Texas Pacific Land Corp (TPL, Financial) also detracted from performance during the quarter. Oil and gas production on the Company’s royalty interests were up slightly year over year while water-related and surface revenues surged +35%. The Company's holdings span nearly 880,000 acres in West Texas. Most of this land is located in the highly productive Delaware Basin of the Permian Basin. Although oil and gas prices will always be volatile over the short-term, we expect development activity on their acreage will grow at a solid pace, primarily driven by both domestic and multinational producers looking to maximize returns on increasingly scarce oil and gas capital expenditures.
From David Rolfe (Trades, Portfolio)'s Wedgewood Partners second-quarter 2023 letter.
