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Texas Pacific Land Stock Surges 10% as Permian Royalty Giant Rebounds on AI Data Center Hopes and Water Growth

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Texas Pacific Land Stock Surges 10% as Permian Royalty Giant

NEW YORK — Texas Pacific Land Corp. shares jumped more than 10% in morning trading Friday, climbing to $417.06 as investors appeared to shake off recent volatility tied to the passing of a major shareholder and renewed optimism around the company’s diversification into AI infrastructure and data centers on its vast West Texas holdings.

Texas Pacific Land Stock Surges 10% as Permian Royalty Giant
Texas Pacific Land Stock Surges 10% as Permian Royalty Giant Rebounds on AI Data Center Hopes and Water Growth

The Dallas-based land and royalty company, listed on the NYSE as TPL, added $39.16, or 10.36%, by 11:12 a.m. EDT. The sharp rebound followed a steep sell-off earlier in the week after the announcement of the death of Murray Stahl, founder of Horizon Kinetics Asset Management, TPL’s largest shareholder. Shares had plunged as much as 15-17% on Thursday amid the news and broader energy sector weakness linked to easing Middle East tensions.

Texas Pacific Land owns roughly 900,000 acres in the Permian Basin, generating revenue primarily through oil and gas royalties, produced water royalties, and water sales to drilling operators. The business model is asset-light with exceptionally high margins — often exceeding 60% net — because the company collects royalties without bearing drilling or operating costs.

In its fourth-quarter and full-year 2025 results released in February, TPL reported record performance. Full-year revenue reached $798.2 million, net income hit $481.4 million or $6.97 per diluted share, and free cash flow stood at $498.3 million. Oil and gas royalty production averaged 34.6 thousand barrels of oil equivalent per day for the year, rising to a quarterly record of 37.5 thousand Boe/d in the fourth quarter. Water sales revenue climbed to $169.7 million annually, with Q4 alone delivering $60.7 million on 1.0 million barrels per day of volumes.

The company also raised its regular quarterly dividend by 12.5% to $0.60 per share and entered a new $500 million revolving credit facility while completing a three-for-one stock split in late 2025. Adjusted EBITDA for 2025 reached $687.4 million.

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Analysts have grown increasingly bullish on TPL’s non-traditional growth avenues. In February, KeyBanc raised its price target sharply to $639 from $350 while maintaining an Overweight rating, citing opportunities in power generation, data centers and strong water segment trends. Other targets range widely, with consensus around $487 and some lower figures near $390, reflecting debate over valuation amid high multiples.

A key catalyst has been TPL’s strategic pivot toward AI and digital infrastructure. In December 2025, the company invested $50 million in Bolt Data & Energy, a platform chaired by former Google CEO Eric Schmidt. The partnership aims to develop large-scale “Closed Loop Energy Data Hubs” on TPL land, leveraging the company’s natural gas resources for power generation and treated water for cooling. TPL holds equity stakes, warrants and rights of first refusal for land and water supply to these projects.

Management has highlighted ambitions for gigawatt-scale data center development, potentially transforming surface acreage into high-value AI infrastructure. Reports of potential involvement from major tech players, including Google, have fueled investor excitement even as traditional energy exposure remains core.

Water services continue to provide a resilient revenue stream less directly tied to oil prices. Produced water royalties and sales volumes set records in 2025, benefiting from higher drilling activity in the Permian. TPL has also explored desalination opportunities to expand its water portfolio sustainably.

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Despite the positive long-term narrative, the stock has experienced significant swings. It surged over 50% year-to-date through early 2026 on royalty strength and data center buzz but pulled back sharply in recent sessions. Thursday’s drop followed Stahl’s passing; Horizon Kinetics holds millions of shares, and the activist-leaning investor had played a key role in modernizing TPL’s governance and strategy in prior years. Horizon continued buying shares even after the news, purchasing additional units on April 8.

The company remains debt-light with substantial cash and liquidity. Its fortress balance sheet allows opportunistic investments and resilience during commodity downturns, a point emphasized by CEO Ty Glover on recent earnings calls.

TPL’s land position gives it unique leverage in the Permian, one of the world’s most productive oil basins. Operators drilling on or near its acreage pay royalties on production, while surface rights enable additional income from easements, water and now potential tech infrastructure. This diversified model has helped TPL outperform traditional energy plays during periods of price volatility.

Challenges persist. Revenue remains sensitive to drilling activity, rig counts and commodity prices, even with royalty structures providing downside protection. Some analysts caution that elevated valuations assume continued robust operator spending and successful execution on new initiatives like data centers, which remain in early stages. Recent operator capital discipline and fluctuating rig counts have raised questions about near-term growth sustainability.

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Broader market context includes recovering oil prices after a brief dip tied to Middle East developments, though energy stocks overall showed mixed performance Friday. TPL’s outsized move suggests company-specific catalysts — particularly AI-related speculation — are driving the rebound.

