Texas Pacific Land Corporation: A Hidden Gem in the Energy Sector
Texas Pacific Land Corporation (TPL) has been making waves in the energy sector with its impressive growth over the past year. The stock has surged over 125%, making it a standout performer in the market. But what’s driving this surge, and is it still a good time to invest?
Water Business: A Major Growth Driver
One of the primary reasons for TPL’s growth is its water business. With the Permian Basin being a major hub for fracking operations, access to water is critical. TPL owns over 130,000 acres of land in the Permian Basin, making it a key player in the water market. The company’s water sales revenue has surged, with a 35% increase reported in Q3 2021.
Free Cash Flow: Skyrocketing to New Heights
Another factor contributing to TPL’s growth is its free cash flow. In Q3 2021, the company reported free cash flow of $125.4 million, a significant increase from the $35.9 million reported in the same quarter the previous year. With this trend continuing, hitting the $1 billion annual threshold within a few years doesn’t sound like a far-fetched idea.
Recent Share Price Lag: An Attractive Entry Point?
Despite its impressive growth, TPL’s recent share price lag could present an attractive entry point for investors. The stock experienced a pullback in late 2021, providing a potential buying opportunity. However, it’s essential to note that investing always comes with risks, and it’s important to do thorough research and consider your personal financial situation before making any investment decisions.
Impact on Individuals: Potential Investment Opportunity
For individual investors, TPL’s growth could present an excellent investment opportunity. With its strong position in the water market and increasing free cash flow, the company is well-positioned for continued growth. However, as mentioned earlier, it’s crucial to do your research and consider the risks before investing.
Impact on the World: Sustainable Water Solutions for Energy Industry
On a larger scale, TPL’s growth could have a significant impact on the world. The energy industry’s reliance on water is only increasing, and sustainable water solutions are becoming increasingly important. TPL’s water business is helping to meet this demand, providing a critical resource for fracking operations while also promoting water conservation. As the company continues to grow, it could help lead the way in sustainable water solutions for the energy industry.
Conclusion
Texas Pacific Land Corporation’s impressive growth over the past year, driven by its water business and increasing free cash flow, has made it a standout performer in the energy sector. With its strong position in the water market and potential for continued growth, TPL could present an attractive investment opportunity for individuals. On a larger scale, the company’s sustainable water solutions could help lead the way in meeting the energy industry’s growing demand for water while promoting water conservation. As always, it’s important to do thorough research and consider the risks before making any investment decisions.
- Texas Pacific Land Corporation (TPL) has surged over 125% in the past year.
- Water sales revenue has surged, with a 35% increase reported in Q3 2021.
- Free cash flow has skyrocketed, with $125.4 million reported in Q3 2021.
- Recent share price lag could present an attractive entry point for investors.
- TPL’s water business is helping to meet the energy industry’s growing demand for water while promoting water conservation.
