LB Stock Recent News

My two largest investments just sold off hard, but I'm doubling down, as three major trends are lining up to make this one of my highest-conviction calls ever. Exploding data demand, soaring water value, and dirt-cheap energy are converging in one place. I believe the setup here is simply unmatched. These two companies sit on prime land, earn sky-high margins, and benefit no matter who's doing the drilling, or building. I'm betting big—and sleeping well.

The world is focused on flashy megatrends, but my top thesis, water in energy production, is far more overlooked and, in my view, far more urgent. Produced water is overwhelming the Permian. Handling costs are soaring, pore space is shrinking, and new infrastructure is critical for the future. I'm heavily invested in companies with water, mineral, and surface rights. These landowners are perfectly positioned to benefit for years to come.

HOUSTON--(BUSINESS WIRE)--LandBridge Company LLC (NYSE: LB) ("LandBridge") today announced that it will release its financial results for the second quarter of 2025 after market close on Wednesday, August 6, 2025. LandBridge will host a webcast and conference call to discuss its results on Thursday, August 7, 2025, at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time. Webcast Instructions: To listen to the live webcast, please visit the Events and Presentations section of the LandBridge Investor.

Asking 'why' repeatedly is crucial for investors to understand the root causes of macroeconomic shifts and avoid being blind sided by market disruptions. The current U.S. policy shift favors growth over inflation control, increasing risks of higher inflation and short-term debt refinancing challenges. Given these risks, I recommend increasing exposure to real assets, REITs, and cyclical value stocks for inflation protection and potential outperformance.

Inflation isn't just back, it's becoming policy. From skewed CPI data to deficit-driven dollar moves, we're entering a new and lasting macro era. The U.S. may now prefer higher inflation to fix its balance sheet and boost growth. That changes everything, including how we invest, where we invest, and why. I'm not overhauling my strategy. But I'm sharpening my focus on pricing power, hard assets, and income that's built for this new reality.

LandBridge offers a high-margin, low-capex royalty model, benefiting from higher water-to-oil ratios as wells age. Unlike peers, LandBridge is less exposed to oil prices, with 92% of revenue from non-O&G sources. Once the Speedway Pipeline is fully operational, water volumes will grow by over 30%.

The first year of trading for LandBridge generated a +326% return. The company achieved an impressive EBITDA margin of 88%, while its revenue grew by 131% during Q1 2025. The company operates a basic business model, maintaining minimal operational expenses.

I've updated my investment framework to eliminate overlap, clarify pillars, and better guide my dividend growth investing strategy. The new model focuses on three pillars: company-specific factors, economic fundamentals, and external risks and opportunities. I prioritize leading economic indicators over lagging data like GDP, aiming to predict business cycles and buy cyclical stocks at opportune times.

AI is a transformative megatrend, likely to disrupt white-collar jobs and reshape industries more profoundly than most anticipate. Generative AI threatens up to 30% of workforce tasks, with STEM, business, and administrative roles most at risk; blue-collar jobs are safer for now. Job security is declining, making it crucial for individuals to invest and build financial safety nets amid rising uncertainty.

LandBridge's high-margin, low-cost business model and strategic land acquisitions drive resilient revenue and cash flow, even amid oil price volatility. Diversified revenue streams—surface royalties, water, and natural gas—offset oil weakness and position LB for growth as energy and data center demand rises. Valuation is justified by valuable Permian Basin land holdings and normalized EBITDA, with potential upside from data center-related agreements and brackish water demand.