In a report released today, Hamed Khorsand from BWS Financial maintained Texas Pacific Land (TPL – Research Report) to a Buy, with a price target of $2,750.00.
Hamed Khorsand has given his Buy rating to Texas Pacific Land’s stock based on a variety of factors. One of the primary reasons is the potential for increased revenue in the latter half of 2023 due to a predicted return of higher crude oil prices. Khorsand believes that this could result in higher than anticipated revenue for TPL. Furthermore, he notes that TPL doesn’t hedge its exposure to energy prices, which could lead to substantial benefits as prices continue to increase, as they have in the third quarter.
In addition, Khorsand points out a potential shift towards crude oil in the third quarter due to a decrease in natural gas producing rigs in the Permian Basin. He also mentions that crude oil production has been climbing despite a decline in total rig count from earlier levels. The analyst has revised his earnings model for the company, now assuming that TPL will generate revenue based on an average oil price of $83 per barrel in the third quarter, potentially leading to oil and gas royalty revenue of $91.3 million.
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Texas Pacific Land (TPL) Company Description:
Texas Pacific Land Trust engages in the provision of management of land. It operates through the Land and Resource Management; and Water Service and Operations segments. The Land and Resource Management segment involves in the business of managing the land and related resources in West Texas owned by the Trust. The Water Service and Operations segment consists of revenues from royalties on sales of water, direct sales of water and to a lesser extent, easements, and sundry income. The company was founded on February 1, 1888 and is headquartered in Dallas, TX.
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