Texas Pacific Land Corporation

Texas Pacific Land’s moat rests on irreplaceable land and mineral interests concentrated in the highest-quality U.S. oil basin. The company owns about 874,000 surface acres and roughly 207,000 net royalty acres, plus nonparticipating perpetual royalty interests, enabling it to collect royalties and surface-use fees across well life cycles.

Efficient scale and location advantages restrict credible entrants. Additional moats include switching frictions for operators who need contiguous rights of way, easements, water access and produced-water solutions.

Risks to moat durability come from (a) basin activity cyclicality, (b) regulatory constraints on disposal that could shift fee mix, and (c) potential long-term technology changes in water handling that compress rents. Net, the combination of intangible assets and efficient scale merits a strong but not near-perfect moat score.