ability to spread that out.
Uh, which in turn, um, gives you access to to lower pressure. Um,
As you think through, you know, just our strategic ability, I would go back to the fact that our, the contiguous nature of our of our footprint. There's that does not really exist along the state line in and around New Mexico. And so it puts us in a really good position to capitalize on a lot of these new volumes coming in from New Mexico. Yeah, I mean I would just add, you know,
We on the Water Bridge side. We we put out a press release endorsing the new the new regulations. We think it's great for the industry. We think there's a real healthy Focus now on how do we add longevity to the industry? Uh and how do we be more thoughtful about these longer term approaches? I think we're we're really proud in the sense that, you know, both both from the Water Bridge and the landbridge side, it mirrors, our operating philosophy and kind of the philosophy. We've always deployed when we think through, you know, building out our assets and our company and it was the recognition was the recognition of the problems. Um, you know, from these differing approaches these over concentration, uh, of assets. That ultimately led us to start, you know, landbridge back in 2020 2021. Um, we knew large contiguous pore space that had been unutilized or underutilized historically would be immensely valuable for Waterbridge but but again for the broader industry and so um
We think it's great. We think it's very smart for The Regulators to be focused on that, you know, it's again, it's something that we have pushed ourselves, um, both from our Waterbridge seats, and our landbridge seats. And I think, again, it really reinforces the fact that we had this differentiated value proposition to offer not just Waterbridge. But any, uh, anyone in the industry that needs to have that surface and Force Base access? Um, you know and so it's uh, it's great. It's great to see, you know, call it the spotlight shine on this now because we do think it's important. And again, we do think it highlights. What it is? We bring to the table.
Thank you for that. And I think those are important details. Um,
You know, definitely important for the uh the landbridge story for my follow-up. Uh, you know, any thoughts on the long-term potential impact of the Devon deal or even some high-level thoughts on the royalty rates compared to your current rates. I I realize you may be hesitant to give too many details.
Yeah, so we can't um you know we can't provide the exact royalty rate. I'll say that the, you know, the the rates were getting today. Uh for deals. This 1 included, certainly a line with our view of the prevailing market rate at the moment. Um, and so, you know, we feel very confident that you know how we think through rate, structure versus our, you know, our differentiated value proposition is very much aligning to, um, call the commercial success that we would hope to see. And I think, you know, the Market's going to proving out our view. Um, I'll I'll leave it at that. But I mean, as you
Would imagine, you know, great, great impact for us. Obviously, from a financial perspective as this comes online here, uh, in early 27.
Thanks Scott.
Thanks man.
Our next question comes from the line of Alexander Goldfarb with Piper Sandler. Please go ahead.
Hey uh, good morning morning down there. Uh just to uh 2 questions. Uh, the first is on the power generation deal that you guys announced. Uh,
Specific data center project or this is a sort of a generic power generation deal that would apply for any uh projects uh data center projects down there.
