Texas Pacific Land Corporation (TPL)

[Nestegg McMuffin]

You have to take the long, deep view of this stock. DUCs (drilled but uncompleted) wells are up to 300.

Once complete next year or so, they will start producing revenue. Plus the new pipelines will be finished meaning no build-up of oil that has to be discounted and distributed by truck. The improved drilling tech (fracking basically) means the cost per barrel to the likes of Chevron is now a third of what it was 4 years ago -- about $20 per barrel. Even if global crude prices plummet to their previous low $35, that is still a profit for TPL, which takes its royalty on the sale price.

The company is shrewdly investing in water recycling, which will be a huge source of revenue over the next 5-10 years. The recent stock drop was mostly due to momentum investors dumping IMO along with overall stock market wobble. Longs and institutional investors like Horizon Kinetics know the full potential here. The company has no debt. They own the land outright. The oil companies are investing BILLIONS in drilling this land because it's now worth it, They can access the deeper wells, they couldn't when they drifted away in the 1970s.

The only thing that needs pumping here is the wells.