Texas Pacific Land Corporation: Still Too Expensive

Long PlayerInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryTexas Pacific Land Corporation remains highly expensive relative to its growth profile, with a price-earnings ratio of 52.Industry norms do not support such elevated multiples.TPL may have considerable downside risk in excess of other possibilities once volatility subsides.While commodity prices may rise further if instability persists (due to the Iranian situation), the timing of normalization is highly uncertain.Recent geopolitical tensions, notably the Iran situation and Strait of Hormuz closure, have driven TPL’s stock price sharply higher.This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » songqiuju/iStock via Getty Images The last article on Texas Pacific Land Corporation (TPL) mentioned that the stock was extremely expensive for the growth characteristics of the company. Since then, the Iran situation that includes effectively closing the Strait ofThis article was written byLong Player25.53K FollowersFollowLong Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.