Core Insights - Texas Pacific Land Corporation (TPL) is a significant landowner in Texas, focusing on land management, oil and gas royalties, and water services [1][6] - The company has organized a shareholder visit to its office and water field in Midland to enhance understanding of its operations and water management strategies [2][6] - HORIZON KINETICS ASSET MANAGEMENT LLC, a major shareholder with a 10 percent stake, recently purchased additional shares, indicating strong investor confidence in TPL [3][6] - TPL's stock reached a high of $518.79, reflecting positive market sentiment and optimism regarding the company's performance [4] - The shareholder visit aims to build transparency and trust, strengthening relationships with investors and providing insights into TPL's operations [5][6]

Key Takeaways AWR reported Q4 2025 EPS of 74 cents, up 32.1% year over year, with revenues rising 14.8%. American States Water posted 2025 EPS of $3.37, up 10.9%, on 10.52% higher annual revenues.AWR's Contracted Services EPS rose 45.5% on added construction work and resolved price adjustments. American States Water Company (AWR) reported fourth-quarter 2025 operating earnings per share (EPS) of 74 cents, up 32.1% from the year-ago quarter’s level of 56 cents.AWR reported 2025 adjusted earnings of $3.37 per ...

For the quarter ended December 2025, Select Water Solutions, Inc. (WTTR) reported revenue of $346.5 million, down 0.7% over the same period last year. EPS came in at $0, compared to -$0.01 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $320.81 million, representing a surprise of +8.01%. The company delivered an EPS surprise of -100%, with the consensus EPS estimate being $0.01.While investors closely watch year-over-year changes in headline numbers -- revenue and ea ...

Financial Data and Key Metrics Changes - The company reported full-year non-GAAP earnings per share of $4.76, a 4.2% increase from $4.57 in 2024 [21] - GAAP earnings for 2025 were $4.56 per share, compared to $2.27 per share in 2024 [19] - The company paid dividends of $3.01 per share, representing a 5.2% increase [6] Business Line Data and Key Metrics Changes - Electric transmission earned $2.09 per share in 2025, up from $2.03 per share in 2024, driven by investments in service reliability [22] - Electric distribution earnings increased to $1.80 per share in 2025 from $1.77 per share in 2024, due to base distribution rate increases [22] - Natural gas distribution segment earnings rose to $0.97 per share in 2025 from $0.81 per share in 2024, attributed to base distribution rate increases and infrastructure investments [23] Market Data and Key Metrics Changes - The company achieved top decile performance for both MBI and SAIDI metrics, indicating improved reliability for customers [8] - The average electric customer experienced an outage only once in nearly two years, reflecting high service reliability [8] Company Strategy and Development Direction - The company plans to invest approximately $26.5 billion in infrastructure over the next five years, a $2.3 billion increase from the previous plan [25] - Key focus areas include grid modernization, resiliency projects, and compliance with state safety regulations [14] - The company aims to enhance customer experience and maintain high reliability while addressing aging infrastructure [13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of partnerships with state policymakers to address affordability and reliability [5] - The company expects 2026 to be a transformational year, with a focus on completing offshore wind commitments and managing potential sales [17] - Long-term earnings growth is projected to be in the range of 5%-7% by 2028, with expectations for growth towards the upper half of this range [38] Other Important Information - The company received regulatory approvals for rate adjustments, including a $55 million increase for NSTAR Electric and a $10 million increase for NSTAR Gas [29] - The company is actively pursuing the sale of Aquarion Water Company, with a court ruling in favor of the sale process [30] Q&A Session Summary Question: Growth trajectory and balance sheet flexibility - Management indicated that if the Aquarion sale is approved, it could eliminate some funding needs and potentially be accretive to growth [46][60] Question: Status of Revolution Wind project liabilities - Management clarified that the obligation is to Global Infrastructure Partners, not Ørsted, and that the project is on track for first power soon [60][65] Question: Sources and uses of cash regarding minority interest sales - Management discussed various alternatives for financing, including potential minority interest sales, but emphasized that these are not immediate plans [72] Question: Timeline for Connecticut AMI resolution - Management expects to meet regarding AMI in Connecticut soon and is optimistic about clarity on investment recovery mechanisms [75] Question: Impact of Aquarion sale on equity needs - Management confirmed that equity needs remain unchanged regardless of the Aquarion sale outcome, but alternative financing flexibility exists [103]

