Texas Pacific Land Corporation’s Stock Performance outshines Industry Peers
Texas Pacific Land Corporation (TPL) holds a substantial market cap of $31.1 billion and operates as a significant landowner in Texas, managing approximately 873,000 acres, mainly concentrated in the Permian Basin. With its headquarters located in Dallas, the company is structured into two segments: Land and Resource Management; and Water Services and Operations.
Given that companies with valuations of $10 billion or greater are categorized as “large-cap stocks,” Texas Pacific fits neatly into this definition. The firm is recognized as one of the largest private landowners in Texas that also generates revenue through pipeline, power line, utility easements, commercial leases, and temporary permits.
Recently, Texas Pacific Land’s stock prices have retraced 21.4% from their peak of $1,769.14, marked on November 25, 2024. However, in the last three months, TPL shares have climbed by 17.9%, significantly outperforming the S&P 500 Index, which has seen a decrease of 3.4% during the same period.
In a broader six-month view, TPL stocks have soared by 49.6%, while the S&P 500 experienced a slight decline of 68 basis points. Furthermore, over the past 52 weeks, Texas Pacific’s performance has been remarkable, with shares increasing by 141.7%, well above the S&P 500’s return of 8.9% in that timeframe.
The bullish trend appears to be supported by consistent trading above its 200-day moving average and an upwardly-trending 50-day moving average in recent months.
On February 19, the company announced its Q4 2024 results, leading to a 1.9% increase in its share price the following day. Texas Pacific reported revenues of $185.7 million and adjusted earnings per share of $5.14. During this quarter, the company achieved record oil and gas royalty production of 26.8 thousand Boe per day, along with all-time high volumes in water royalties.
In contrast, peer APA Corporation (APA) has struggled significantly in comparison to TPL. Over the past six months, APA stock has declined by 17.6%, with an even steeper drop of 39.9% over the past year, while TPL has seen a triple-digit surge during the same period.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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