The shale revolution of the mid-2000s turned this unloved land, in some of the most sparsely populated counties in the U.S., into prime real estate.

The trust’s largest holdings are in Culberson, Reeves, Hudspeth and Loving counties, which straddle the Permian’s prolific Delaware Basin. The area is currently being drilled by everyone from Exxon Mobil Corp. and EOG Resources Inc. to Carrizo Oil and Gas Inc. and private-equity firms.

The mineral rights mean that for every barrel of oil pumped from its land, the trust gets paid. More production and/or higher oil prices equals more money.

Last year “marked the most successful year for the Trust in its 130-year history,” according to its annual report. Gross income more than doubled to $132.4 million compared with the year before. The first quarter of 2018 was also a knockout, with revenue and profit doubling again.

The stock, meanwhile, has been surging. The share price barely moved above $20 until 2000, but then rose steadily, reaching $233 before the oil-price cash of 2014. In the past two years, as production from the Permian climbed 50 percent, the stock has taken off, reaching a record-high of $677.15 on May 7.

Warning Signs
Still, there are warning signs: At current prices, TPL is trading at a price to earnings ratio of 46.41, higher than Apple Inc., Facebook Inc. and Google’s parent, Alphabet Inc., and resembling valuations seen during the dot-com bubble.

Chief Executive Officer Tyler Glover, who’s listed in the annual report as being 33 years old, and Chief Financial Officer Robert Packer, listed as 48, didn’t answer phone messages or emails requesting comment. No Wall Street analysts cover the company and it doesn’t host earnings conference calls.

Glover’s pay rose almost three times to $724,000 last year, while Packer got a similar increase to $753,000, according to the annual report.

Maurice Meyer III, the 82-year-old chairman of the trustees, was paid $4,000 last year. However, as a trustee since 1991, he owns shares in Texas Pacific worth about $44 million at current prices, according to data compiled by Bloomberg.

Viper Joins In
While it may have a unique history, Texas Pacific isn’t the only company making money from the Permian’s mineral leases. Diamondback Energy Inc. spun off its mineral rights into Viper Energy Partners LP in 2014. So far this year, Viper has climbed 28 percent.