Update shared on27 Aug 2025
Fair value Decreased 4.59%LandBridge’s consensus price target has been revised downward primarily due to a substantial decline in its forward P/E ratio and a contraction in net profit margin, resulting in a new fair value estimate of $72.38.
What's in the News
- LandBridge signed a 10-year agreement with Devon Energy to provide 300,000 bpd of pore space capacity for operations in the New Mexico Delaware Basin.
- The agreement includes a minimum volume commitment from Devon to deliver at least 175,000 bpd of produced water.
- Pore space reservations will begin in the second quarter of 2027.
- Future WaterBridge infrastructure buildout is anticipated to support the agreement, pending successful commercialization and market viability of the Speedway Project.
Valuation Changes
Summary of Valuation Changes for LandBridge
- The Consensus Analyst Price Target has fallen slightly from $75.86 to $72.38.
- The Future P/E for LandBridge has significantly fallen from 44.76x to 15.59x.
- The Net Profit Margin for LandBridge has fallen from 60.82% to 55.85%.
Disclaimer
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