pay Texas Pacific to operate in its West Texas oilfields and other organizations pay it to build pipelines, roads, power lines or water systems on its land, making for cost-efficient returns, he said.
It's similar with Franco Nevada, which earns its royalties from the precious metal mining business, Davolos said. Archer-Daniels-Midland, which processes the world's crops, should earn a higher "crushing margin" by pushing higher input costs to their customers, he said.
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