Texas Pacific Land Corporation (TPL)

[couldbebetter]

Having gone over the investor presentation several times, I am astounded
by the future potential laid out, but would dearly enjoy seeing some E&P
analyst comments on what they see as the potential. Getting Wall Street
stock coverage will help to determine TPL's share price direction. I also
wonder if there will be any takeover interest here as there may have been
at year's end last year with the share price in the toilet.

I think a PE of 30 is reasonable so long as growth continues strong and
company remains debt free. As H-K hinted at some time ago, a model like
Franco-Nevada Gold would work well if used by TPL. (This will not happen
but I would hope that TPL would consider acquiring a low PE low debt
company such as an ARCH coal to keep the combined entity free of debt.)
Such a hookup would allow for stronger earnings in the good years and
being debt free would allow for a higher PE on the combined company.

Bottom line is that I hope TPL remains debt free. If corporate taxes
move higher at some point TPL's earnings will be hurt. No mention made
by management that I am aware of of how TPL will monetize its 900,000
acres. That is over 1/2 of 1% of the total land area of Texas...that's
BIG! Does management have a plan for the land?