Texas Pacific Land's Dual Listing and Governance Changes: How They Shape Its Investment Narrative

Texas Pacific Land has completed a dual listing on the NYSE Texas and introduced proxy access for shareholders. The dual listing may broaden its market visibility and shareholder engagement. The adoption of proxy access strengthens the investment case as TPL faces industry and regional uncertainties. TPL's outlook calls for $895.3 million in revenue and $610.3 million in earnings by 2028. Fair value estimates from the Simply Wall St Community range from $401.61 to $1,877.96 per share, highlighting the conversation about future returns and risks.

Texas Pacific Land (TPL) has recently undertaken two significant moves that have caught the attention of investors. The company has completed a dual listing on the newly-launched NYSE Texas and introduced proxy access for shareholders. These strategic moves are aimed at enhancing market visibility and strengthening ties with its regional base.

The dual listing on the NYSE Texas puts TPL's stock front and center in its home state, potentially attracting more local investors and increasing liquidity. Additionally, the introduction of proxy access for shareholders is a governance step that reflects the company's commitment to shareholder engagement. This move allows shareholders to propose candidates for the board of directors, which can foster more transparent and inclusive governance practices.

However, the recent quarterly earnings report showed that TPL missed analyst estimates by $0.43 per share, with earnings of $5.05 and revenue of $187.54 million. This performance, coupled with a 23% year-to-date decline in stock price and a 27% drop in the past three months, has raised questions about the company's future growth prospects.

Despite these challenges, TPL's long-term growth prospects remain promising. The company's water services segment has shown consistent double-digit revenue growth, and its focus on high-margin revenue streams beyond oil and gas royalties suggests durable, high-margin revenue streams. The adoption of proxy access and the dual listing on the NYSE Texas are strategic moves that could enhance TPL's investment case, particularly in the face of industry and regional uncertainties.

Fair value estimates from the Simply Wall St Community range from $401.61 to $1,877.96 per share, highlighting the conversation about future returns and risks. The company's outlook calls for $895.3 million in revenue and $610.3 million in earnings by 2028. However, these estimates are subject to various risks, including shifts in oil demand and tighter water regulations.

Institutional investors, including Candriam S.C.A., Vanguard Group, and GAMMA Investing LLC, have shown growing interest in TPL, with institutional ownership now at 59.94%. This increasing institutional support could provide a tailwind for TPL's stock price in the coming quarters.

References:
[1] https://simplywall.st/stocks/us/energy/nyse-tpl/texas-pacific-land/news/texas-pacific-land-tpl-valuation-insights-as-dual-listing-an
[2] https://www.marketbeat.com/instant-alerts/filing-candriam-sca-has-216-million-stake-in-texas-pacific-land-corporation-tpl-2025-08-24/