Entering text into the input field will update the search result below

Texas Pacific Land Keeps Pumping Out More And More

Steven Miller profile picture
Steven Miller


  • The Texas Pacific Land Trust had its best year in its history, and 2017 results are briefly summarized in this article.
  • Growth is estimated to continue at least at the same pace in 2018.
  • A conservative estimated price per sub-share for 2018 is $679. (The Trust uses the term "sub-shares" for what is commonly known as "shares").

2017 Results

It is not often a company can make a statement like this one:

2017 marked the most successful year for the Trust in its 130-year history.

Texas Pacific Land Trust (NYSE:TPL) said just that in its annual report, and it is justified in doing so. Both gross income and earnings per sub-share more than doubled in 2017:

  • Gross income was $132.4 million, an increase of 120.9%.
  • Earnings per sub-share was $9.72, an increase of 108.6%.

The Trust now reports its results in two segments: Land and Resource Management, and Water Service and Operations, both of which will be described more fully later in this article. The Water Service segment is the new "water business" announced last summer.

  • Land and Resource net income went from $32.014 million in 2016 to $57.598 million in 2017.
  • Water Service net income more than tripled from $5.226 million in 2016 to $18.763 million in 2017.

Source: Author chart derived from the Texas Pacific Land Annual Report

Much of the Trust's dramatic results came from activity in an area known as the Permian Basin, which is in an area of west Texas and New Mexico.

The Permian Basin

The Permian Basin (map below) is the largest oil producing area in the U.S. It has been producing oil for more or less a century, but production of shale oil started in 2012-2013. The Apache Corporation (APA) announced a gas and oil discovery in the area in September of 2016. The Trust's stock price, which had just doubled, went from less than $200 to more than $300 in two months. (As of this writing, the stock price stands at $505.42.)

Source: National Energy Technology Laboratory

The Trust published a map of its surface coverage in an Annual Report. A snippet of that map is below, but

This article was written by

Steven Miller profile picture
The companies I invest in nearly always growing companies paying dividends, with exceptionally strong balance sheets showing little or no debt. Such companies are often small caps, but I have invested in all sizes of companies. I invest in both domestic and international stocks across a variety of sectors.

Analyst’s Disclosure: I am/we are long TPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Unless otherwise specified, data comes from the 2017 Texas Pacific Land Trust Annual Report, which includes a copy of the 10-K. Stock prices are from BigCharts and TD Ameritrade.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.