Will Texas Pacific Land Corporation (TPL) Continue to Grow at a Rapid Pace?

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -14.1% compared to a return of -17.0% for the Russell 2500 Index. Since inception, the fund returned 10.3% compared to 4.9% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the second quarter 2022 investor letter, Wedgewood Partners discussed stocks like Texas Pacific Land Corporation (NYSE:TPL). Headquartered in Dallas, Texas, Texas Pacific Land Corporation (NYSE:TPL) is in the business of land and resource management and water services and business operations. On September 28, 2022, Texas Pacific Land Corporation (NYSE:TPL) stock closed at $1,766.52 per share. One-month return of Texas Pacific Land Corporation (NYSE:TPL) was -4.02% and its shares gained 42.39% of their value over the last 52 weeks. Texas Pacific Land Corporation (NYSE:TPL) has a market capitalization of $13.642 billion.

Here is what Wedgewood Partners specifically said about Texas Pacific Land Corporation (NYSE:TPL) in its Q2 2022 investor letter:

“Texas Pacific Land Corporation (NYSE:TPL) was a top contributor to performance during the second quarter. Revenue skyrocketed +75% as oil and gas royalties more than doubled. Most of this was driven by higher realized prices on the production of oil and gas on the Company’s acreage, but production of oil and gas also grew +23%. The Company’s royalty interests span over 880,000 acres in West Texas. Most of this land is in the highly productive Delaware Basin of the Permian Basin. We expect that development activity will continue to grow at a rapid pace in this region, primarily driven by both domestic and multinational producers looking to maximize returns on increasingly scarce oil and gas capital expenditures.”

Texas Pacific Land Corporation (NYSE:TPL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Texas Pacific Land Corporation (NYSE:TPL) at the end of the second quarter which was 19 in the previous quarter.

We discussed Texas Pacific Land Corporation (NYSE:TPL) in another article and shared RiverPark Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.