No good, good questions out. So the um the agreement that we're talking through here is directly between landbridge and the IPP um you know, there is the potential for 5 Points, powerbridge platform to step in in some capacity, but that's that's by no means firm either way. Um, you know, I would say this was 1, where, you know, the IP saw the value that, that landbridge brought to the table was happy to do a deal with us. I think that said and as if we've as we've said in the past, you know, the the beauty of the 5-point ecosystem is they've got you know, they've got these different enabling entities to ensure that deals can get across the finish line to the benefit of all companies. And so when we think through what powerbridge could bring to the table here, it's really, it's really a question of is there, is there a gap between landbridge and the IPP where maybe powerbridge, stepping in kids could fill that Gap to ensure this project gets brought online. Um,
Uncertain, whether or not that's needed at this point in time. But again, it's a valuable tool. I think that we have available to us. Yeah, I mean, the 1 thing I would add is that the, the IPP is, you know, they they saw the need for the power, uh, in the region just in general, not not just as it related to Data Center opportunities. So um, we we see this as a as a great opportunity on on all fronts
And did you say the entity is called powerbridge? Or you were just using that? That is no. So that is the 5-point entity that was announced earlier this year. Um, but that is run by Alex. That is that is not this IP. Now, this is a totally independent public IP. Um,
That is that is not in any way associated with uh, with 5-point outside of again. The potential that power Bridge which is a, the separate 5-point entity could step in if there is a need
okay, and then the second question is,
You know, you guys, you announced the Devon deal. I don't know if you announced all the economics of that, but obviously that doesn't take effect until you know 2027, you know, the data center thing is announced, but obviously that takes years, you guys clearly want to grow ebita. So, as we think about announcements that you make it sounds, I mean just based on what you've announced so far. It's there's like a 12 to 24 month, you know, sort of lead time if you will before the ebit dot starts flowing or more like 24 months if you will, is that
The way we should think about it. So if we want to sort as we model your growth over the next number of years, we should think about, hey, if a deal hasn't been announced by X date, you know, that means that Revenue growth is going to take 2 years longer before. We're just trying to get a sense of you guys are very active, but obviously these things take a while to manifest and drop to the bottom line. Uh, so just trying to understand the ebita ramp relative to project announcement time and
So it it it very much depends on the project. I think, when you think through, you know, power projects or renewable projects, those inherently have have longer timelines. Um, when you think through some of these more, these more, you know, water infrastructure energy infrastructure, type projects, those can be much quicker timeline. I mean, that the Devon example here, I think is more a reflection of them very much wanting to get ahead of future needs and, and a willingness to, to back stop that with this minimum volume commitment. And so, um, not necessarily reflective of call it a buildout timeline, or anything along those lines. But much more so Devin wanting to stay ahead of things which, uh, you know, like we think is a very prudent move on their part. Um, but when you look at, you know, other, you know, other commercial activity, we have kind of in the hopper at the moment, you know, you obviously have the DPX Kraken deal that, you know, was both announced at the beginning of this year, um, is already online today.
Commercial activities that we work through. But can you just give us a sense of the EBA contribution from Speedway Devon that we can think about what's going to come online in the next 12 to 24 months.
So we haven't, we haven't spoken to that publicly yet. I think once we get the opportunity to have Speedway through FID, um, we can start giving the street a little better idea in terms of the rationing of the cash flow there. I, I know previously we've discussed, you know, the potential for Speedway to be, you know, a 500,000 Barrel a day project when it's fully online, which would equate to, you know, roughly 30 million of cash flow in terms of royalties plus, uh, you know, plus obviously the related surface activity that goes on now, there'll be a sequencing and timing, you know, of those of those step-ups. Um, and once we get through, FID, once we get that fully underwritten, on The Waterbird side, we can message that a bit more clearly.
Okay, but you said 30 million plus some potential upside from that when fully online. That's right.
That's right. Okay, cool. Thank you.
Yeah, you got else.
Our final question will come from the line of Lawrence Goldstein with Santa Monica Partners LP. Please go ahead.
Good morning. I wonder if you could.
I I I wonder what.
You you could say about the fact that every single major, let's call them high-tech company.
Announces data centers.
All over the country.
But we hear of nothing.
In the premium basin.
Nothing with you. I'm not asking about your company. Specifically, I'm asking generically your neighbor, uh,
Uh uh, big land owner.
Um, TPL.
It astounds me that we don't hear a word. We hear, uh, you know, data center, data center, data center—billions here, billions there.
Why do we suppose we don't hear a word about, uh, in uh the the programming basin?
