With a market cap of $31.1 billion, Texas Pacific Land Corporation (TPL) is a landowner in the state of Texas with approximately 873,000 acres of land in West Texas, with the majority of its ownership concentrated in the Permian Basin. Headquartered in Dallas, Texas, the company operates through two segments: Land and Resource Management; and Water Services and Operations.

Companies valued at $10 billion or more are generally classified as “large-cap stocks," and Texas Pacific fits this criterion perfectly. The company is one of the largest private landowners in the state that also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits.

Texas Pacific Land's stock prices have fallen 21.4% from its all-time high of $1,769.14 touched on Nov. 25, 2024. However, in the last three months, shares of TPL have surged 17.9%, significantly outpacing the S&P 500 Index’s ($SPX) 3.4% decrease.

Over the last six months, shares of TPL have soared 49.6%, compared to SPX’s marginal 68 bps decline during the same time frame. In addition, Texas Pacific has jumped 141.7% over the past 52 weeks, notably surpassing the S&P 500’s 8.9% return over the past year.

To confirm the bullish trend, TPL has traded consistently above its 200-day moving average over the past year and along its up-trending 50-day moving average in recent months.

On Feb. 19, the company posted its Q4 2024 results, and its shares rose 1.9% on the following day. Texas Pacific’s revenue came in at $185.7 million, and its adjusted earnings per share were $5.14. Also, during the quarter, Texas Pacific achieved record oil and gas royalty production of 26.8 thousand Boe per day along with all-time high water royalty volumes.

Additionally, in comparison, peer APA Corporation (APA) has notably underperformed TPL. In the past six months, APA stock has slumped 17.6% and decreased 39.9% over the past 52 weeks, lagging behind TPL's triple-digit surge over the past year.