We recently published a list of Why These 15 Energy Stocks Are up the Most So Far in 2025. In this article, we are going to take a look at where Texas Pacific Land Corporation (NYSE:TPL) stands against other energy stocks that are up the most so far in 2025.
The energy sector has been volatile, and macro trends have led to fears of recession. The S&P 500 energy sector gained almost 9% from January till late March, but it has been dragged down by the broader market correction.
Brent futures have hit lows and sent many energy stocks into a tailspin. Yet, there are still some energy stocks that have defied the odds and have delivered solid gains. Midstream companies have been exceptionally resilient, and renewables have also been a bright spot in the energy sector.
Even during bear markets there are pockets of the market that perform exceptionally well. For instance, tech stocks have been in a bear market, but I recently identified 15 Tech Stocks that are Up the Most in 2025 in another article.
Methodology
For this article, I screened the best-performing energy stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A pipeline running through a rural landscape, a reminder of the companies oil and gas Royalty Interest.
Texas Pacific Land Corporation (NYSE:TPL)
Number of Hedge Fund Holders In Q4 2024: 28
Texas Pacific Land Corporation (NYSE:TPL) is one of the largest private landowners in Texas, generating revenue primarily from oil and gas royalties, water services, and land-related income streams in the Permian Basin.
The most significant driver behind this surge has been a record-setting increase in oil and gas royalty production, which reached 28,300 barrels of oil equivalent per day in the third quarter of 2024, up 13% from the previous quarter. This led to a substantial boost in high-margin royalty revenue, which now makes up over half of the company’s income.
Texas Pacific Land (NYSE:TPL)’s asset-light model allows it to benefit from rising Permian Basin activity without the capital risks faced by traditional oil producers. The company’s diversified revenue streams, including water sales and infrastructure easements, have also contributed to its resilience and growth. Investors have responded positively to TPL’s ability to generate strong cash flow and earnings with minimal operational risk, especially as oil prices and drilling activity in West Texas picked up sharply in late 2024 and early 2025.
The consensus price target of $917 implies 31.34% downside.
TPL stock is up 20.46% year-to-date.
Overall, TPL ranks 9th on our list of energy stocks that are up the most so far in 2025. While we acknowledge the potential of TPL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
