LandBridge Company LLC (LB): A Bull Case Theory

The investment thesis for LandBridge (LB) is that its true value lies in its pore space ownership for water disposal, not the market's recent focus on a potential AI datacenter. The company generates the majority of its revenue from stable, long-lasting royalties from its sister company, WaterBridge, for produced water disposal. With rising water cuts in the Delaware Basin, LandBridge is well-positioned for growth. The author argues the stock is undervalued compared to peers, and the datacenter possibility offers additional upside with limited downside risk due to the core royalty business.