$1.6B / 21k acres = $76,190/acre.
Resolute’s 21k acres compares well with TPL’s 24k net acre position though I’m learning that non-operating stakes are generally valued higher.
Anyhow, if we say TPL’s mineral rights are worth $1.6B, the rest of it is worth $2.85B with the stock price at $573.
Royalties were 42% of top line over the nine months ended 9/30/18 and for Q3 by itself. If we take out the O&G top line from net income (meaning no expenses are attributed to it), we get to a projected quarterly after tax net income of $25.7MM/quarter and $102.6MM/year simply based on Q3 results. ~$100MM in earnings per year implies a 28 P/E on all non-royalty income.
$63,195k before tax Q3 net income – $31,253k O&G top line = $31,942k projected net income before tax. After tax, we can estimate it to be $25,657k or $3.30/share.
$25,657k x 4 = $102.6MM in earnings per year.
$2.85B remaining market cap / $102.6MM earnings = 27.7x estimated P/E.
Oh, and the land is worth something too…