How do you feel about tpl for the long term

Texas Pacific Land (TPL) appears to be a strong long-term investment, and here are the reasons why:

1. Consistent Financial Growth: TPL has demonstrated consistent growth in net income, revenue, and diluted EPS over the past three years, with a net income CAGR of 22.58%, a revenue CAGR of 18.35%, and a diluted EPS CAGR of 23.09%.
2. Healthy Dividend and Dividend Growth: TPL has a history of paying dividends, with a dividend yield of 1.8% as of October 11, 2024. The company has also increased its dividend in the past, with a special dividend of $10 per share announced in June 2024, indicating a commitment to returning value to shareholders.
3. Strategic Land Ownership: TPL's business model focuses on land and resource management, including oil and gas royalties, which provide a stable revenue stream. The company's significant land ownership in Texas, including approximately 868,000 acres, provides a competitive advantage.
4. Record-Breaking Performance: TPL's Water Services and Operations segment set records for sales revenues, volumes, and net income in Q2 2024, highlighting the company's operational strength.
5. Confidence from Institutional Investors: Institutional investors such as D.A. Davidson & CO. and Victory Capital Management have increased their stakes in TPL, signaling confidence in the company's future growth and performance.
6. Market Performance: TPL's stock has soared to an all-time high of $996.82, reflecting investor confidence and the company's strong market valuation.

However, it's important to consider the following:

1. Valuation Concerns: TPL's P/E ratio is 56.1, which is on the higher end, suggesting that the stock may be somewhat expensive compared to its peers.
2. Oil and Gas Market Volatility: As an oil and gas royalty company, TPL's performance is tied to the volatility of the oil and gas market, which can impact its revenue and profitability.

In conclusion, while there are some valuation and market volatility concerns, TPL's consistent financial growth, healthy dividend history, strategic land ownership, and strong market performance make it a compelling long-term investment option for those seeking exposure to the oil and gas sector and looking for a stable income stream.