Texas Pacific Land (TPL) AI Stock Analysis

• Market Cap: $26.52B
• Dividend Yield: 0.49%
• Average Volume (3M): 148.83K
• Price to Earnings (P/E): 58.5
• Beta (1Y): 1.03
• Revenue Growth: 11.75%
• EPS Growth: 12.18%
• Country: US
• Employees: 111
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 19.72
• Shares Outstanding: 22,984,798
• 10 Day Avg. Volume: 159,719
• 30 Day Avg. Volume: 148,831
• PEG Ratio: 4.80
• Price to Book (P/B): N/A
• Price to Sales (P/S): 41.46
• Price to Cash Flow (P/CF): 57.80
• P/FCF Ratio: 57.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,090.00
• Price Target Upside: -13.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Texas Pacific Land's strong financial performance and positive earnings call sentiment are major strengths, indicating robust growth, profitability, and strategic investments. However, the high P/E ratio suggests potential overvaluation, and technical indicators point to possible short-term bearish trends. Overall, TPL maintains a strong position in its industry despite some challenges.

Texas Pacific Land Business Overview & Revenue Model

Company Description

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company's Land and Resource Management segment manages approximately 880,000 acres of land. This segment also holds own a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres located in the western part of Texas. In addition, this segment engages in easements and commercial leases activities, such as oil, gas and related hydrocarbons, power line and utility easements, and subsurface wellbore easements. Further, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche. Its Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water gathering/treatment, infrastructure development, disposal solutions, water tracking, analytics, and well testing services to operators in the Permian Basin. This segment also holds royalties for water sourced from its land. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.

How the Company Makes Money

Texas 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. The company maintains minimal debt levels, high equity, and strong cash flows, positioning it well within the fossil fuels industry. Potential risks include volatility in revenue 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 1263.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPL, the sentiment is Neutral. The current price of 1263.49 is below the 20-day moving average (MA) of 1294.83, below the 50-day MA of 1327.99, and above the 200-day MA of 1116.52, indicating a neutral trend. The MACD of -1.79 indicates Positive momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 58.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TPL.

Texas Pacific Land Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRA	79 Outperform	$19.13B	16.66	8.56%	3.45%	-3.92%	-29.44%
TPL	76 Outperform	$26.52B	58.51	41.73%	0.49%	11.75%	12.18%
EQT	76 Outperform	$28.26B	105.56	1.30%	1.33%	3.00%	-90.88%
OXY	72 Outperform	$36.42B	15.85	8.88%	2.49%	-4.35%	-37.69%
DVN	68 Neutral	$20.16B	6.81	21.77%	4.66%	3.00%	-21.63%
FANG	64 Neutral	$39.05B	8.69	12.20%	5.21%	31.55%	-9.00%
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%

Texas Pacific Land Corporate Events

Texas Pacific Land Reports Record 2024 Financial Performance

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.