Jim Cramer Highlights Texas Pacific Land As The Best Performing S&P 500 Stock for February

Texas Pacific Land Corporation (NYSE:TPL) is one of the S&P 500 stocks that Jim Cramer shared his take on. Cramer highlighted the stock as February’s best performer in the S&P 500, as he commented:

… Tonight, I want to paint you a picture using the 10 best and worst performers in the S&P from last month. February’s best performer, a name that you might have heard when we went over it a couple of times last year, Texas Pacific Land Corporation. It’s up 50.5%. Now, this is a company that owns a ton of land in Texas and leases that land to energy producers while also selling them water for hydraulic fracturing or fracking. So when the price of crude rises rapidly, like it’s been doing, going from the mid-50s at the end of last year to $67 on Friday before spiking, of course, to $72 today, that’s very good news for Texas Pacific.

All this was in anticipation of some kind of conflict with Iran, and now that the Iranians have reportedly shut down the Strait of Hormuz and keep shooting rockets at the oil-rich Gulf monarchies, anything connected to oil could keep winning. Of course, if peace breaks out, crude’s going to come right back down. At the same time, Texas Pacific has also floated the idea of building data centers on top of the land it owns, although I think it would take a pretty long time for that story to play out, assuming it ever happens. It does have a certain synergy, though, when you consider that the data center engines can be powered by natural gas or diesel, at least for backup.

Photo by Yiorgos Ntrahas on Unsplash

Texas Pacific Land Corporation (NYSE:TPL) manages large areas of land and oil royalties and provides water sourcing and disposal services. The company generates revenue through land leasing, easement grants, and the sale of raw materials, in addition to its perpetual oil and gas royalty holdings. We recently talked about the stock while discussing energy stocks that gained the most. You can read it here.

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