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Texas Pacific Land Corporation (TPL)
:TPL
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Texas Pacific Land
(NYSE:TPL)80Outperform
Texas Pacific Land (TPL) vs. S&P 500 (SPY)
Market Cap
$31.60B
Dividend Yield0.37%
Average Volume (3M)124.64K
Price to Earnings (P/E)69.7
Beta (1Y)0.78
Revenue Growth11.75%
EPS Growth12.18%
CountryUS
Employees111
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)19.72
Shares Outstanding22,984,798
10 Day Avg. Volume141,671
30 Day Avg. Volume124,639
Financial Highlights & Ratios
PEG Ratio5.72
Price to Book (P/B)N/A
Price to Sales (P/S)44.77
Price to Cash Flow (P/CF)62.40
P/FCF Ratio62.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1,090.00Price Target Upside-20.71% Downside
Rating ConsensusHold
Number of Analyst Covering1
Texas Pacific Land Business Overview & Revenue Model
Company DescriptionTexas Pacific Land Corporation (TPL) is one of the largest landowners in the state of Texas, primarily involved in managing land, mineral rights, and royalty interests. The company operates within the energy and real estate sectors, leveraging its vast acreage in the Permian Basin, one of the most prolific oil and gas producing regions in the United States. TPL provides services such as land and resource management, along with water sourcing and treatment solutions for energy producers.
How the Company Makes MoneyTexas Pacific Land makes money primarily through three key revenue streams: royalties from oil and gas production, land sales and leases, and water services. The company earns royalties by granting exploration and production companies the rights to extract oil and gas from its lands in exchange for a percentage of the production revenue. In addition to royalties, TPL generates income by selling or leasing its land holdings for various purposes, including energy development and agriculture. Furthermore, TPL provides water sourcing, treatment, and recycling services to oil and gas operators in the Permian Basin, capitalizing on the industry's need for water management solutions. Partnerships with exploration and production companies and the strategic location of its land assets contribute significantly to TPL's earnings.
Texas Pacific Land Financial Statement Overview
Summary
Texas Pacific Land demonstrates strong financial health with excellent profitability, robust growth, and a solid balance sheet. Minimal debt levels, high equity, and strong cash flows position it well within the fossil fuels industry. Potential risks include revenue volatility due to industry fluctuations, but current financial metrics show resilience.Income Statement
Texas Pacific Land has shown strong revenue growth from $631.6 million in 2023 to $705.8 million in 2024, a growth rate of 11.8%. The gross profit margin is excellent at 100%, indicating effective cost management. The net profit margin is robust at 64.3%, showing strong profitability. EBIT and EBITDA margins are also high at 76.4% and 85.6% respectively, showcasing strong operational efficiency.87
Very Positive
Balance Sheet
The company's balance sheet is notably strong with a debt-to-equity ratio of practically zero due to minimal debt. Return on equity is impressive at 40.1%, reflecting efficient use of shareholder funds. The equity ratio is high at 90.7%, suggesting a stable financial foundation with a low level of liabilities.92
Very Positive
Cash Flow
The free cash flow growth rate is substantial at 21.8%, indicating improved cash generation. The operating cash flow to net income ratio is 1.08, showing healthy cash flow relative to earnings. The free cash flow to net income ratio is 1.02, demonstrating efficient conversion of profits into cash.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 705.82M | 631.60M | 667.42M | 450.96M | 302.55M | Gross Profit |
| 705.82M | 583.27M | 634.53M | 421.47M | 269.95M | EBIT |
| 539.14M | 486.05M | 562.31M | 362.39M | 217.25M | EBITDA |
| 564.30M | 500.81M | 577.68M | 378.65M | 231.66M | Net Income Common Stockholders |
| 453.96M | 405.64M | 446.36M | 269.98M | 176.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 369.83M | 725.17M | 510.83M | 428.24M | 281.05M | Total Assets |
| 1.25B | 1.16B | 877.43M | 764.06M | 571.63M | Total Debt |
| 453.00K | 1.17M | 1.96M | 1.45M | 2.82M | Net Debt |
| -369.38M | -724.00M | -508.88M | -426.80M | -278.23M | Total Liabilities |
| 115.56M | 113.20M | 104.54M | 112.35M | 86.45M | Stockholders Equity |
| 1.13B | 1.04B | 772.89M | 651.71M | 485.18M |
| Cash Flow | Free Cash Flow | |||
| 65.40M | 378.29M | 426.27M | 249.62M | 185.00M | Operating Cash Flow |
| 490.67M | 418.29M | 447.15M | 265.16M | 207.04M | Investing Cash Flow |
| -471.75M | -60.31M | -21.40M | -15.00M | -26.00M | Financing Cash Flow |
| -378.09M | -144.61M | -336.81M | -104.95M | -201.66M |
Texas Pacific Land Technical Analysis
Positive
1374.74
Price Trends
1313.63
Positive
1294.83
Positive
1042.21
Positive
Market Momentum
7.36
Positive
52.76
Neutral
50.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPL, the sentiment is Positive. The current price of 1374.74 is above the 20-day moving average (MA) of 1360.99, above the 50-day MA of 1313.63, and above the 200-day MA of 1042.21, indicating a bullish trend. The MACD of 7.36 indicates Positive momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 50.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TPL.
