10 Best Performing Energy Stocks in 2024

04. Texas Pacific Land Corporation (NYSE:TPL)

Year to date Share Price Gain: 83.06%

Number of Hedge Fund Holders: 21

Texas Pacific Land Corporation (NYSE:TPL) has diversified operations primarily in land and resource management, along with water services in the Permian Basin, positioning it as a key player in the energy sector. With an impressive year-to-date share price increase of 83.06% in 2024, the company reflects strong investor confidence in its business model and growth prospects. Its strategic advantages, particularly in oil and gas royalty interests, make Texas Pacific Land Corporation (NYSE:TPL) a fundamental stock to watch closely.

Texas Pacific Land Corporation (NYSE:TPL) financial performance in the second quarter of 2024 further underscores its bullish potential. The company reported record numbers across its water services and operations segment, with substantial increases in water sales and produced water royalties. Water sales volumes averaged 800,000 barrels per day, driven by demand from major customers like Exxon, Conoco, and BP. These numbers are significant, as they demonstrate Texas Pacific Land Corporation (NYSE:TPL) ability to leverage its infrastructure for both brackish and recycled water, capturing a growing market in the Permian Basin.

The produced water segment also delivered robust results, with a 43% increase in royalties from the previous year, collecting royalties on over 300 million barrels of produced water. This high-margin business, coupled with minimal operating costs, provides Texas Pacific Land Corporation (NYSE:TPL) with a strong cash flow stream, even amid fluctuating commodity prices. Additionally, the company’s royalty production saw steady growth, with oil and gas royalties comprising 52% of total revenue for Q2 2024.

Texas Pacific Land Corporation (NYSE:TPL) royalty model allows it to benefit from rising commodity prices without incurring the capital or operating costs typical of upstream operators. This unique advantage, combined with its strategic position in the Permian Basin, where it owns a vast amount of royalty acreage, gives the company a long runway for future growth. With continued demand for oil and gas and its water services segment performing at record levels, TPL is poised for further success in the energy market.