Why Is No One Talking About This Monster 3-for-1 Stock Split That Goes Into Effect Before the End of 2025?

Core Viewpoint - Texas Pacific Land is positioned as a unique investment opportunity in the oil and gas sector, characterized by its high margins and minimal operating expenses, making it a strong candidate for risk-averse investors despite its high valuation [2][16]. Group 1: Company Overview - Texas Pacific Land does not engage in oil and gas production, transportation, or refining but owns significant land assets, primarily in the Permian Basin, which is the largest onshore oil and gas-producing region in North America [7][8]. - The company was established in 1888 and currently owns 882,000 surface acres and 207,000 net royalty acres, benefiting from the growth in oil and gas production in the region [8][10]. Group 2: Financial Performance - For the nine months ended September 30, 2025, Texas Pacific reported total revenue of $586.61 million, an increase from $520.04 million in the same period in 2024 [12]. - The company generated $229.93 million from oil royalties and $33.58 million from natural gas royalties, showing a significant increase in natural gas royalties from $13.63 million in 2024 [11]. - Despite lower average oil prices of $66.59 in 2025 compared to $77.68 in 2024, the company managed to increase its oil royalties, demonstrating the strength of its business model [13]. Group 3: Business Model and Growth Potential - Texas Pacific's revenue primarily comes from oil and gas royalties, with additional income from water services and easements, allowing it to maintain high profit margins [10][15]. - The company has a net profit margin of 61% and an operating margin of 75.5%, indicating its efficiency in converting revenue into profit [12][15]. - Texas Pacific is expected to continue growing its earnings and cash flow as production in the Permian Basin increases, allowing for further acquisitions of royalty-producing acreage or returning capital to shareholders [17]. Group 4: Stock Split and Market Position - Texas Pacific executed a 3-for-1 stock split in March 2024, which will make shares more accessible to investors, reducing the share price from around $840 to approximately $280 [3][5]. - The stock split is seen as a sign of management's confidence in future earnings growth, although the stock is down 24.1% year to date [3][4].