doesnotbarkorbite has it right. Land values have increased significantly due to new oil/gas extraction methods. Average sale price per Acre was $801 for 2012 compared to $377 in 2011. Comparable sales of large tracks in West Texas ranch land have been around 800-1000 per acre for non TPL sales. 99% of land is Ranch/Rural (grazing leases on all of the ranch rural land) which is all they sold in 2013. The remaining 1% may be suitable for development and is worth much more, but prices for these vary and they have not had significant transactions in recent years. This land is just a bonus to the value. But again, the increase in land values in West Texas is the driver of the price. Due to the thinly traded nature of the stock, the increase in demand has driven up the price. At 800 per Acre per value of the land, the stock is still undervalued.