LB Stock Forecast & Price Target

LandBridge Co LLC reported results for the third quarter of 2025 that met consensus estimates, primarily driven by a 9% sequential increase in produced water royalty volumes, highlighting a positive trend in operational performance. The outlook for natural gas remains promising, expected to outperform other hydrocarbons and contributing favorably to both volume and pricing metrics, although upstream activities will be influenced by Delaware Permian crude oil economics. Additionally, LandBridge's acquisition of the 1918 Ranch is projected to add approximately $20 million to EBITDA in FY26, reinforcing the company's strategic growth trajectory and enhancing its financial optionality.

LandBridge Co LLC is facing significant headwinds due to supply decreases stemming from normal production declines, an inability to secure new supply agreements, and increasing competition from other pipelines, all of which threaten its revenue generation. Additionally, potential reductions in margins or throughput volumes could result in decreased or terminated cash dividends, further signaling financial instability. Furthermore, project delays may lead to increased expenses, which could dampen investor confidence and negatively impact the company's overall financial outlook.