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    Does Texas Pacific Land’s (TPL) Stock Split Strategy Reveal a Shift in Its Long-Term Playbook?

    Simply Wall St·12/14/2025 20:15:17
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    • Texas Pacific Land Corporation has already amended its certificate of incorporation to enable a three-for-one stock split, increasing authorized common shares from 46,536,936 to 139,610,808 effective December 22, 2025.
    • This stock split, combined with fresh analyst coverage and ongoing interest from a major shareholder, could reshape how investors think about TPL’s liquidity and long-term positioning.
    • We’ll now explore how the three-for-one stock split and higher authorized share count interact with Texas Pacific Land’s existing investment narrative.

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    Texas Pacific Land Investment Narrative Recap

    To own Texas Pacific Land, you generally need to believe in the long-term value of its Permian Basin land, royalty streams and growing water services business, even after a year of weaker share price performance. The three-for-one stock split and higher authorized share count primarily affect trading mechanics and liquidity, and do not materially change the near term earnings outlook or the key risk that revenue growth slows relative to expectations.

    The most relevant recent announcement here is the stock split itself, which triples the number of shares outstanding without changing the company’s overall market value. For investors focused on catalysts like continued royalty and water services growth, the split mainly matters if improved liquidity and a lower per share price widen the potential shareholder base and sharpen market attention on how TPL executes from here.

    Yet investors should be aware of how any slowdown in royalty production growth could affect...

    Read the full narrative on Texas Pacific Land (it's free!)

    Texas Pacific Land's narrative projects $895.3 million revenue and $610.3 million earnings by 2028. This requires 7.2% yearly revenue growth and about a $150.1 million increase in earnings from $460.2 million today.

    Uncover how Texas Pacific Land's forecasts yield a $842.50 fair value, in line with its current price.

    Exploring Other Perspectives

    TPL 1-Year Stock Price Chart
    TPL 1-Year Stock Price Chart

    Thirteen members of the Simply Wall St Community currently estimate TPL’s fair value between about US$402 and US$1,791, showing very different expectations. When you set that against the company’s focus on expanding water services as a second growth engine, it underlines how important it is to compare several viewpoints before deciding how TPL might fit into your portfolio.

    Explore 13 other fair value estimates on Texas Pacific Land - why the stock might be worth less than half the current price!

    Build Your Own Texas Pacific Land Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.