Forget Exxon. The Smartest Oil Trade in 2026 Is the Company That Owns the Ground Beneath It
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Forget Exxon. The Smartest Oil Trade in 2026 Is the Company That Owns the Ground Beneath It
"Texas Pacific Land owns approximately 882,000 acres of land in the Permian Basin and collects royalties from every barrel of oil, gas, and produced water that passes through its land."
"In Q4 2025, Texas Pacific Land generated $96.72 million from oil and gas royalties, $60.73 million from water sales, and $33.5 million from produced water royalties, showcasing its diverse income streams."
"The business model of Texas Pacific Land produces margins that most industrial companies cannot approach, with operating margins running around 71% and EBIT margins reported as high as 83.7%."
Since the closure of the Strait of Hormuz, the global oil market has experienced volatility, with U.S. and Israeli strikes causing crude prices to surge. A ceasefire briefly lowered Brent prices, but negotiations failed. Texas Pacific Land, owning 882,000 acres in the Permian Basin, generates significant income from oil and gas royalties, water sales, produced water royalties, and easements. Its asset-light structure results in high operating margins, making it a standout investment in the current market environment.
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