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Texas Pacific Land Stock Declines Amid Water Sales Drop
Texas Pacific Land Stock Declines Amid Water Sales Drop
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BTCCSquare news:
Shares of Texas Pacific Land (TPL), the largest landowner in the Permian Basin, fell 8% as of 1 p.m. ET on Thursday. The decline comes despite a 9% increase in sales and 12% growth in free cash flow during Q2. Market concerns centered on a 34% drop in water sales, a key revenue segment, as oil prices hovered NEAR 2021 lows.
The company operates a unique model, generating income through oil and gas royalties, water sales, produced water royalties, and surface-related easements. Its nearly 900,000 acres provide a steady revenue stream across the lifecycle of drilling operations. However, reduced activity from oil-sensitive operators triggered the water sales slump, overshadowing otherwise stable performance.
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