• Texas Pacific Land recently announced a partnership with Bolt Data & Energy to develop large-scale data center campuses on its West Texas land, including a US$50 million investment and water-supply rights, alongside confirming a three-for-one stock split effective December 22, 2025, with split-adjusted trading beginning December 23, 2025.
• This move marks a push to monetise its land and water assets beyond traditional oil and gas royalties, potentially reshaping how investors think about the company’s long-term revenue mix.
• We’ll now examine how Texas Pacific Land’s push into data center campuses could influence its existing investment narrative built around Permian royalties and water services.

These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Texas Pacific Land Investment Narrative Recap

To own Texas Pacific Land, you generally have to believe in the long term value of its Permian land, royalty streams and water services, while accepting share price volatility and a rich valuation. The Bolt Data & Energy data center plan and upcoming three for one stock split do not change the central near term catalyst, which is how consistently TPL can translate operator activity and water volumes into cash flow, nor the key risk of elevated expectations embedded in its high earnings multiple.

The announcement that TPL will execute a three for one stock split in December 2025 sits alongside the data center initiative as another development investors are watching. While a split does not change business value, it often widens the potential shareholder base, which matters when sentiment is already sensitive to the company’s premium P E ratio and the market’s view on the durability of its royalty and water income.

Yet investors also need to be aware that a premium valuation can quickly magnify any disappointment in...

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 a roughly $150 million earnings increase from $460.2 million today.

Uncover how Texas Pacific Land's forecasts yield a $280.83 fair value, a 17% downside to its current price.

Exploring Other Perspectives

Fourteen fair value estimates from the Simply Wall St Community span roughly US$280 to almost US$1,800 per share, underscoring how far apart individual views can be. Set against that wide range, the recent data center partnership and unchanged reliance on Permian royalties and water income give you several different angles to test your own expectations about TPL’s future performance.

Explore 14 other fair value estimates on Texas Pacific Land - why the stock might be worth over 5x more than the current price!

Build Your Own Texas Pacific Land Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Texas Pacific Land research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Texas Pacific Land research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Texas Pacific Land's overall financial health at a glance.

Searching For A Fresh Perspective?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Rare earth metals are the new gold rush. Find out which 39 stocks are leading the charge.
• Find companies with promising cash flow potential yet trading below their fair value.

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.