LB Stock Forecast & Price Target

LandBridge Co LLC's financial outlook remains positive due to a recent acquisition expected to contribute approximately $20 million in EBITDA for FY26, alongside consistent 3Q25 results that aligned with consensus estimates and indicated a 9% sequential increase in produced water royalty volumes. The stability of natural gas pricing, along with favorable Delaware Permian crude oil economics, positions the company to benefit from both volume growth and revenue generation in its oil and gas operations. Furthermore, the recent debt refinancing enhances financial flexibility, while the equity valuation reflects an upward adjustment in multiples, indicating increased market confidence in LandBridge's earnings potential.

LandBridge Co LLC faces a negative outlook primarily due to anticipated decreases in supply, resulting from normal production declines and challenges in securing new supply agreements, which could lead to reduced throughput volumes and revenues. The potential for significantly lower margins may also impact cash dividends, with the risk of reductions or terminations if financial performance deteriorates. Additionally, rising interest rates could elevate debt service costs, adversely affecting the company's distributable cash flow and increasing the risk of default on creditor obligations if operational performance does not support current debt levels.