Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight

9. LandBridge Company LLC (NYSE:LB)

Number of Hedge Fund Holders: 12

Talking about LandBridge Company LLC (NYSE:LB), Cramer stated, “I’ll tell you that’s a winner. I would just hold onto it.”

LandBridge Company (NYSE:LB) owns and manages land and resources to support oil and natural gas development, primarily in the Delaware Basin. The company holds oil and gas royalties and sells brackish water and surface composite materials. Recently, it has made significant moves to expand its footprint. In the third quarter, the company acquired 1,280 surface acres in Winkler County, Texas, and secured a purchase agreement for an additional 5,800 acres in Lea County, New Mexico.

It will bring its total surface ownership to approximately 227,000 acres. Further adding to its portfolio, the company also entered into a lease development agreement for a data center and related facilities on about 2,000 acres of land in Reeves County, Texas. In a notable acquisition, the company purchased around 46,000 contiguous acres in the Southern Delaware Basin, known as the Wolf Bone Ranch, from a subsidiary of VTX Energy Partners, LLC.

The deal, valued at $245 million in cash, is expected to contribute to the LandBridge Company’s (NYSE:LB) revenue growth, particularly through the development of additional water infrastructure. This includes a potential distribution hub for water supply into New Mexico, managed by WaterBridge, an affiliate of LandBridge.

With these acquisitions, which also include the recent acquisition in Winkler County, the company has added approximately 53,080 acres in the fourth quarter of 2024 alone. These strategic purchases are expected to drive revenue growth, with an estimated 2025 EBITDA multiple of 7.6x.