The Next Great Texas Land Rush

[The Next Great Texas Land Rush](#) It's not just oil or Trump that is making the Permian Basin so rich... Garrett {NAME} DEC 3 [Icon]([Icon]([Icon]([Icon]( Dear Fellow Expat: In April 2023, I went live on-air to predict the Great Texas Land Rush. It was simple: With a significant amount of U.S. oil tapped for production through 2030, a gold rush of mergers and acquisitions would take place, fueling land and asset prices and boosting stocks. In a related report, I recommended five companies. And while most performed well – especially against the broader 10% gain in the energy sector over the period – one company blew the rest away... 1. Riley Permian (REPX) has struggled since April 2023… down 24%. 2. Ovintiv (OVV) – a producer with leading fracking technology – has gained 28%. 3. Permian Resources (PR) has surged more than 58%. 4. Earthstone Energy (ESTE), bought by Permian Resources, jumped from $13 to $21.17 (a 63% gain) and continued to rise thanks to the share conversion into PR stock. 5. But the winner was a company that owns no oil and gas production... it just owns the dirt. Texas Pacific Land (TPL) has soared 184% since my recommendation last year. Permian Basin land has been on fire not only because of more drilling capacity and interest in U.S. oil production… But also because of every investor’s favorite two letters today: A.I. What’s Driving Texas Pacific Land? Texas Pacific Land’s stock has surged due to increasing demand for regional data centers, and it’s likely to appreciate further. The company sits at the intersection of two powerful forces: [traditional energy and the digital revolution](. TPL's vast Permian Basin holdings have taken on new significance. Beyond oil and gas royalties, TPL's 873,000 acres offer access to cheap, abundant natural gas. This matters because of an unexpected convergence. Bitcoin miners and AI companies both need massive amounts of power, a subject we’ve adamantly discussed in previous issues of the Republic. Miners are racing to find locations with reliable, low-cost energy. After all, their ability to arbitrage low-cost fuels like biogas into a tradable cryptocurrency like Bitcoin has made them some of the market’s most innovative companies. The Permian Basin fits perfectly. The region offers excess natural gas (methane), often sold at deep discounts or flared into the atmosphere. The shift toward digital infrastructure in Texas also creates multiple revenue streams for the company. Beyond traditional land leases, TPL can monetize its resources through power generation agreements, water rights for cooling systems, and infrastructure partnerships. The company's evolution from land trust to digital infrastructure provider signals a significant shift in how energy assets are valued in Texas. And there's another land rush already... It’s the Miners Over Char! As I’ve explained, companies are turning to alternative sources[of biogas and fuels to mine Bitcoin]( and provide cheap energy for AI models. At the Cantor Fitzgerald Cryptocurrency conference in Miami in November, Marathon Digital CEO Fred Thiel argued that Bitcoin mining will require zero-cost energy or near-zero cost to really succeed. With other nations in the BRICS now competing in the mining space, the miners need to improve their financial positions and input costs. According to analyst notes from the conference, Thiel expects the miners to consolidate down to three or four major players in the future because of that cost containment. That wasn’t the first time we’d heard about the likelihood of M&A in this arena. At the AIM Summit in Dubai this October, just a few weeks before Cantor’s event, top investors and innovators gathered to discuss the future of alternative investments. Among the standout discussions was a panel on Bitcoin mining, artificial intelligence, and high-performance computing ("HPC"). The consensus? A wave of mergers is coming for Bitcoin miners. Matt Schultz, Executive Chairman of CleanSpark (CLSK), explained that the industry is on the verge of dramatic consolidation. Of the 20 publicly traded Bitcoin miners in North America today, he, too, expects just three to four players to remain. His reason was the same as Thiel’s: energy. Bitcoin miners depend on affordable, reliable power. Partnerships with utility providers will be the lifeline for survival. Schultz noted that miners are increasingly teaming up with rural utilities to stabilize local power grids and tap into excess energy in areas far from major cities. Jeffrey Lucas, CFO of Bitfarms (BITF), reinforced the idea that only the strongest will survive. He said the companies left standing will need clear, sustainable competitive advantages. For Bitfarms, this means maximizing operational efficiency and exploring diversification to support long-term growth. A wave of mergers appears inevitable. It’s a battle for scale, energy partnerships, and technological innovation. Everyone is fair game… We have about a dozen potential opportunities on our radar. Stay tuned... and most of all... Stay positive, Garrett {NAME} Secretary of Permian Plays [Icon]([Icon]([Icon]([Icon]( [Logo Image](#) Postcards from the Republic 1125 N. Charles St. Baltimore, MD 21202 This email was sent to you because you subscribed to this publication via FinPub. To stop receiving these emails from Postcards from the Republic, Please click [unsubscribe](. © 2024 Postcards from the Republic, All Rights Reserved. Any reproduction, copying, or distribution, in whole or in part, is prohibited without permission from the publisher. Financial Disclaimer: Nothing in this email should be considered personalized financial advice. 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