LandBridge Co. has closed an acquisition in the Southern Delaware Basin to add 46,000 largely contiguous surface acres in the Wolf Bone Ranch for $245 million in cash.

LandBridge purchased the acreage from Vitol-backed VTX Energy Partners, which agreed to provide a minimum annual revenue of $25 million to LandBridge for the next five years. In the fourth quarter, LandBridge, which held a successful IPO in August, added about 53,000 acres and now holds about 273,000 acres.

The Wolf Bone Ranch acquisition, announced in November, expands LandBridge’s position in Reeves and Pecos counties, Texas, and provides access to the Waha Hub. The land generates significant cash flows from existing third-party operations and is strategically located to capture potential future growth opportunities from renewable energy projects, commercial real estate and digital infrastructure development, LandBridge said in a Dec. 20 press release.

LandBridge funded the purchase price of the acquisition with $200 million of proceeds from a private placement and with $45 million of borrowings under its debt facilities.

Piper Sandler served as financial adviser to VTX Energy and Vitol. Gibson Dunn & Crutcher LLP served as counsel to VTX Energy and Vitol.

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