The New Angle Is Water, Not Oil
The most interesting recent development for Texas Pacific Land is not oil. It is water. The same 870,000 acres of Permian Basin land that produces oil and gas royalties sits on substantial water rights, and TPL reported roughly $265 million in water-rights revenue in 2024 alone. That is the forward-looking part of the “29% Account” pitch, and it is grounded in something real.
The thesis is that AI data centers need enormous amounts of land, power, and water, and West Texas has all three in abundance. Data-center developers are actively scouting the Permian for sites with cheap energy and available water, which gives TPL a second growth engine beyond hydrocarbons. Marc Lichtenfeld leans on this angle heavily, and it is one of the more credible elements of the promotion.
The Oil Pullback Is the Counterweight
The counterweight is that TPL is still, for now, fundamentally an oil-price bet. The stock fell hard in 2025 as oil prices dropped, a reminder that despite the technology-story framing, the company’s cash flows rise and fall with energy prices. The 52-week range, roughly $269 to $547, reflects how much sentiment can swing around a single commodity.
That is the honest tension in the story: a genuinely valuable, scarce asset that is still priced, day to day, by the oil market. We cover the full case in our Texas Pacific Land breakdown.
What to Watch Next
The developments worth following are water-rights deals with data-center developers, any moves to monetize the land itself, and the direction of oil prices. Each of those will move the stock more than the newsletter’s “29 percent” framing will. For context on the structure and history, see our Texas Pacific explainer and the TPL meaning piece.
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