Texas Pacific Land Corporation (TPL)

[Aitkenresearch]

Looking thru the windshield 2019 TPL?
2019 vs 2018 (real apples to apples comparison) vs the oranges of 2017?

Aprox 45,000,000 in savings of taxes in 18’ vs 17, (5.84 in earnings).
18,000,000 in royalty sales (2.34 earnings. = 8.17

So what?

Realize that for TPL to grow earnings in 2019 vs 2018 net we are going to need an increase of 30%+ in Revenues or Revenue of 120 million (66% margins) just to stay even with earnings of 2018 with a PE of 31.00
Revenues were flat q/q w/o sale.

Water sales were down q/q. (Maybe sales pushed into 1stq of 19?

Pipeline issues in 19? Production ^
Water sales increase?
Nat Gas surprise increase in price?
Oil price increase with the Fed pausing? Inflation?
PE expansion or contraction?
Value of land to bal sheet?

How to deploy new cash to increase earnings?
Is a young CEO a good thing for growth or risky?

TPL has been a very unique stock to analyze. I’m trying to give an objective analysis for those new to TPL.

Of course open to others opinions and forecasts?
Thx.