LandBridge Company LLC (LB): A Bull Case Theory

We came across a bullish thesis on LandBridge Company LLC on Value Degen’s Substack by Unemployed Value Degen. In this article, we will summarize the bulls’ thesis on LB. LandBridge Company LLC’s share was trading at $57.93 as of August 4^th. LB’s trailing and forward P/E were 30.95 and 21.60, respectively according to Yahoo Finance.

Landbridge (LB), created by private equity firm Five Point Energy as a complement to Waterbridge, controls surface rights to 277,000 acres in the Permian Basin. Initially overlooked, the company has begun attracting attention due to its potential to capitalize on critical infrastructure trends. While it lacks significant mineral rights, Landbridge monetizes its land through surface use fees for drilling sites, roads, pipeline, and electric transmission easements, along with sand, water, and some oil and gas royalties. Last quarter, surface royalties generated $26.2 million, up 181% year-over-year, driving trailing twelve-month revenue to $134 million. Despite its $4.23 billion market cap and a lofty 31x price-to-sales ratio, the company operates as a royalty model with 88–90% EBITDA margins and revenue growth of 131% over the last year.

The strategic long-term thesis centers on future demand from data centers driven by AI and energy needs. Limited grid capacity will push hyperscale developers to build in regions with abundant natural gas—making Landbridge’s acreage attractive for hosting data centers that require on-site power. In the near term, CEO-led efforts to secure new tenants and deploy cash flow toward additional land acquisitions underpin growth. While management has not given explicit targets, sustained expansion could compress valuation multiples significantly. At even 40% annual growth, Landbridge’s price-to-EBITDA could normalize near 10x by 2029.

With earnings due August 7 and hints of positive updates, the stock—trading at $55 after oscillating between $50 and $85—presents optionality for dividend growth investors, long-term compounders, or tactical traders anticipating a near-term catalyst.

Previously, we covered a bullish thesis on LandBridge Company LLC (LB) by FJ Research in May 2025, which highlighted its positioning at the intersection of energy security and AI infrastructure with strong insider alignment. The company’s stock price has depreciated approximately 16% since our coverage due to valuation compression despite growth. The thesis still stands as long-term tailwinds persist. Unemployed Value Degen shares a similar view but emphasizes short-term catalysts and multiple compression potential.

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Disclosure: None.