LB Stock Recent News

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.

LandBridge's unique business model, owning land in the Permian Basin, generates high-margin revenue from surface rights leases, royalties, and resource sales, with minimal CapEx. The company reported impressive 1Q25 results, with 131% revenue growth and 129% adjusted EBITDA growth, despite oil price weakness, emphasizing its diversification into non-oil revenue streams. Strategic land acquisitions and partnerships with top energy producers ensure robust demand for LandBridge's services, supporting long-term growth and resilience against oil price volatility.

LandBridge Company LLC (NYSE:LB ) Q1 2025 Results Conference Call May 8, 2025 9:00 AM ET Company Participants Jake Robichaux - Vice President of Finance Jason Long - Chief Executive Officer & Director Scott McNeely - Chief Financial Officer Conference Call Participants Jackie Koletas - Goldman Sachs Kevin MacCurdy - Pickering Energy Partners Derrick Whitfield - Texas Capital Operator Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today.

I have been putting far more capital to work this year than I expected, taking advantage of volatility and strong risk/reward setups, not perfect timing. Fearful headlines and trade uncertainty keep many sidelined, but I believe downturns offer the best long-term buying opportunities. My five largest holdings now make up half my portfolio, reflecting deep conviction. In this article, I present my picks.

Explore the exciting world of LandBridge Company (LB -10.76%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!