TPL - Landlord To The Permian Boom: Why I Just Went Big Into Texas Pacific Land Stock

2024-02-23 18:07:20 ET

Summary

• Texas Pacific Land Corporation is a unique investment opportunity that offers exposure to the growth of the Permian Basin without the risks of oil production.
• Texas Pacific has diversified revenue streams, including royalties, water services, and surface income, which provide stable cash flow and high margins.
• The company has a strong financial position with a debt-free balance sheet and focuses on maximizing shareholder value through share buybacks, special dividends, and organic investments.

Introduction

I just added a new stock to my portfolio. That's always a special moment, as I tend to keep a very close selection of stocks in a portfolio that has never exceeded 25 individual companies.

My most recent investment is a company that combines the best of two worlds: real estate and energy, two sectors that I am quite fond of.

As the company I bought is officially part of the energy sector, my energy exposure has now risen to 17%, which excludes energy investments made in my trading account. ...

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