Texas Pacific Land: A Spot of Luck, Perhaps?

Now, on a day when the market generally resembled a rather disgruntled aunt, Texas Pacific Land Corporation (TPL +0.59%) managed a positively cheerful little jig. Its shares, you see, closed a smidgen higher – a mere 0.6%, but a victory nonetheless, especially when one considers the S&P 500 was experiencing a distinctly gloomy afternoon, tumbling downwards by a good one percent or more. A curious state of affairs, what?

The New Black Gold, You Say?

Texas Pacific, a company that essentially rents out bits of Texas to chaps who dig for the black stuff, is now valued at a rather robust $639 per share, according to the estimable Tim Rezvan at KeyBanc. Quite a jump from the previous valuation of $350, wouldn’t you agree? Mr. Rezvan, a fellow of sound judgment, continues to recommend a “buy” – or, as the moderns put it, “overweight” – position in the company’s equity. One suspects a good deal of optimism is at play.

The source of this buoyant sentiment, it appears, is the possibility of erecting power-generating facilities and/or data centres on Texas Pacific’s ample acreage. These establishments, you see, require a considerable amount of space, and Texas Pacific, bless its heart, has it in spades. Furthermore, the company is well-positioned to supply the necessary land and water – a decidedly useful combination, wouldn’t you say?

Data centres, in particular, are all the rage these days, being constructed (or refurbished) to cater to the rather demanding appetites of artificial intelligence (AI) technology. A curious development, this AI business, but one can’t help but admire the ingenuity. Though, one does wonder if these digital contraptions will eventually decide they’d rather run the show themselves.

A 21st Century Land Baron, Indeed

Mr. Rezvan, a chap who clearly knows his onions, opines that this sort of opportunity is becoming less a question of “if” and more a question of “when” for Texas Pacific. While the company will, of course, continue to derive the bulk of its revenue from its traditional energy tenants, this new avenue presents a rather juicy prospect, and one imagines they’ll seize it with both hands. One can’t help but suspect, however, that a dash of luck is also involved. After all, markets are fickle beasts, and even the most promising ventures can stumble. Still, a bit of optimism never hurt anyone, and Texas Pacific, it seems, has it in abundance.

2026-02-24 03:33

The New Black Gold, You Say?

A 21st Century Land Baron, Indeed

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