Texas Pacific Land Corp. (TPL) is a unique company with a rich history that dates back to the 19th century. The company's roots can be traced back to the 1880s when the Texas and Pacific Railway was formed to develop and expand railway networks in Texas. As part of its charter, the railroad company was granted extensive land grants, which eventually led to the creation of Texas Pacific Land Trust in 1888.
TPL is primarily involved in managing and monetizing vast land holdings in the state of Texas. The company's land portfolio covers approximately 888,000 acres and is concentrated in West Texas. The land is rich in oil and gas resources and is also suitable for agriculture and other commercial activities. Over the years, TPL has strategically leased its land to various industries, including energy companies, ranchers, and agricultural operators, generating significant revenue for the company.
Unlike traditional corporations, Texas Pacific Land Corp. operates as a land trust, which means it doesn't engage in active business operations but instead holds and manages its assets for the benefit of its shareholders. TPL is one of the few publicly traded land trusts in the United States.
The company's land holdings have become increasingly valuable over the years, primarily due to the surge in oil and gas exploration and production activities in West Texas. This has resulted in significant appreciation of the company's stock value, making TPL one of the best-performing stocks on the market in recent years. Additionally, TPL's unique business structure as a land trust and its long-term land holdings have attracted attention from investors seeking exposure to the energy and real estate sectors.