Here's Why One Fund Is Betting $22 Million on This Cash-Rich Energy Infrastructure Stock

St. Louis-based Cortland Associates disclosed a purchase of 260,812 shares of LandBridge Company (LB) for an estimated $14.4 million in its most recent SEC filing.

What Happened

In a quarterly regulatory filing published on Thursday, Cortland Associates reported acquiring an additional 260,812 shares of LandBridge Company LLC (LB). The estimated value of the trade, based on the average closing price for the third quarter, was approximately $14.4 million. The fund’s new position totals 412,443 shares with a reported value of $22 million.

What Else to Know

Top holdings after the filing:

• NASDAQ:WTW: $65.7 million (7.9% of AUM)
• NYSE:KD: $63.2 million (7.6% of AUM)
• NASDAQ:GOOGL: $59.3 million (7.2% of AUM)
• NYSE:V: $58.2 million (7% of AUM)
• NASDAQ:BKNG: $55.2 million (6.7% of AUM)

As of Monday, LandBridge shares were priced at $59.62, up 11% over the year and well underperforming the S&P 500's 18% gain during the same period.

Company Overview

Company Snapshot

• LandBridge owns and manages land, oil and gas royalties, and sells brackish water and surface materials to support oil and natural gas development in the Delaware Basin.
• It generates revenue through land leasing, royalty income, and the sale of water and materials to energy companies operating in Texas and New Mexico.
• The company serves oil and gas operators, energy producers, and related industry participants in the U.S. upstream energy sector.

LandBridge Company is a Houston-based energy infrastructure company focused on monetizing land and resource assets in the Delaware Basin. By combining land ownership with royalty and surface rights management, the company provides critical support services to oil and gas operators, enabling efficient resource extraction.

Foolish Take

Cortland Associates’ latest buy into LandBridge Company (NYSE: LB) suggests growing institutional confidence in the energy infrastructure firm’s high-margin, asset-backed model ahead of its next earnings report on November 12. The St. Louis-based fund added 260,812 shares in the third quarter—an estimated $14.4 million investment—bringing its total position to 412,443 shares worth about $22 million, according to its latest SEC filing.

Since its public market debut last year, LandBridge has been one of the few recent IPOs in the energy space to gain steady traction. In its second quarter, the Houston-based company posted revenue up 83% year over year and a record $34.2 million in surface royalties, while maintaining an 89% adjusted EBITDA margin and a 76% free cash flow margin. CEO Jason Long said LandBridge is “well positioned to continue delivering compelling results” as it expands partnerships in the Permian Basin and scales its pore space solutions for water management and energy infrastructure.

For long-term investors, Cortland’s move underscores the appeal of durable, cash-generating energy plays in a volatile rate environment. With steady dividends, expanding land-use agreements, and strong cash flow conversion, LandBridge offers both defensive income and optionality tied to U.S. energy growth.

Glossary

13F reportable assets: Investment assets that institutional managers must disclose quarterly to the SEC on Form 13F.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Stake: The ownership interest or share that an investor holds in a company.
Royalty income: Payments received for granting others the right to use land or resources, often in oil, gas, or minerals.
Delaware Basin: A major oil- and gas-producing region in West Texas and southeastern New Mexico.
Upstream energy sector: Industry segment focused on exploring, drilling, and producing oil and natural gas.
Brackish water: Water that is saltier than freshwater but less salty than seawater, often used in industrial processes.
Surface materials: Natural resources like sand, gravel, or stone extracted from land for construction or energy operations.
Monetizing: Turning an asset, such as land or rights, into cash or revenue.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Booking Holdings, Kyndryl, and Visa. The Motley Fool has a disclosure policy.