LandBridge & Texas Pacific Land: The Picks-And-Shovels Of The West Texas AI Boom

Texas Pacific Land is now primarily an AI infrastructure and data center land play, not just an oil royalty company. TPL’s valuation implies an excessive amount of GW of future data center capacity. I rate TPL a SELL with a $250 price target, as its premium bakes in excessive data center growth; LandBridge is a BUY at $75, reflecting more realistic expectations. Key risks include data center cooling design choices, undisclosed water pricing for TPL’s Kilby project, and revenue allocation among LB’s affiliated entities.

My primary focus is the oil and gas industry. When I started researching Texas Pacific Land ( TPL ), I assumed I was analyzing an oil royalty company. After a short read, I knew this was going to This article was written by Andrew Mach 1.19K Followers Follow Oil, Gas, Energy - That's the core of my research.I am a semi-retired former engineer who switched careers in 2018 to focus on capital management. I acquired most of my finance and valuation knowledge from NYU Professor Damodaran and books like "Margin of Safety" and "The Intelligent Investor."I specialize in fundamental analysis and require both a deep "Margin of Safety" and a "Catalyst" to consider adding a stock to my portfolio. My portfolio usually contains no more than 10 stocks.