BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Independent Stock Specific Research

TPL: Rising Production, Raising Estimates

TPL: Special Dividend While Production Re-Ramps

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

<ul type="disc"><li>
Texas Pacific Land (TPL) benefited from a higher crude oil price resulting in increased demand for TPL’s water services and higher royalty revenue. TPL remains unhedged to the price of crude oil creating opportunity to generate greater royalty revenue as the price of crude oil advances.</li></ul> <ul type="disc"><li>While there has been increased activity in the Permian Basin, rig count and overall activity remain depressed compared to pre-COVID-19 levels. TPL stands to benefit from energy companies bringing drilled uncompleted (“DUC”) wells online.</li></ul> <ul type="disc"><li>TPL reported third quarter revenue of $123.7 million compared to $95.9 million in the second quarter. We had been projecting $100.5 million.</li></ul> <ul type="disc"><li>We are making some changes to our earnings model for the fourth quarter and all of 2022. The higher price of crude oil could entice more activity in 2022, but we do not believe it would be much of an offsetting factor in the seasonally slow fourth quarter.</li></ul>


Texas Pacific Land (TPL) benefited from a higher crude oil price resulting in increased demand for TPL’s water services and higher royalty revenue. TPL remains unhedged to the price of crude oil creating opportunity to generate greater royalty revenue as the price of crude oil advances. While there has been increased activity in the Permian Basin, rig count and overall activity remain depressed compared to pre-COVID-19 levels. TPL stands to benefit from energy companies bringing drilled uncompleted (“DUC”) wells online. TPL reported third quarter revenue of $123.7 million compared to $95.9 million in the second quarter. We had been projecting $100.5 million. We are making some changes to our earnings model for the fourth quarter and all of 2022. The higher price of crude oil could entice more activity in 2022, but we do not believe it would be much of an offsetting factor in the seasonally slow fourth quarter.

Texas Pacific Land

TPL: Scaled for Growth