Texas Pacific Land Corporation (TPL)

[couldbebetter]

Once the corporate tax rate is reduced (hopefully to 20%) the impact to TPL's earnings will be astounding. Right now TPL pays nearly the full 35% corporate tax. Further expansion of earnings along with a reduced corporate tax rate will further propel TPL into the stratosphere!

Management is doing an excellent job here, keeping very busy. They are not overpaid, are not issued stock or options, nor do they hype the stock. There are no conference calls or slick presentations. They simply let the results speak for themselves.

My take is this is just the beginning of what will be a 5 year growth surge as supermajors like Chevron and Shell continue to plan to spend BILLIONS on the Permian, much of it in or around TPL's surface and royalty lands. During all of this TPL will benefit and continue to buy and retire shares.
This is a zero-debt, cash-rich company that just happens to own over 1,380 square miles of surface land, (that is over 1/2% of all the land area of Texas.) Water is being sold either directly or through royalties, with the company having created a full-service water division that may get into water recycling, testing, and disposal. That may be a huge growth opportunity for TPL...but they will proceed only if the demand is there.

Someday, we will all be kicking ourselves saying we sold this too soon.