Texas Pacific Land Corporation (TPL)

[couldbebetter]

TPL at $1000 is trading at around 20X 2022 estimated earnings. Now, if
earnings actually come out to $60 a share then $900 would be a solid buy
point. Historically, when TPL trades around a PE of 15 it is the best
point to buy. When the PE exceeds 60 it is the best time to sell.

Should TPL become involved in Bitcoin mining (using green technologies)
would be an interesting development. Reading the investor letter I was
impressed by the admission that in the past (poor oversight) led to the
theft of resources such as water and caliche. Now, hopefully, they have
safeguards in place.

With oil & gas prices now at high levels it will interesting to see
what happens. My hope is TPL will either do stock buybacks or use
their ample cash to make investments which could be accretive to both
short and long term earnings. I wonder if enough corporations have
cut back on hydrocarbon investments that it will now be difficult to
overproduce. Assuming global warming is for real, there will be a
massive demand for energy just to keep populations from roasting.
Countries such as India, China, Indonesia, and Vietnam could care
less about pollution or global warning and they will burn coal
at record levels. (Actually preferred to burning wood which is bad.)