TPL Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: TPL's extensive land holdings in the Permian Basin and robust royalty streams position it for long-term growth amid rising energy prices.




Bearish Case: High implied volatility, mean-reverting price action, and customer concentration indicate potential downside risk, especially with regulatory changes.




Potential Outcomes:
  • 60% chance of sector growth, leveraging strategic assets.
  • 50% likelihood of mean reversion impacting prices.
  • 30% potential regulatory impact on land use.



May 21, 2025


Texas Pacific Land Forecast

TPL        Texas Pacific Land











Correlated Assets

Assets that tend to move strongly with TPL



XLF Forecast + Options Trading Strategies   XLF  Financial Select Sector SPDR (0.91)


TRGP Forecast + Options Trading Strategies   TRGP  Targa Resources (0.9)


CRH Forecast + Options Trading Strategies   CRH  CRH Plc (0.87)


AXON Forecast + Options Trading Strategies   AXON  Axon Enterprise (0.87)


RCL Forecast + Options Trading Strategies   RCL  Royal Caribbean (0.85)



Uncorrelated Assets

Assets with little price relationship to TPL



IDN Forecast + Options Trading Strategies   IDN  Intellicheck (-0.0)


POOL Forecast + Options Trading Strategies   POOL  Pool (-0.01)


ANET Forecast + Options Trading Strategies   ANET  Arista Networks (-0.01)


VTRS Forecast + Options Trading Strategies   VTRS  Viatris (-0.02)


IRM Forecast + Options Trading Strategies   IRM  Iron Mountain (0.02)



Anticorrelated Assets

Assets that tend to move strongly against TPL



STM Forecast + Options Trading Strategies   STM  New York Shares (-0.77)


ADNT Forecast + Options Trading Strategies   ADNT  Adient (-0.77)


TDW Forecast + Options Trading Strategies   TDW  Tidewater Inc. - New (-0.78)


NVO Forecast + Options Trading Strategies   NVO  Novo Nordisk (-0.78)


RCKT Forecast + Options Trading Strategies   RCKT  Rocket Pharmaceuticals (-0.78)









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