Yeah. Hey good. Good, good morning launch. Very good question. So I I think ultimately here. We're talking about a step out into a new region. Um away from major metropolitan areas which is just different different for what a lot of these data center players have done historically, um,
And and it's just taken time to get them familiar with the region, familiar with the risk, familiar with the opportunity set. I mean, ultimately, you know, we haven't gotten any push back on just the fundamentals making so much sense where this is an inevitability but you are talking about getting folks Over The Line in an area. They're not just they're not familiar with yet, or, or operating with or deploying large amounts of capital in this kind of new area. And so, um, you know, we feel good about the discussions, we're having. I imagine there are others, uh, in the permanent who feel the same way right now. Um, it's just it's just taking the time to get, you know, these very, uh, you know, large tech companies who are very risk, averse comfortable with stepping out into a new region. But, you know, ultimately the fundamentals work. Um, you know, I think they acknowledge that. And, and so like, from our point of view, it is, it is an inevitability that gets across the Finish Line. Um, and you know, once that first Domino Falls as you can appreciate, um, the
Rest of them, start falling pretty quickly thereafter. It's just convincing that first player to ultimately be the 1 that announces the step out. And the only other thing I'd add is you are seeing growing comfort of folks, heading into West Texas. There's been a number of you know, projects announced some places like ebene and LIC and so certainly there's starting to get growing Comfort moving, you know away from major metropolitan areas into you know, other um still you know, populated areas in West Texas but certainly not you know the puran but all of these trends
We think continue to work, uh, you know, to our advantage here. Um,
And again, it's just, it's going to take that first Domino to fall and and we, we think, you know, the fundamentals are just too good for that, not to happen. Yeah, no nose fundamentals. Are easy to speak to, right? Its access to large contiguous land access to cheap power, um, both on grid and behind the grid as we talked through this opportunity with the the new IPP. Um, and then, you know, access to water for cooling. So it, it checks all the boxes 100%, it's, uh, to Scott's Point. Once the first Domino Falls, I think, um, it'll be a lot more heading our way.
You know, it sounds logical.
Area and uh, I'm sure you're aware of, uh, the Articles particularly, uh, a lengthy 1 in The New York Times. Uh, I think about 2 weeks ago about how some towns turn on the water faucet or the toilet no water.
And uh and yet you say they it takes a while to uh learn about what you have in the way of us. It's everything available and everything at the lowest prices. And you know uh, Oregon or the Pacific Northwest Washington.
There that they never heard of those places either. But if so, it's obvious.
What your assets are.
And yet we've not heard a single company. So when you say it takes a while for them to learn about it,
uh, with all due respect, come on. If you haven't heard of Texas, they haven't heard of the, we we, we 100% agree. And, you know, I I think from our seats, uh, you know, coming from an oil and gas background, I think we're very, very familiar with just how great the, the Manpower and the talent is out in places like Midland. Um, you know, we've seen just some very, very smart, folks continue to pile into West Texas, to support the oil and gas industry. And so, you know, we do think that, uh, for folks who are used to working in, you know, call more of these Tech hubs. Um it's just it's it's a foreign environment when when they think through places like Midland
But again, it's I from our point of view, it's a quick education effort to show them like you've got people coming in from Top tier universities, already stepping out in the west, Texas to work in the oil and gas space. The talent's going to show up for data centers. Um, in fact, it's it's already there and so, um, yeah, look, we agree all all the pieces. All the pieces are there. The stage is set, the fundamentals. Ultimately are going to be what dictates this happening and we think it's it's an inevitability.
Yeah, I understand you think it is. I think it is. A lot of people think it is.
And uh I don't think what you've got every asset required.
For a data center. Uh, and by the way, you don't have the population, which is obviously an asset. But have you got the biggest city down there in the Basin? 15 people or something like that?
I can't believe they haven't heard of it. That they aren't familiar with it. These are the smartest people, uh, in the country.
So, I accept what you're saying, but I find it hard to believe.
Yeah, there's something else I have no idea what there's something else is
well, we
We feel great about where we're at and a lot of those talks right now. Um,
You know, and aim to bring the market some good news as it relates to that, as quickly as we can here.
Okay, thank you.
Thank you, launching Lawrence.
And that will conclude our question and answer session. I'll hand the call back over to Scott, mcnealy for any closing remarks
Yeah, thanks again for everyone participating today. Uh, as always we very much appreciate the support and the engagement. Please feel free to reach out to us with any questions, but otherwise we hope you all enjoy the rest of your summer. Thanks. Thanks.
This concludes today's call, thank you all for joining. You may now disconnect
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