Tip: Try a valid symbol or a specific company name for relevant results A pro-grade research workspace with advanced charts, company data and real-time news. Now part of Yahoo Finance Gold.Learn more Jim Cramer Calls Texas Pacific Land (TPL) a “Fantastic Stock” The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading.
Coinbase pays us for certain activity generated through this link. Prices displayed are informational. During the lightning round of the September 10 episode of Mad Money, a caller inquired about Texas Pacific Land Corporation (NYSE:**TPL**), and Jim Cramer commented: > [Buy, buy, buy] It's going higher.
It's in the right industry, and it's a very inexpensive stock, and we profiled it. Ben Stoto introduced it to me. Jim Cramer Defends Intuit (INTU) Against AI Skeptics Ahead of Investor Day Texas Pacific Land Corporation (NYSE:TPL) stands as one of the largest private landowners in the State of Texas, deriving its unique economic strength from vast surface and royalty acreage concentrated primarily in the Permian Basin.
Rather than operating as a conventional upstream exploration and production company, which is usually burdened by heavy capital expenditures for drilling, it primarily collects royalties, surface easements, water sales, and commercial leases from active operators working its land. Financial results for the second quarter highlighted the fundamental power of the company's asset-light model. The company reported quarterly revenues of $246.1 million, representing a robust 31.2% year-over-year increase.
Profitability remained healthy, with an adjusted EBITDA of $215.6 million translating into an 88% margin. Furthermore, Texas Pacific Land Corporation (NYSE:TPL) generated $155.5 million in free cash flow. Despite exceptional operating margins, potential downside risks stem from Texas Pacific Land Corporation's (NYSE:TPL) sensitivity to broader commodity cycles and valuation friction.
During the second-quarter reporting period, TPL's top-line revenue figure of $246.1 million slightly missed consensus expectations. While GAAP earnings per share of $2.23 managed to beat consensus estimates, even modest revenue misses can amplify volatility for a stock trading at premium valuation multiples compared to its traditional peers. A critical structural vulnerability involves Texas Pacific Land Corporation's (NYSE:TPL) direct reliance on drilling activity within the Permian Basin.
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