The Bull Case For LandBridge (LB) Could Change Following $37,500 Acre Delaware Basin Expansion Agreement

• LandBridge Company LLC recently entered an agreement to acquire approximately 37,500 acres across multiple Texas counties from 1918 Ranch & Royalty, with closing anticipated in late 2025, pending customary conditions.
• This acquisition expands LandBridge’s access to high-quality pore space and positions its acreage for enhanced water handling infrastructure and alternative energy development in the Delaware Basin.
• We'll explore how LandBridge's acquisition of contiguous Texas acreage could reshape its growth outlook and infrastructure diversification opportunities.

These 9 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

LandBridge Investment Narrative Recap

To own shares of LandBridge, investors typically need to believe in the continued importance of energy-related infrastructure and recurring fee-based revenues, especially as population growth and energy demand persist in the Permian Basin. The recent Texas acreage acquisition supports medium- and long-term infrastructure and diversification goals but does not materially shift LandBridge’s biggest near-term catalyst, development and expansion of recurring royalty streams, or address its largest risk, which is concentrated regional exposure to Permian Basin market fluctuations and regulatory shifts.

Among recent announcements, the 10-year surface use and pore space agreement with Devon Energy stands out for its alignment with the expanded acreage and water handling ambitions outlined in the acquisition news. This agreement reinforces LandBridge’s focus on stable, long-term fee-based contracts, which underpin EBITDA predictability and help offset timing risks posed by longer lead times before major new projects start contributing meaningfully to reported earnings.

Yet, while this bolsters long-term prospects, investors should be aware there remains concentrated exposure to Permian Basin-specific risks that could disrupt...

Read the full narrative on LandBridge (it's free!)

LandBridge's outlook calls for $321.7 million in revenue and $184.1 million in earnings by 2028. Achieving this will require annual revenue growth of 27.2% and an increase in earnings of $118.8 million from the current earnings of $65.3 million.

Uncover how LandBridge's forecasts yield a $71.25 fair value, a 34% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community place LandBridge’s fair value between US$50 and US$98.31 per share, reflecting a broad spectrum of investor outlooks. Many are weighing these views against the company’s concentrated regional risk, a factor that could shape performance if market or regulatory conditions shift, consider exploring several alternative perspectives to broaden your understanding.

Explore 6 other fair value estimates on LandBridge - why the stock might be worth 6% less than the current price!

Build Your Own LandBridge Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your LandBridge research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free LandBridge research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate LandBridge's overall financial health at a glance.

Searching For A Fresh Perspective?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• Find companies with promising cash flow potential yet trading below their fair value.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com