LandBridge Company LLC (LB): A Bull Case Theory

We came across a bullish thesis on LandBridge Company LLC on FJ Research’s Substack. In this article, we will summarize the bulls’ thesis on LB. LandBridge Company LLC's share was trading at $51.80 as of October 13th. LB’s trailing and forward P/E were 73.18 and 21.60 respectively according to Yahoo Finance.

LandBridge represents a unique investment opportunity by owning the infrastructure behind the energy and data boom rather than the commodities themselves. Unlike traditional oil and gas companies, LandBridge is a landlord of critical land assets, controlling water rights, power access, and surface infrastructure across some of the most strategically positioned energy and data corridors in the U.S.

This “powered land” model allows the company to monetize multiple layers of value—from royalties and leases to power infrastructure—providing high-margin, resilient cash flows that are largely insulated from commodity volatility. In Q2, LandBridge reported 89% adjusted EBITDA margins and 76% free cash flow margins, with 94% of revenue now derived from non-oil-and-gas royalties, highlighting the successful shift toward diversified, high-quality income streams.

The company’s portfolio sits at the intersection of rising U.S. energy demand and the growing need for AI-driven data infrastructure, giving it a decisive competitive advantage. Hyperscale data center developers and industrial operators increasingly seek land with reliable water and power access, and LandBridge is uniquely positioned to capture this demand.

Strategic initiatives, such as new solar agreements, further expand revenue potential while enhancing long-term asset value. The upcoming dual listing on the Texas Stock Exchange is expected to improve liquidity and attract institutional capital, potentially supporting a re-rating of the stock.

While risks remain, including execution challenges and commodity price exposure, the upside is significant. As global power demand surges and AI infrastructure expands, LandBridge’s high-margin, low-capex model allows incremental revenue to flow directly to the bottom line. For investors seeking asymmetric long-term returns, LandBridge offers exposure to a rare combination of irreplaceable real assets, expanding monetization opportunities, and structural tailwinds that could redefine the value of land in the modern industrial age.

Previously we covered a bullish thesis on LandBridge Company LLC by FJ Research in May 2025, which highlighted the company’s royalties, water infrastructure, and emerging AI data center opportunities. The company's stock price has depreciated approximately by 25% since our coverage, reflecting market volatility. The thesis still stands as LandBridge’s powered land model continues to generate high-margin cash flows. FJ Research shares a similar perspective but emphasizes non-oil royalties, solar agreements, and a Texas Stock Exchange listing.

LandBridge Company LLC is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held LB at the end of the second quarter which was 16 in the previous quarter. While we acknowledge the potential of LB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.