Core Viewpoint - Texas Pacific Land Corporation (TPL) is transitioning towards high-growth infrastructure, particularly in AI-linked digital infrastructure, while maintaining its traditional revenue streams from oil and gas royalties [5]. Group 1: Company Overview - TPL is a land and resource management company based in Dallas, Texas, founded in 1888, and is one of the largest private landowners in Texas [1]. - The company has a market capitalization of approximately $28.5 billion [1]. Group 2: Market Performance - Over the past year, TPL has underperformed the broader market with a decline of 7.5%, but has seen significant gains of 44.1% in 2026 [2]. - In comparison, the S&P 500 Index has increased by 14.4% over the past year and is up 1.4% year-to-date [2]. Group 3: Strategic Developments - TPL is experiencing momentum due to a strategic pivot into non-energy sectors, specifically through a partnership with Bolt Data & Energy to develop data centers on its West Texas land [5]. - This diversification aims to create a new revenue stream, reducing reliance on the volatile oil and gas royalty model [5]. Group 4: Analyst Expectations - For the fiscal year ending December 2025, analysts project TPL's earnings per share (EPS) to grow by 5.3% to $6.92 on a diluted basis [6]. - The consensus among analysts is a "Moderate Buy," supported by two "Strong Buy" ratings and one "Hold" [6]. Group 5: Price Targets - Texas Capital Securities has reaffirmed its "Buy" rating on TPL with a price target of $390, citing potential data center development as a growth catalyst [7]. - TPL is currently trading above its average price target of $316.67 and Texas Capital's highest price target of $390 [7].

Core Viewpoint - The article highlights three companies known as "Dividend Champions," which have a long history of increasing dividends, making them attractive for income investors as interest rates are expected to decline in the future [3]. Group 1: Royal Gold - Royal Gold, based in Denver, Colorado, has a dividend yield of 0.77% and has raised its dividend every year since July 2000, with a total increase of 58.3% since 2021, outpacing the 19% inflation during the same period [4][5][6]. - The company has maintained its dividend growth even during periods of declining gold prices, such as from 2012 to 2020, when its dividend increased by 87% despite gold prices falling [6][8]. - Royal Gold's business model involves acquiring royalty interests in various metals, allowing it to sustain dividend increases regardless of gold price fluctuations [7][8]. Group 2: York Water - York Water, a Pennsylvania-based water utility, has announced its 29th annual dividend hike, maintaining a record of 620 consecutive payouts since 1816, which is believed to be a record for American companies [9][10]. - The company's recent dividend increase of 4% in 2025 is above the 2.7% inflation rate, and since 2021, it has raised its dividend by 22%, demonstrating its ability to keep pace with inflation [10]. - With a payout ratio of just 63%, York Water's dividend appears sustainable, as its earnings are growing faster than its payouts [12]. Group 3: Caterpillar - Caterpillar, a leading manufacturer of construction and mining equipment, has increased its dividend for 31 consecutive years, including a 7% increase announced last June [13][14]. - The company's dividend has grown by 46.6% since 2021, significantly outpacing inflation, and its long-term track record shows that payouts have tripled over the last 25 years [14][16]. - Caterpillar's resilience is evident as it continued to increase dividends during economic downturns, such as the Financial Crisis and the pandemic, showcasing management's commitment to rewarding shareholders [16][17].

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].

Core Insights - Eversource Energy is a leading utility company engaged in electricity and natural gas generation, transmission, and distribution, with a market cap of approximately $25.4 billion [1][2] Company Overview - Eversource Energy operates through multiple segments, including Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution [1] - The company serves over 4.4 million customers, categorizing it as a large-cap stock [2] Stock Performance - The stock is down 10.1% from its 52-week high of $75.25, reached on October 28, but has gained 5.7% over the past three months, outperforming the State Street Utilities Select Sector SPDR ETF (XLU) [3] - Year-to-date, the stock is up 17.8% and 11.7% over the past 52 weeks, again outperforming XLU's gains of 12.9% YTD and 9.4% over the past year [4] - The stock has generally trended upward since mid-May, trading mostly above the 200-day moving average, but has been below the 50-day moving average since mid-November [4] Financial Performance - Eversource reported a significant net income turnaround in Q3 2025, with earnings of $367.5 million, or $0.99 per share, compared to a loss of $118.1 million, or $0.33 per share, in the prior-year quarter [5] - The company's stronger earnings were driven by its core regulated electric and gas businesses and infrastructure investments [5] Regulatory Challenges - The stock experienced a significant decline in mid-November after Connecticut regulators rejected the proposed sale of its Aquarion water utility unit, valued at over $2 billion [6] Competitive Position - Eversource has outperformed its rival, Edison International, which has declined 28% YTD and 30.6% over the past year [7]

