Texas Pacific Land Corporation (NYSE:TPL) is one of the Oversold Fundamentally Strong Stocks to Buy Now. On August 6, the company released its financial and operating results for Q2 2025, highlighting its financial resilience amid commodity price fluctuations, with quarterly revenue records witnessed in SLEM and produced water royalties. Texas Pacific Land Corporation (NYSE:TPL)’s significant footprint throughout royalties, surface, and water positions it to extract sources of value from the Permian’s exceptional resource.
A pipeline running through a rural landscape, a reminder of the companies oil and gas Royalty Interest.
Texas Pacific Land Corporation (NYSE:TPL)’s total revenues for the 6 months ended June 30, 2025 came in at $383.5 million versus $346.5 million for the 6 months to June 30, 2024. The rise in total revenues was mainly because of a $24.3 million rise in oil and gas royalty revenue, as well as $17.2 million increase in easements and other surface-related income. As of June 30, 2025, Texas Pacific Land Corporation (NYSE:TPL)’s royalty acreage had an estimated 6.0 net well permits, 11.1 net drilled but uncompleted wells, and 5.1 net completed but not producing wells.
In particular, record produced water royalty revenue highlights Texas Pacific Land Corporation (NYSE:TPL)’s unique position to provide essential solutions and capture high-quality cash flows. Wedgewood Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Texas Pacific Land Corporation (NYSE:TPL) was a top contributor to performance during both the quarter and the year. Texas Pacific Land continues to be an extraordinarily unique and profitable business. The Company owns over 800,000 surface acres of land in the Texas Permian Basin. The vast majority of this land was acquired in the year 1888 and more recently (i.e. the last 15 years) this land became highly productive oil and gas royalty acreage thanks to modern drilling and completion techniques and technologies. Despite all of these deserved accolades, we liquidated our positions after the stock rallied quite sharply upon being consecutively added to two major stock indexes over the past seven months. The earnings power of the Company has not substantially changed over the past seven months (for better or worse). However, passive indexes and the traders and managers that closely follow and benchmark against those indexes effectively tripled their appraisal of the Company’s corporate value, while that value never changed. We will continue to monitor Texas Paci7ic Land from the sidelines and would hope to invest in them again, perhaps after the market’s “animal spirits” subside.”
While we acknowledge the potential of TPL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TPL and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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