Texas Pacific Land Trust (TPL: NYSE) is currently trading around $20 per share. TPL owns nearly a million acres of land, and based on current prices, has a market value of about $200 million. With some easy math, this gives the land an implied value of aprox. $200 per acre.
Last year, the average sale was $1,244 per acre. In the last quarter, ending Sept. 30, the company sold land at an average price of $400 per acre. So, what's the actual value of their land holdings? I don't really know… More
| Price | 44.65 |
| Price Change Today | +$0.07 (+0.16%) |
| P&P rating |  |
| Zacks Rank | N/A - N/A |
| Open Price | $44.75 |
| Previous Close | $44.58 |
| Daily Range | $44.50 - $44.99 |
| 52-Week Range | $33.62 - $49.54 |
| Volume | 5,681 |
| Texas Pacific Land Trust conducts business through the sale and lease of lands owned by the company, retaining oil and gas royalties, temporary cash investments and the overall management of the land owned by Texas Pacific. | |
Last year, the average sale was $1,244 per acre. In the last quarter, ending Sept. 30, the company sold land at an average price of $400 per acre. So, what's the actual value of their land holdings? I don't really know, and it's probably hard for them to even estimate. But, I would venture to say it is worth more than $200 per acre.
In addition to the land, TPL also owns a number of oil and gas royalties. I consider this to be a low-risk business and a long-term hold in my personal portfolio.
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