Upcoming events include a shareholder office and field visit in Midland on May 18, 2026, with an RSVP deadline already passed. The gathering offers investors a closer look at operations, water assets and potential development sites.

Founded originally in the 19th century and restructured as a modern corporation, Texas Pacific Land has evolved from a legacy land trust into a high-margin royalty and resource play. It maintains a lean structure with minimal overhead, allowing most incremental revenue to flow to the bottom line.

Insider and institutional interest remains notable. Major holders like Horizon Kinetics have demonstrated ongoing confidence through purchases, while short interest hovers around 6% of float. The stock’s beta near 1.0 indicates it moves with the broader market but amplifies energy and growth themes.

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Technical analysts noted Friday’s surge broke short-term resistance after the recent pullback, with elevated volume signaling renewed buying interest. Longer-term charts show the shares well above 2025 lows despite volatility.

As TPL prepares Q1 2026 results in coming weeks, focus will center on royalty production trends, water volumes, progress with Bolt Data & Energy and any updates on surface development. Guidance or commentary on 2026 outlook could further influence sentiment.

The company’s story blends old-economy energy royalties with forward-looking bets on AI power and data infrastructure needs. In an era of surging electricity demand from data centers and hyperscalers, TPL’s land, water and energy resources position it uniquely at the intersection of traditional resources and next-generation technology.

While risks around execution, commodity cycles and high valuations remain, Friday’s rally underscores investor willingness to price in diversification potential. With Permian activity resilient and new revenue streams emerging, Texas Pacific Land continues to attract attention as both a defensive royalty play and a speculative growth name in the evolving energy-AI landscape.

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Hezbollah pays steep price in battle to reverse its fortunes

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Hezbollah pays steep price in battle to reverse its fortunes
BEIRUT: Hezbollah has paid a heavy price for going to war with Israel on March 2: Israel has occupied a chunk of southern Lebanon, displaced hundreds of thousands of its Shi’ite Muslim constituents and killed as many as several thousand of its fighters, according to previously unreported casualty estimates from within the group.

The move has brought severe political consequences, too. In Beirut, opposition has hardened to its status as an armed group, which domestic rivals see as exposing Lebanon to repeated wars with Israel.

In April, Lebanon’s government held face-to-face talks with Israel for the first time in decades, a decision Hezbollah firmly opposed.

However, more than a dozen Hezbollah officials told Reuters they see a chance to reverse deteriorating fortunes by aligning with Tehran in its war with Israel and the United States. The group, founded by Iran’s Islamic Revolutionary Guard Corps in 1982, opened fire two days into the conflict, which began with U.S. and Israeli strikes on Iran on February 28.

The group’s calculations are based on the assessment that its participation would force Lebanon onto the agenda of U.S.-Iranian negotiations, and that Iranian pressure can secure a more robust ceasefire than one that took effect in November 2024 following a conflict sparked by the war in ‌Gaza, the officials said.

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Hezbollah was mauled in ⁠the last war, ⁠which killed its leader, Hassan Nasrallah, along with some 5,000 fighters, and weakened its long-dominant hold over the Lebanese state.
Rearmed with Iranian help, it has used new tactics and drones, surprising many with its capabilities after a fragile 15-month truce during which Hezbollah held fire, even as Israel continued to kill its members. Hezbollah lawmaker Ibrahim al-Moussawi denied the group was acting on Iran’s behalf when it resumed hostilities, as alleged by opponents. He told Reuters Hezbollah saw a window to “break this vicious cycle … where the Israelis can target, assassinate, bombard, kill, without any revenge.”

He acknowledged losses and damage in southern Lebanon but said “you don’t go into making calculations of how many are going to be killed” when “pride and sovereignty and independence” are at stake.

While a U.S.-mediated ceasefire that took effect on April 16 has led to a significant reduction in hostilities, Israel and Hezbollah have continued to trade blows in the south, where Israel maintains troops in a self-declared “buffer zone”.

Yezid Sayigh, a senior fellow at the Carnegie Middle East Center in Beirut, said Hezbollah had “shown more resilience than many thought possible, but that was not a strategic gain in itself”.

“The only thing that will contain Israel is a comprehensive U.S.-Iran deal,” he said. “Without a deal, there’s going to be a lot of pain for everyone. At best, a hurting stalemate.”

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GRAVES FRESHLY DUG, AND QUICKLY FILLED
More than 2,600 people have been killed since March 2, around a fifth of them women, children and medics, Lebanon’s health ⁠ministry has ‌reported. Its toll does not distinguish between civilians and combatants.

Three sources, two of them Hezbollah officials, said the ministry’s figures do not include many of the group’s casualties. They said several thousand Hezbollah fighters have been killed, though the group does not have the full picture yet.

Hezbollah’s media office said the figure of several thousand was inaccurate, but the group does not have the full toll. It referred Reuters to the health ministry’s figures.