Texas Pacific Land Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $31.60B | 69.71 | 41.73% | 0.37% | 11.75% | 12.18% | |
79 Outperform | $965.30M | 12.12 | 922.55% | 8.23% | 4.88% | 5.15% | |
62 Neutral | $1.43B | 14.14 | 32.48% | 10.67% | -1.39% | -23.38% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
TPL
Texas Pacific Land
1,374.74
866.86
170.68%
DMLP
Dorchester Minerals
30.17
1.59
5.56%
SBR
Sabine Royalty
66.21
9.85
17.48%
Texas Pacific Land Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -2.04% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in production volumes, strategic investments, and shareholder returns, indicating strong company performance. Despite challenges such as declining realized prices and costly disposal wells in New Mexico, the overall sentiment leans positive due to the robust growth and future opportunities discussed.Highlights
Record Production Volumes
Oil and gas royalty production volumes increased 14%, water sales volumes increased 31%, and produced water royalty volumes increased 37% year-over-year, all representing corporate records.
Strategic Investments Yield Results
Surface and water revenues were up 23% year-over-year due to strategic investments in people, technology, and infrastructure.
Significant Shareholder Returns
TPL returned a record $376 million to shareholders in 2024 through dividends and buybacks.
Positive Permian Outlook
Fourth quarter 2024 new permits in the Permian were up approximately 20% year-over-year with a constructive outlook for 2025.
Innovative Growth Opportunities
TPL is exploring opportunities in data centers, power generation, and grid infrastructure, leveraging its assets for future growth.
Desalination and Reuse Advancement
Construction of a 10,000 barrel per day desalination test facility is underway, with completion expected mid-2025, and multiple beneficial reuse initiatives are advancing.
Lowlights
Decline in Realized Prices
Realized oil and natural gas prices declined year-over-year by 2% and 48%, respectively.
Challenges with Deeper Disposal Wells
Deeper disposal wells in New Mexico are significantly more expensive, and overall disposal capacity in the region has declined.
Company Guidance
During the Texas Pacific Land Corporation Fourth Quarter 2024 Earnings Call, significant guidance was provided highlighting the company's remarkable achievements and strategic outlook. In 2024, TPL set records with a 14% increase in oil and gas royalty production, a 31% rise in water sales volumes, and a 37% increase in produced water royalty volumes. The company's strategic investments in technology and infrastructure led to a 23% year-over-year increase in surface and water revenues. Over $400 million was invested in acquiring high-quality Permian assets, contributing to a record shareholder return of $376 million through dividends and buybacks. Looking to 2025, the company anticipates a promising outlook for the Permian, with a 20% increase in new permits and a continued focus on next-generation opportunities like data centers and water desalination. TPL aims to invest $65 to $75 million in capital expenditures, including $28 million for produced water desalination and gas generation projects, while returning substantial capital to shareholders. The company maintains a strong balance sheet with zero debt and a year-end cash balance of approximately $370 million.Texas Pacific Land Corporate Events
Business Operations and StrategyFinancial Disclosures
Texas Pacific Land Reports Record 2024 Financial Performance
Positive
Feb 19, 2025
On February 19, 2025, Texas Pacific Land Corporation announced its fourth quarter and full year 2024 results, highlighting record performance in various segments, including water services and oil and gas royalty production. The company achieved significant financial milestones with increased revenues and net income, driven by strategic acquisitions and operational efficiencies. Throughout 2024, TPL expanded its royalty acreage and surface assets, setting new annual records for production and financial metrics. As part of its growth strategy, the company is exploring next-generation opportunities and is constructing a produced water desalination test facility to enhance its operations and industry positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.