Is this company the secret winner of the oil and gas boom in the Permian Basin? Anyone who thinks that only oil companies are making money from the commodities boom should take a look at Texas Pacific Land take a look at
Earning money without doing anything yourself
The business model is very simple and extremely profitable. Texas Pacific Land does not sell oil or gas itself, but leases its land to production companies.
These companies generally pay lease and license fees that flow directly to TPL. As a result, the company benefits directly from the expansion of production without having to drill its own wells or bear the technical and financial costs. Risiko bear the technical and financial costs.
In addition, TPL automatically records higher income when production volumes increase, even if commodity prices fluctuate in the meantime.
In addition to the rights to oil and gas production, Texas Pacific Land has other sources of income. Some of the land is leased for agricultural purposes, while others are sold for residential or commercial projects. The water rights that the company holds in some regions are particularly valuable.
The figures impressively show how lucrative this business is. In the last ten years, turnover has increased from USD 79 million to USD 706 million.
This contrasts with minimal expenditure, as Texas Pacific Land only employs just over 100 people - the operating margin is around 75%.
During this time, net income has climbed from USD 42 million to USD 454 million, or from USD 1.76 to USD 19.75 per share.
Outlook and valuation
Texas Pacific Land combines characteristics that are extremely rare in this form. On the one hand, the company participates in the above-average profits of the commodities sector without being fully exposed to cyclical risks. On the other hand, TPL has an enormous asset value in the form of thousands of square kilometers of land in the heart of one of the most valuable energy landscapes in the world.
Nevertheless, the company largely flies under the radar. For example, there is virtually no coverage by banks and research houses or estimates for turnover or profit.
In the first half of the year, Texas Pacific Land generated earnings of USD 10.29 per share, compared with USD 9.95 in the previous year. This means that earnings rose despite the decline in the oil price, which is attributable to the ongoing increase in production capacity in the Permian Basin.
Estimates for this year's earnings are between USD 21 and USD 26 per share. Texas Pacific Land therefore has a forward P/E of between 36.7 and 45.4.
This is certainly not low, either in absolute or relative terms - but there are hardly any companies with an operating margin of 75% and such gigantic assets that also generate a steady cash flow
Texas Pacific Land share: chart from 29.09.2025, price: USD 954.28 - symbol: TPL | source: TWS
A bottom is currently forming. If a breakout above USD 963 now succeeds, a procyclical uptrend will ensue. Kaufsignal with possible price targets at USD 1,000 and USD 1,095.
However, if the share falls below USD 862, the bulls will have lost their chance for the time being.
