The Election Crashed My Two Biggest Positions - I'm Buying With Both Hands

Introduction I have to say that I've rarely been this excited about a sell-off in my own portfolio. As many of you know, LandBridge (LB) and Texas Pacific Land (TPL) are my two largest positions - at least, TPL was a top-2 stock before the sell-off. At the time of writing, LB trades at $65.26, down roughly 22% from the $83.60 it traded at on October 30. Today, it even dipped as low as $61.58. TPL trades at $279.26, roughly 15% below where it traded before the election and 49% below its March high. The trigger was a Democratic sweep on Tuesday night, including the Texas governor's office. There's just one problem with that: both companies reported the best quarters in their history right in the middle of the chaos. In this article, I'll walk you through both earnings reports and calls, give you the political update I promised (including a note from Albert), and explain why I believe this is one of the best opportunities I've seen in these names. So, as we have a lot on our plate today, let's dive right in! What Happened On Tuesday (And Why My Stocks Got Hit) Let's start with the facts: Democrats won the House and flipped the Senate, holding 54 Senate seats as of Wednesday morning. In Texas, Democrat Gina Hinojosa beat Governor Greg Abbott with roughly 53% of the vote versus 46%. She will be the first Democratic governor of Texas since Ann Richards, who left office in 1995. Roughly two dozen local measures to restrict or block data centers appear to have passed, out of 41 such measures in 10 states (preliminary results). The Dow rallied more than 1,500 points on Wednesday. At the same time, neoclouds like CoreWeave (CRWV) and Nebius (NBIS) fell more than 7%. One major bank's economists wrote that Democratic wins at the state and local level are likely to lead to short-term data center moratoria that could affect about 45% of planned U.S. data center capacity expansion. Texas is at the center of that discussion. Hinojosa made data centers one of her core campaign issues. In an October 22 video, she said: When I am governor I will issue a moratorium - a ban - on all data center approvals. - Gina Hinojosa She wants that moratorium to last until the Legislature passes protections. She takes office on January 19. Because both LB and TPL have spent the past year talking about West Texas as the next big hub for power and compute, they got thrown into the same bucket. What I'm getting at is that the market is selling them as AI stocks. That's the part I disagree with. The data center story is a huge part of the long-term upside, but it barely shows up in today's numbers. What does show up is drilling activity, produced water, and surface use. And all three just hit records. See for yourself. LandBridge: The Best Quarter In Its History For those who are new to LandBridge: the company owns or manages more than 350,000 surface acres in the heart of the Delaware Basin. It doesn't drill. It doesn't operate pipelines. It collects fees from everyone who needs its land to do business. And 3Q26 was a monster (yes, really): Revenue came in at a record $70.9 million, up 39% year-over-year and 6% sequentially. Net income was $34.0 million, up 68% year-over-year. Adjusted EBITDA was $63.7 million, up 42% year-over-year, with a 90% margin. Free cash flow was $49.0 million, up 45% year-over-year and 22% sequentially, with a 69% margin. Think about it: a 90% EBITDA margin, 40%+ growth, and just $0.6 million in CapEx. Very few businesses on this planet can do that, and I'm dead serious about that. My exposure confirms just how serious I'm about this. Management also raised 2026 adjusted EBITDA guidance to $220-235 million, up from $210-230 million, as recent acquisitions start contributing in 4Q26. Where The Money Comes From Surface use royalties and revenues came in at $54.3 million (77% of revenue), up $2.1 million sequentially, driven by higher produced water volumes (including Wa