Why These 15 Energy Stocks Are up the Most So Far in 2025

9. Texas Pacific Land Corp (NYSE:TPL)

Number of Hedge Fund Holders In Q4 2024: 28

Texas Pacific Land Corp (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.

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.