Investing 501
Long only, value, special situations, deep value

Texas Pacific Land Operational Update

The stock of Texas Pacific Land (NYSE:TPL) has risen significantly ($80 to $200 a share) since our original analysis was published. We thought it would be a good time to revisit the idea.

While the stock was not really undervalued on an adjusted book value basis, we liked the business model of using royalty and easement income to shrink the share base, thereby increasing a shareholder's ownership in the business and their exposure to the revitalized Permian Basin. We viewed our analysis as extremely conservative (mostly steady state) and found the long-term return potential acceptable. A stagnant or declining share price, combing with the stock buyback would increase our ownership in the royalty stream and acreage. An increase

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