Texas Pacific Land Corporation

“TPL is an exceptional, near-irreplaceable Permian Basin royalty and water tollbooth with a permanent land moat, zero debt, 77% operating margins, and a compounding water royalty flywheel — but at ~55x trailing earnings and ~39x EV/EBITDA, the current price embeds a decade of perfect execution, compressing prospective 10-year investor returns to approximately 5.5–6.5% CAGR, which is inadequate compensation for the embedded optimism; the business deserves ownership at a meaningful discount to today's price (~$260–300, ~25–28x EV/EBITDA) where the quality premium is earned rather than paid for.”