AI has left a number of big winners in its wake. The best known are the microchip makers, who aspire to become the infrastructure on which the new world rests. For their part, nuclear companies (notably Vistra) are taking off on Wall Street due to the rise of data centersthe foundations of this revolution and which will require energy supplies. Following this last line, a strange and unexpected event for many investors occurred in the markets. A company born in the days of the “Wild West” and which seemed doomed to decline more than a century later, has tripled its value and officially entered the S&P 500.
Texas Pacific Land was created in 1888. At that time, in the midst of the consolidation fever of the “Wild West”, the United States attempted to unite the two coasts with a railroad linking Texas to California. However, the route was not completed and resulted in a total bankruptcy of Pacific Railway Companythe signature in charge. The disgrace of this project had left behind a trail of ownerless land. Vast areas of land had to be managed by a new company created for this purpose.
This is where the role in the history of TPL, a small land manager which would live to liquidate assets of a railway giant which, a priori, would not have much value. However, beneath the soil of these lands would beat the blood that would move the new world, oil, and Texas would become the most important discovery field in the entire country and one of the largest on the planet.
However, BPD I am not going to take advantage of this opportunity due to lack of ambition. The company did not consider itself part of the industry and so got rid of them, quickly selling them and keeping only a few “royalties”. This is why, despite 3,600 square kilometers of portfolio, it has barely 100 workers and $632 million in annual revenue.
Today, the company appears to have been blessed by destiny once again, and in 2024 it is close to growth of over 200%, hitting the milestone of entering the S&P 500 last Friday, replacing Marathon Oil and reaching a capitalization of $38.71 billion. Beyond crude oil, it has found its big market in artificial intelligence. To understand this phenomenon You need to know the business model of this company. Basically, TPL makes money in two ways. First, thanks to water, which represents a third of its income. The company sells water to “fracking” companies (which is necessary for this extraction process) and then leases its land for land.
For its part, two thirds of its turnover comes directly from crude oil.the company that enabled its first “boom”. The company was only specialized in the raw material in 2026 and was not specialized at the time of the major discoveries, which is why it sold the rights to the land. However, she reserved the right to small royalties for her activity. This is your main source of business. Over the past five years, it has managed to improve its figures through direct leasing to oil companies more generally.
“Energy in Texas may be ‘six times lower than in California’
Today, data centers, the infrastructure on which AI will be built, have found in Texas one of the largest fishing grounds in the world. According to the latest CBRE report, “Texas, and particularly Austin, Dallas, Houston and San Antonio, have become one of the most sought after places in the world“. The reason is the high energy consumption that these assets require, which led, for example, to Microsoft investing in a factory known to have been involved in one of the largest nuclear accidents in history, to stock up.
In this sense, CBRE indicates that Texas offers first “significant resources to power these data centers“, at the same time as there is “energy and electricity deregulation” that encourages “large-scale innovation among the highest in the entire United States.” In this sense, according to the company, the price of The energy in Texas can reach being “six times shorter than in California”, which has increased its appeal.
For TPL, it is the great promise of opening a new business that will increase its prospects. The company itself explained in its latest results that it plans to extend the oil leases it has developed to data centers. “HThere are many conversations happening within the industry and certainly within TPL.” commented Tyler Glover, CEO of the company. “We believe we are as well positioned as anyone in West Texas to provide land and water solutions when opportunities present themselves. “
This is why the last technological rebound reached a company like this in the 19th century, but it was not the last. LandBridge, which is approximately 890 kilometers place in the Permian Basin, has tripled the value of its shares since its IPO in June. The company agreed to buy more land this month in a deal that would increase its square footage by 20%, citing the potential for “digital infrastructure and renewable energy projects.”
It remains to be seen whether these companies manage to use AI to catapult themselves like the real estate empires of a new era or if, on the contrary, the opportunity passes through their doors. In any case, this window places them for the moment in the largest economic focus in the world, the S&P 500. In record time, thethe “landowners” of the Wild West From a little-known activity, they have become one of the great promises for Wall Street analysts.
