(TPL) Texas Pacific Land Trust - Ratings and Ratios

Texas Pacific Land Trust (TPL) is a unique entity that owns and manages a vast landholding in the Permian Basin, generating revenue through a diverse set of activities including land and resource management, and water services and operations. The companys land and resource management segment is focused on maximizing the value of its surface acres and oil and gas royalty interests, with a range of activities including easements for oil and gas transportation, power line and utility infrastructure, and subsurface wellbore easements.

The companys water services and operations segment is a critical component of its business, providing full-service water offerings to operators in the Permian Basin, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions. This segment also generates revenue through produced water royalties, further diversifying the companys income streams.

TPLs ownership of a significant nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land, as well as additional royalty acres, positions it for long-term benefits from the continued development of the Permian Basin. With a history dating back to 1888, the company has established itself as a major player in the region.

From a technical analysis perspective, TPLs current price is 1126.37, with support levels at 1080.9, 1000.0, and 822.7. The stock is currently below its 20-day and 50-day moving averages, indicating a potential downtrend. However, the 200-day moving average at 1209.52 suggests a longer-term uptrend. The Average True Range (ATR) of 54.17 (4.81%) indicates moderate volatility.

Using a combination of technical and fundamental data, a forecast for TPL can be developed. With a market capitalization of $25.6 billion and a forward P/E ratio of 37.74, the company is priced for significant growth expectations. The return on equity (RoE) of 40.04% is a strong indicator of the companys ability to generate profits. Given the current technical trends and fundamental data, a potential price target for TPL could be in the range of $1300-$1400, representing a 15-24% increase from current levels. However, this forecast is contingent on continued development of the Permian Basin and the companys ability to maintain its market position.