Platts:Higher prices lead to better returns, but producers still cautious
The Delaware continues to lead all US shale plays as a stronger Waha price has boosted most of the region’s robust wellhead gas revenue, pushing this region’s IRRs into the 25% area. With IRRs of 20% to 30%, operators will likely start to increase their completion activity quickly in the near term, according to Platts Analytics. Hydraulic fracturing of the approximately 200 drilled-but-uncompleted wells will help Texas and New Mexico operators stabilize the region’s production after the reduction in activity experienced in 2020.
The Texas Pacific Land Trust Investor 
Hopefully, auxilliary water sales will go substantially higher along with natgas.
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I have seen lots of discussion on TPL valuation. I attempted that here: https://researchforvalue.substack.com/p/the-permian-basin-in-a-new-corporation-212
It is by no means perfect but I do try and attempt to grapple with the complicate nature of TPL’s assets.
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Thanks very much!
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I appreciate you sharing this here. I’ve decided to keep my personal thoughts on valuation off the blog as I don’t want it to be perceived as overly promotional. I try to share resources and relevant information that I see in an objective way. Since I have that base covered, I welcome the opinions of others on valuation. Perhaps I’ll set up a post where it can be explicitly discussed in the comments section.
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Very understandable. I hope that it encourages good discussion as I know my valuation is not perfect, but I haven’t seen many attempts at a valuation of the assets that TPL owns, i.e. its land, royalties, etc.
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Appreciate the valuation info RFV and of course all the great work you do TPLBlogger. I don’t post here as often as I used to, but been here since the start. Great blog and community.
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