Texas Pacific Land Corporation (TPL)

[couldbebetter]

No doubt everything in the oil patch is way down from their highs.
TPL is unique in that they never issue new stock (unless for splits)
and they have always bought back and cancelled shares for as long as I
can remember. The key to why TPL went up so much is that the location
of a good chunk of its lands is located in some of the hottest areas
of the Permian. How it plays out may depend on the price of oil going
forward. TPL does not control any production decisions as that is done
by the producers using the land. Production will continue to increase,
as will the amounts that are TPL's cut. Even if the producers were to
lose money TPL would be making money. If the water operation becomes
uneconomic TPL could sell off or downsize the operation. TPL will most
likely operate mainly on its own land where it has that advantage.
Anyone else wanting to cross their surface lands would have to pay for
an easement. I enjoy reading balance sheets and various filings. TPL's
are especially interesting because there are no conference calls and
no analysts follow it. (Horizon Kinetics/Murray Stahl does.) Someday,
once oil prices become more normal, TPL should continue back up.
...by the way, I enjoy reading your feedback...You certainly saw
that TPL was being hyped up by the market...nothing nefarious, just
no one thought the price of oil would tank as fast and as far as it did.