From Yahoo Finance: 2025-06-09 09:18:00

Texas Pacific Land Corporation (TPL) is a unique landowner with origins in a failed railroad venture, now a powerful player in American real estate. Revenue has grown from $28 million in 2016 to $373 million in 2024, driven by hydrocarbon extraction royalties and water sales. A capital-light model allows for steady cash flow growth.

TPL recently made significant acquisitions in the Permian Basin, boosting free cash flow by $45.5 million at $70 oil. Despite a stock price decline, the company’s water segment and fundamentals present a buying opportunity for long-term investors. Hedge funds are showing increased interest in TPL, with 31 portfolios holding the stock.

The ROI Club’s Substack presented a bullish thesis on Texas Pacific Land Corporation (TPL), with shares trading at $1110.14 on 2nd June. TPL operates with minimal costs and a capital-light model, generating substantial revenues from royalties and easements. The company’s growth potential amid expanding infrastructure makes it a compelling long-term investment.

Read more: Texas Pacific Land Corporation (TPL): A Bull Case Theory