Company Overview - Texas Pacific Land Corporation (TPL) has a market capitalization of $22.7 billion and is one of the largest landowners in Texas, owning over 870,000 acres primarily in the Permian Basin [1] - The company generates revenue through oil and gas royalties, land and resource management, and water services, rather than direct energy production [1] Stock Performance - TPL shares have underperformed the broader market, declining 28.5% over the past 52 weeks and 9% in 2025, while the S&P 500 Index has increased by 14.5% over the past year and 16.5% year-to-date [2] - Compared to the SPDR S&P Oil & Gas Exploration & Production ETF, which saw a 6.2% decline over the past 52 weeks, TPL's performance was relatively better [3] Financial Performance - In the third quarter, TPL reported revenue of $203.1 million and net income of $121.2 million, equating to $5.27 per share, driven by strong performance in both the Land & Resource Management segment ($122.3 million) and the Water Services & Operations segment ($80.8 million) [4] - The company maintained a robust cash flow of $122.9 million and enhanced financial flexibility with a new $500 million revolving credit facility [5] Strategic Moves - TPL announced a three-for-one stock split and completed strategic land and royalty acquisitions worth $505 million, which supports its long-term growth outlook in the Permian Basin [5] - Following these announcements, TPL shares increased by 10% in the subsequent trading session [5] Market Position - TPL currently trades above its mean and average price target of $625 [6] - The stock has a consensus "Strong Sell" rating overall [5]

Financial Data and Key Metrics Changes - For Q3 2025, consolidated total revenue reached $203 million, with an Adjusted EBITDA of $174 million, resulting in an Adjusted EBITDA margin of 85% [17][18] - Free cash flow increased by 15% year-over-year to $123 million [18] - Oil and gas royalty production achieved a record of approximately 36,300 barrels of oil equivalent per day, representing a 9% sequential increase and a 28% year-over-year increase [4][18] Business Line Data and Key Metrics Changes - Water sales revenue reached a record $45 million, reflecting a 74% sequential growth and a 23% year-over-year increase [4] - Produced water royalty revenues were $32 million, showing a 5% sequential growth and a 16% year-over-year increase [4] - The portfolio of acquired minerals and royalties contributed to 18% of consolidated royalty production, generating a mid-teens pre-tax cash flow yield [6] Market Data and Key Metrics Changes - Despite weak benchmark oil and gas prices, production volumes benefited from robust activity in northern Culberson, northern Reeves, and central Midland subregions [5] - The average lateral lengths for wells in 2025 are approximately 7% longer than last year and 23% longer compared to 2019 [5] Company Strategy and Development Direction - The company focuses on an active management and consolidation strategy aimed at growing oil and gas royalties, surface, and water assets [4] - TPL is positioned to capitalize on low commodity prices to consolidate high-quality Permian assets, with a belief that longer-term oil prices will be higher than current levels [9][12] - The company announced acquisitions of Permian oil and gas royalties and surface acreage, with a total purchase price of approximately $474 million [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the Permian Basin, despite current low commodity prices [10][12] - The company believes that global liquids demand continues to grow steadily, and that the U.S. oil supply will rationalize in response to pricing signals [10] - TPL's recent credit facility of $500 million enhances liquidity and allows for greater flexibility in funding growth opportunities [12][22] Other Important Information - The company plans to begin commissioning a 10,000 bbl per day desalination facility by the end of the year [18] - A three-for-one stock split of the company's common stock was approved and is expected to be completed in December 2025 [21] Q&A Session Summary Question: What is a good run rate for the business, and how much of your water sales are recycled barrels versus water from source? - Management indicated that they are working to minimize volatility in water sales and are focused on maximizing recycled water usage, which is influenced by availability and demand [35][36] Question: Can you provide details on the royalty acquisition announced? - Management stated that the acquisition is expected to provide a strong growth outlook and is operated by well-capitalized operators in the Permian [26][28] Question: How does TPL feel about its position in the power and data center market in West Texas? - Management expressed confidence in TPL's positioning, noting that they have significant available land and are in discussions for potential opportunities [29][30] Question: How is the competitive landscape in the Permian for M&A opportunities? - Management noted that while lower commodity prices create challenges, there are still healthy opportunities in the pipeline across various regions in the Permian [43][45]