Decline in Oil and Natural Gas Prices Affected Texas Pacific Land Corporation (TPL) in Q4
Wedgewood Partners, an investment management company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Wedgewood Composite’s net return was 11.4% compared to the Standard & Poor’s 11.7%, Russell 1000 Growth Index’s 14.2%, and Russell 1000 Value Index’s 9.5% return for the same period. Year-to-date, the fund returned 29.2% compared to 26.3%, 42.7%, and 11.5%, respectively for the indexes. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Wedgewood Partners featured stocks such as Texas Pacific Land Corporation (NYSE:TPL) in the fourth quarter 2023 investor letter. Headquartered in Dallas, Texas, Texas Pacific Land Corporation (NYSE:TPL) is a landowner in the State of Texas that engages in land and resource management, and water services and operations businesses. On January 12, 2024, Texas Pacific Land Corporation (NYSE:TPL) stock closed at $1,531.22 per share. One-month return of Texas Pacific Land Corporation (NYSE:TPL) was -4.13%, and its shares lost 27.38% of their value over the last 52 weeks. Texas Pacific Land Corporation (NYSE:TPL) has a market capitalization of $11.752 billion.
Wedgewood Partners stated the following regarding Texas Pacific Land Corporation (NYSE:TPL) in its fourth quarter 2023 investor letter:
"Texas Pacific Land Corporation (NYSE:TPL) detracted from performance during the fourth quarter. Oil and gas royalty revenues declined year over year, mostly due to lower oil and gas prices. Although reported production also declined, this is related to transient operational issues experienced by producers that operate on the Company’s acreage. While it was a challenging quarter for commodity prices and the Company’s oil and gas operator-customers, with the rig count declining in many U.S. basins, it possesses a uniquely high-quality land, evidenced by a rising rig count on the Company's acreage. Importantly the Company's well inventory grew almost +30% quarter over quarter, which should convert into increased production over the coming year."
A vast oil and gas rig silhouetted in the sunset, capturing the power of Swift Energy Company.
Texas Pacific Land Corporation (NYSE:TPL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Texas Pacific Land Corporation (NYSE:TPL) at the end of third quarter which was 23 in the previous quarter.
We discussed Texas Pacific Land Corporation (NYSE:TPL) in another article and shared the list of very cheap energy stocks ready to explode. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
