Is Texas Pacific Land Stock Underperforming the Nasdaq?

Yahoo

26-06-2025

Dallas, Texas-based Texas Pacific Land Corporation (TPL) is one of the largest private landowners in Texas, operating in the land and resource management and water services businesses. Valued at a market cap of $23.8 billion, the company generates revenue primarily from oil and gas royalties, as well as easements, commercial leases, material sales, and a rapidly growing water services division that supports fracking operations through water sourcing, treatment, and disposal solutions.
Companies valued at $10 billion or more are typically classified as 'large-cap stocks,' and TPL fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the oil & gas E&P industry. The company's key strength lies in its unique asset-light business model, where it earns high-margin revenue from oil and gas royalties, without engaging in any drilling or production itself. Its fixed royalty interests ensure upside exposure to oil and gas activity while minimizing capital risk.
Nat-Gas Prices Pressured by the Outlook for Cooler US Temps
Crude Prices Settle Higher as Weekly EIA Inventories Tumble
Crude Prices Gain as Weekly EIA Inventories Fall and Gasoline Demand Soars
Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!
This oil and gas company has slipped 41.4% from its 52-week high of $1,769.14, reached on Nov. 25, 2024. Shares of TPL have declined 23.9% over the past three months, considerably lagging behind the Nasdaq Composite's ($NASX) 9.3% return during the same time frame.
Moreover, on a YTD basis, shares of TPL are down 6.3%, underperforming NASX's 3.4% uptick. Nonetheless, in the longer term, TPL has rallied 38.1% over the past 52 weeks, outpacing NASX's 12.7% rise over the same time frame.
To confirm its recent bearish trend, TPL has been trading below its 50-day and 200-day moving averages since late May.
On May 7, TPL released its Q1 results, and its shares plunged 4.2% in the following trading session. Driven by strong growth in oil and gas royalties, and an increase in water sales and produced water royalties, the company's overall revenue improved 12.5% year-over-year to $196 million. Moreover, its adjusted EBITDA advanced 11.4% from the year-ago quarter to $169.4 million, while its net income per share of $5.24, grew 5.4% from the same period last year.
TPL has considerably outperformed its rival, APA Corporation (APA), which declined 37.6% over the past 52 weeks and 22.6% on a YTD basis.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com