Texas Pacific Land (TPL, Financial) was a top contributor to performance during the quarter and the year. Revenue grew over +50% as oil and gas royalties were up over +60% driven by higher realized prices on the production of oil and gas on the Company’s acreage. Production of oil and gas also grew +20% over 2021. The Company’s royalty interests span over 880,000 acres in West Texas. Most of this land is located in the highly productive Delaware Basin of the Permian Basin. We expect that development activity will continue to grow at a rapid pace in this region, primarily driven by both domestic and multinational producers looking to maximize returns on increasingly scarce oil and gas capital expenditures.
From David Rolfe (Trades, Portfolio)'s Wedgewood Partners fourth-quarter 2022 letter.
