Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Loss Contingencies [Line Items]

Commitments and Contingencies

9.Commitments and Contingencies

Subordination payments

In connection with the October 2021 business acquisition of Hanging H Ranch, Inc., the Company agreed to pay one of the sellers $5.0 million as additional consideration over the next ten years on each anniversary of closing, beginning on October 14, 2022, and in exchange for the additional consideration, such seller agreed to subordinate its rights under a grazing lease to the rights of the lender under the Ag Loan. In conjunction with the retirement of the Ag Loan, the seller’s rights under the grazing lease are no longer subordinated. As of both June 30, 2024 and December 31, 2023, $0.5 million was reflected within other current liabilities on the condensed consolidated balance sheets. As of June 30, 2024 and December 31, 2023, $2.6 million was reflected within other long-term liabilities on the condensed consolidated balance sheets for both periods. These amounts represent the present value of the total $5.0 million in additional consideration.

Litigation

The Company records liabilities related to litigation and other legal proceedings when they are either known or considered probable and can be reasonably estimated. Legal proceedings are inherently unpredictable and subject to significant uncertainties, and significant judgment is required to determine both probability and the estimated amount. As a result of these uncertainties, any liabilities recorded are based on the best information available at the time. As any new information becomes available, the Company reassesses the potential liability related to pending litigation. As of June 30, 2024 and December 31, 2023, the Company recorded an immaterial amount in liabilities related to any legal matters.

LandBridge Company LLC

Loss Contingencies [Line Items]

Commitments and Contingencies

4.Commitments and Contingencies

In the ordinary course of business, the Company may be subject to various legal, regulatory and/or other administrative proceedings. There are currently no such proceedings to which the Company is a party.