One source, a Hezbollah commander, said scores of fighters had gone ⁠to the frontline towns of Bint Jbeil and Khiyam intending to fight to the death. Their bodies have yet to be recovered.

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In the Hezbollah-controlled southern suburbs of Beirut, more than two dozen freshly dug graves were quickly filled with fighters’ bodies in the days after the ceasefire took hold. Simple marble tombstones identify some as commanders, others as fighters.

In one southern village alone, Yater, the council recorded the deaths of 34 Hezbollah fighters.

Lebanon’s Shi’ite Muslim community has borne the brunt of Israel’s attacks, forced to flee into Christian, Druze and other areas, where many blame Hezbollah for starting the war.

Israel has been entrenching its hold over a security zone stretching as far as 10 km (6 miles) into Lebanon and demolishing villages, saying it aims to shield northern Israel from attacks by Hezbollah militants embedded in civilian areas.

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An Israeli government official said Hezbollah had abrogated the November 2024 ceasefire by firing on Israeli citizens on March 2. The threat to northern Israel would be eradicated, the official said, adding thousands of Hezbollah militants had been killed, and Israel was steadily destroying the group’s infrastructure.

The Israeli military says Hezbollah has fired hundreds of rockets and drones at Israel since March 2. Israel has announced 17 soldiers killed in southern Lebanon, along with two civilians in northern Israel.

Citing ongoing Israeli strikes, Hezbollah has called the April ceasefire meaningless and continued to attack.

IRAN ‘WILL NOT SELL’ THEIR FRIENDS
A diplomat who has contact with Hezbollah described its decision to enter the war as a big gamble and a survival strategy, saying it felt ‌it needed to be part of the problem so it could be part of an eventual regional solution.

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It has yet to be seen if the gamble will pay off.

Tehran has demanded that Israel’s campaign against Hezbollah be included in any deal on the wider war. But Trump said last month that any deal Washington reaches with Tehran “is in no way subject to Lebanon”.

A spokesperson for Pakistan’s Foreign Ministry, Tahir Andrabi, referred Reuters to an April 16 statement in which he said peace in Lebanon was essential to the talks it is mediating between the U.S. and Iran.

A Western official ⁠said they saw a possibility the U.S. and Iran might eventually reach a settlement that does not address the war in Lebanon.

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Asked about this, the U.S. State Department, Iran’s mission to the United Nations in Geneva and Lebanon’s government did not immediately comment.

Hezbollah’s Moussawi said a ceasefire in Lebanon continues to be a top priority for Iran, adding Tehran shares Lebanon’s objectives, including that Israel halt attacks and withdraw from Lebanon. Hezbollah has “full trust in Iran – that the Iranians will not sell their own friends”, he said.

The State Department referred Reuters to an April 27 interview Secretary of State Marco Rubio did with Fox News, in which he said Israel had a right to defend itself against Hezbollah’s attacks, and that he didn’t think Israel wanted to maintain its buffer zone in Lebanon indefinitely.

The United States has urged Israel “to make sure their responses are proportional and targeted,” he said.

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When the April 16 ceasefire was announced, Israeli Prime Minister Benjamin Netanyahu said Hezbollah’s disarmament would be a fundamental demand in peace talks with Lebanon.

Hezbollah has ruled out disarmament, saying the matter of its weapons is a topic for a national dialogue. Any move by Lebanon to disarm the group by force would risk igniting conflict in a country shattered by civil war from 1975 to 1990.

Lebanon’s President Joseph Aoun and Prime Minister Nawaf Salam have sought Hezbollah’s peaceful disarmament since last year. On March 2, the government banned the group’s military activities.

Hezbollah has demanded the government cancel that decision and end its direct talks with Israel.

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Lebanese officials have told Reuters they believe direct talks with Israel under the auspices of the U.S. are the best way to secure a lasting ceasefire and the withdrawal of Israeli troops, as only Washington has enough leverage with Israel to achieve those aims.

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Palantir Stock Faces A Post-Earnings Decline (NASDAQ:PLTR)

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Michael Kramer is the founder of Mott Capital, and is a long-only investor who focuses on macro themes and studies trends and options activities to identify and assess entry and exit points for investments in his long-term focused thematic growth strategy. He is a former buy-side trader, analyst, and portfolio manager with 30 years of experience tracking market technicals, fundamentals, and options.Michael Kramer leads the investing group Reading the Markets, where he helps a devoted following of members to better understand what is driving trading and where the market is likely heading, both the short and long-term. Features of the investing group include: daily written commentary and videos analyzing the driving factors behind price action; general macro trend education to help members make well-informed decisions based on market conditions, interest rates, currency movements and how they all interact; chat for questions and community dialogue; and regular Zoom videos sessions to discuss current ideas and answer questions. The level of access RTM subscribers and the expertise of the source are unprecedented given that the subscription price is a fraction of similar technical coaching and mentoring services. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.

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