Latest news with #TexasPacificLandCorporation
Yahoo
7 hours ago
- Business
- Yahoo
Texas Pacific Land Corporation (TPL): A Bull Case Theory
We came across a bullish thesis on Texas Pacific Land Corporation (TPL) on The ROI Club's Substack. In this article, we will summarize the bulls' thesis on TPL. Texas Pacific Land Corporation (TPL)'s share was trading at $1110.14 as of 2nd June. TPL's trailing and forward P/E were 55.53 and 37.74 respectively according to Yahoo Finance. Aerial shot of the rugged landscape of Yukon, Canada reflecting the exploration for mineral properties. Texas Pacific Land Corporation (TPL) is a rare example of a business whose origins lie in a failed railroad venture but has evolved into one of the most quietly powerful landowners in America. Born from millions of acres granted for a railway that never materialized, TPL inherited vast West Texas land at virtually zero cost. Initially overlooked as barren desert, this land's value has grown dramatically over time as the Permian Basin transformed into a global energy powerhouse. From modest grazing leases, TPL now generates substantial royalties from hydrocarbon extraction and easement fees for pipelines and infrastructure, driving revenues from $28 million in 2016 to $373 million in 2024, a 38% CAGR. The company has also capitalized on the rise of fracking by establishing a new, rapidly growing revenue stream from sourced and produced water sales, which now represent over a third of total revenues and grow at around 44% annually. Unlike capital-intensive peers, TPL operates with minimal costs, relying on royalty and easement income—earning what can be described as 'mailbox money.' This capital-light model allows cash flow to compound steadily, benefiting from what the author terms 'positive theta,' where value increases with time rather than decays. Market skeptics often misprice TPL by focusing on traditional metrics like P/E ratios without appreciating its unique growth driven by natural resource demand, infrastructure needs, and scarce groundwater rights. Positioned amid expanding energy and data center infrastructure, TPL's land ownership anchors its long-term growth potential, making it a compelling investment that thrives on time, scarcity, and simplicity. In essence, while many see a legacy oil company, TPL is emerging as a dominant water and infrastructure landowner in a vital and growing region. Previously, we have covered TPL in December 2024 wherein we by Six Bravo on Substack. The author stated that Texas Pacific Land Corporation (NYSE: TPL) recently completed significant acreage acquisitions in the Permian Basin, adding assets with strong production and growth potential, expected to boost annual free cash flow by $45.5 million at $70 oil. Despite a 33% stock price decline following its S&P 500 inclusion, largely due to market volatility and lower oil prices, the company's thriving water segment and solid fundamentals made the dip a buying opportunity for long-term investors. Since our last coverage, the stock is up 0.38% as of 2nd June. Texas Pacific Land Corporation (TPL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held TPL at the end of the first quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of TPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Washington Post
07-05-2025
- Business
- Washington Post
Texas Pacific: Q1 Earnings Snapshot
DALLAS — DALLAS — Texas Pacific Land Corporation (TPL) on Wednesday reported earnings of $120.7 million in its first quarter. On a per-share basis, the Dallas-based company said it had profit of $5.24. The landowner posted revenue of $196 million in the period. _____
Yahoo
03-05-2025
- Business
- Yahoo
Jim Cramer on Texas Pacific Land Corporation (TPL): ‘It's A Great Business, But It's Not Necessarily One That I Want To Recommend'
We recently published an article titled . In this article, we are going to take a look at where Texas Pacific Land Corporation (NYSE:TPL) stands against the other stocks. Discussing two decades of Mad Money, Jim Cramer took a moment to highlight the top-performing stocks since the show's debut. 'This week we're celebrating the show's 20th anniversary, a little over a month late, but better late than never. Given that Mad Money's been on the air for more than two decades now, I think it's worth going over the best-performing stocks during that period.' READ ALSO Jim Cramer Recently Discussed These 9 Stocks and Jim Cramer Commented on These 8 Stocks Recently He pointed out that while the broader markets have posted impressive long-term gains, the Dow rising 272%, the S&P 500 climbing 358%, and the Nasdaq 100 soaring 1,182%, the show's philosophy has not changed. He said, "I created this show because I believe you can beat the averages by doing the homework and picking great individual stocks." Two decades later, he feels even more strongly about that belief. According to him, investing in high-quality companies with long-term potential can outperform those indices. 'So, looking at every US-listed stock with a market cap of at least $1 billion and putting aside everything that came public after March 14th, 2005, the day of our first show, what are the biggest winners since Mad Money first went on the air? I've gotta tell you what, I love this list.' He also said the results were unexpected and would surprise viewers. Cramer framed these companies as real-world evidence of the show's long-held thesis, that investors who commit to studying individual businesses and hold onto strong performers over time can generate significant returns. Cramer noted that since Mad Money's launch in March 2005, 'These winners really represent the core thesis of the show that you can make a killing by picking the right stocks, doing the homework and sticking with the great ones.' 'Bottom line: When you look at the 10 best-performing stocks of the last 20-odd years, so many of these were gettable if you simply believed in your ability to pick stocks and stuck with them for the long haul.' For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on April 28 and 29. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A pipeline running through a rural landscape, a reminder of the companies oil and gas Royalty Interest. Number of Hedge Fund Holders: 28 While Cramer recognized that Texas Pacific Land Corporation (NYSE:TPL) is great, he emphasized that he would not recommend the company right now. 'Fifth place, odd one, Texas Pacific Land Corporation, up nearly 13,000% since we first went on air. It's a fun story with its origins dating back to the 1800s when a planned railroad line went bankrupt, and the only remaining asset for creditors to take was some land in western Texas. Turns out it was very valuable land sitting on vast reserves of oil and gas. These days, Texas Pacific simply leases its land holdings to oil and gas-related companies or pipeline operators. It's a great business, but it's not necessarily one that I want to recommend, with West Texas Crude sinking to $60 a barrel today [Don't buy, don't buy, don't buy].' Texas Pacific Land Corporation (NYSE:TPL) works in land and resource management. The company also provides water services, leases property, and sells materials. Overall TPL ranks 5th on our list of the best performing stocks of the last 20 years according to Jim Cramer. While we acknowledge the potential of TPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-05-2025
- Business
- Yahoo
Texas Pacific Land's (NYSE:TPL) investors will be pleased with their enviable 732% return over the last five years
We think all investors should try to buy and hold high quality multi-year winners. While the best companies are hard to find, but they can generate massive returns over long periods. For example, the Texas Pacific Land Corporation (NYSE:TPL) share price is up a whopping 674% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. It really delights us to see such great share price performance for investors. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Over half a decade, Texas Pacific Land managed to grow its earnings per share at 7.6% a year. This EPS growth is lower than the 51% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 68.17. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Texas Pacific Land's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Texas Pacific Land the TSR over the last 5 years was 732%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. It's good to see that Texas Pacific Land has rewarded shareholders with a total shareholder return of 144% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 53%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 2 warning signs we've spotted with Texas Pacific Land (including 1 which doesn't sit too well with us) . There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Texas Pacific Land Corporation (TPL): Among Large-Cap Stocks Insiders Were Buying in Q1 2025 Before Trump's Tariff Shockwave
We recently published a list of . In this article, we are going to take a look at where Texas Pacific Land Corporation (NYSE:TPL) stands against other large-cap stocks insiders were buying in Q1 2025 before Trump's tariff shockwave. US stocks surged last week following President Trump's statement that he had 'no intention' of removing Federal Reserve Chair Jerome Powell, which helped alleviate concerns about the central bank's independence. Additionally, Trump took a more conciliatory stance on tariffs, suggesting that high import duties on China might eventually be reduced, writes Yahoo Finance. Amid tariff wars and market uncertainty, insider trading often draws attention. Insider stock purchases may signal executive confidence, while sales aren't necessarily negative—they could reflect personal or diversification choices. It's best to view insider trading in context with a company's financials and market conditions. Today, we're focusing on stocks that have seen heavy insider buying activity in the first quarter of the year. Using Insider Monkey's insider trading screener, we identified companies with market caps above $10 billion, where at least two insiders purchased shares in the past three months. From this list, we ranked the top 12 stocks with the highest value of insider purchases Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A pipeline running through a rural landscape, a reminder of the companies oil and gas Royalty Interest. Market cap: $37.87 billion Texas Pacific Land Corporation, founded in 1888 and based in Dallas, Texas, manages vast land and mineral interests in the Permian Basin, and ranks sixth among the 12 large-cap stocks insiders were buying in Q1 2025, before Trump's tariff shockwave. The company earns revenue through oil and gas royalties, land leasing, easements, and the sale of materials like sand and caliche. It also provides full-service water solutions—including sourcing, treatment, and disposal—for energy operators in the region. It is also one of the 12 stocks to buy that may be splitting soon. In October 2024, Texas Pacific completed the acquisition of oil and gas mineral and royalty interests in the Permian Basin for $286 million in cash. In the fourth quarter of 2024, Texas Pacific reported a net income of $118.4 million, an increase from $106.6 million in the previous quarter. Quarterly revenue rose to $185.8 million, driven by higher earnings from easements and oil and gas royalties. For the full year, the company achieved a record $461 million in free cash flow—an 11% year-over-year increase—with total annual revenue reaching $705.8 million, up from $631.6 million in 2023. Texas Pacific recently announced that it will release first quarter 2025 financial results after the market closes on Wednesday, May 7, 2025. During the first quarter, three insiders acquired around $744,370 worth of Texas Pacific shares at an average price of $1,340.12 per share. Year-to-date, the stock is up 20.32%, while over the past 12 months it gained 125.92%, currently trading at $1,330.70 per share. Overall, TPL ranks 6th on our list of large-cap stocks insiders were buying in Q1 2025 before Trump's tariff shockwave. While we acknowledge the potential of TPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TPL but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
