Inside a $300 Million Bet on a Land-Based Energy Stock That's Fallen 10% This Past Year

Core Insights - Horizon Kinetics Asset Management increased its position in LandBridge Company LLC by 133,188 shares in Q3, despite a decrease in position value by $71.14 million due to falling share prices [2][3][6] Company Overview - LandBridge Company LLC is an energy infrastructure firm based in Houston, focusing on maximizing value from land and resource assets in the Delaware Basin [8] - The company has a market capitalization of $4.18 billion, with a revenue of $178.81 million and a net income of $24.53 million for the trailing twelve months [5] - LandBridge's business model includes leasing land for oil and natural gas development, collecting royalties, and selling ancillary materials to energy sector participants [12] Financial Performance - In Q3, LandBridge reported revenue of $50.8 million, representing a 78% year-over-year increase, with adjusted EBITDA reaching $44.9 million at an 88% margin [10] - Free cash flow for the quarter was $33.7 million, and management reaffirmed full-year adjusted EBITDA guidance of $165 million to $175 million [10] Investment Position - Following the transaction, LandBridge comprised 3.66% of Horizon Kinetics' 13F assets, with a total of 5.63 million shares valued at $300.47 million [4][6] - As of the latest report, LB shares were priced at $52.57, down 10% over the past year, underperforming the S&P 500, which increased by about 15% in the same period [4]