Texas Pacific Land (TPL) AI Stock Analysis

• Market Cap: $20.66B
• Dividend Yield: 0.7%
• Average Volume (3M): 147.64K
• Price to Earnings (P/E): 43.4
• Beta (1Y): 1.31
• Revenue Growth: 12.48%
• EPS Growth: 6.24%
• Country: US
• Employees: 111
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 5.27
• Shares Outstanding: 22,979,410
• 10 Day Avg. Volume: 203,110
• 30 Day Avg. Volume: 147,642
• PEG Ratio: 4.58
• Price to Book (P/B): 22.45
• Price to Sales (P/S): 36.02
• P/FCF Ratio: 55.15
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 27.05
• Enterprise Value/Gross Profit: 30.94
• Enterprise Value/Ebitda: 32.47
• 1Y Price Target: $1,050.00
• Price Target Upside: 21.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 21.12
• Revenue Forecast (FY): $803.00M

• Rating: 76 Outperform
• Price Target: $1,012.00 ▲(17.28% Upside)

Texas Pacific Land's strong financial performance and positive earnings call are significant strengths, showcasing robust growth and strategic acquisitions. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates possible overvaluation. Despite these concerns, the company's strategic focus and liquidity position support a positive outlook.

Positive Factors

Strategic Partnership

The partnership with Bolt Data & Energy to develop data centers on TPL land diversifies revenue streams and leverages land assets, potentially transforming the region into a tech hub.

Revenue Growth

Record revenue and growth in oil, gas, and water segments indicate strong market demand and effective resource management, supporting long-term financial health.

Balance Sheet Strength

A strong balance sheet with minimal debt enhances financial stability and flexibility, enabling strategic investments and weathering industry volatility.

Negative Factors

Commodity Price Challenges

Weak commodity prices can impact revenue from oil and gas royalties, posing a risk to profitability if prices remain low over the long term.

Volatility in Water Sales

Volatility in water sales may affect predictable cash flows and revenue stability, challenging the company's ability to maintain consistent growth in this segment.

High Valuation Concerns

A high P/E ratio suggests potential overvaluation, which could limit stock price appreciation and increase vulnerability to market corrections.

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 generates revenue through multiple key streams. Primarily, it earns money by leasing its land to oil and gas companies, who pay for the right to explore and extract resources. The company receives lease bonuses, which are upfront payments made by lessees, and ongoing royalties based on the volume of oil and gas produced from its properties. Additionally, TPL earns revenue from surface use agreements, allowing companies to use the land for activities related to energy extraction, such as drilling sites and pipelines. The company's significant land holdings in resource-rich areas, particularly in the Permian Basin, enhance its revenue potential. Furthermore, TPL may engage in partnerships with exploration and production companies, leveraging its land assets to foster profitable arrangements that contribute to its 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	772.39M	705.82M	631.60M	667.42M	450.96M	302.55M
Gross Profit	675.39M	634.54M	583.27M	634.53M	421.47M	269.95M
EBITDA	643.62M	564.30M	500.81M	577.68M	378.65M	231.66M
Net Income	476.39M	453.96M	405.64M	446.36M	269.98M	176.05M
Balance Sheet
Total Assets	1.52B	1.25B	1.16B	877.43M	764.06M	571.63M
Cash, Cash Equivalents and Short-Term Investments	531.81M	369.83M	725.17M	510.83M	428.24M	281.05M
Total Debt	16.51M	453.00K	1.17M	1.96M	1.45M	2.03M
Total Liabilities	156.95M	115.56M	113.20M	104.54M	112.35M	86.45M
Stockholders Equity	1.37B	1.13B	1.04B	772.89M	651.71M	485.18M
Cash Flow
Free Cash Flow	514.69M	460.98M	403.26M	427.94M	249.62M	201.95M
Operating Cash Flow	558.81M	490.67M	418.29M	447.15M	265.16M	207.04M
Investing Cash Flow	-383.59M	-471.75M	-60.31M	-21.40M	-15.00M	-26.00M
Financing Cash Flow	-177.33M	-378.09M	-144.61M	-336.81M	-104.95M	-201.66M

Texas Pacific Land Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 862.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 862.91 is below the 20-day moving average (MA) of 879.61, below the 50-day MA of 915.10, and below the 200-day MA of 1052.47, indicating a neutral trend. The MACD of -9.28 indicates Negative momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 79.86 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PR	81 Outperform	$11.47B	12.63	8.58%	4.26%	7.55%	-34.40%
DVN	79 Outperform	$22.48B	8.43	18.35%	2.64%	11.14%	-21.32%
TPL	76 Outperform	$20.66B	43.42	39.37%	0.70%	12.48%	6.24%
CTRA	73 Outperform	$19.32B	11.71	11.86%	3.45%	26.13%	31.42%
AR	67 Neutral	$10.49B	19.25	7.65%	―	17.05%	1028.81%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
OVV	60 Neutral	$9.47B	40.97	2.26%	3.17%	-8.07%	-87.88%

Texas Pacific Land Corporate Events

Texas Pacific Land Partners with Bolt Data & Energy

On December 17, 2025, Texas Pacific Land Corporation announced a strategic partnership with Bolt Data & Energy, Inc. to develop large-scale data center campuses on TPL-owned land in West Texas. This collaboration, aligned with Bolt’s vision of creating a world-leading data center network, is set to leverage abundant local energy resources while potentially transforming the region into a hub for AI compute infrastructure. As part of the agreement, Bolt raised $150 million, including a $50 million investment from TPL, granting TPL significant equity participation and rights to provide water for future projects.

Texas Pacific Land Announces Forward Stock Split

On November 5, 2025, Texas Pacific Land Corporation announced a three-for-one forward stock split of its common stock, which will become effective on December 22, 2025. This move is expected to increase the number of authorized shares significantly, with trading on a split-adjusted basis commencing on December 23, 2025, potentially impacting the company’s market positioning and shareholder value.

Texas Pacific Land Holds Annual Stockholders Meeting

On November 6, 2025, Texas Pacific Land Corporation conducted its Annual Meeting of Stockholders, where 18,923,012 shares were represented. The meeting included the election of nine board members, approval of executive compensation, ratification of Deloitte & Touche LLP as the accounting firm, and consideration of a proposal to lower the ownership threshold for calling special meetings. The proposal to reduce the ownership threshold was not approved, while other proposals were successfully passed.

Texas Pacific Land Reports Record Quarterly Revenues

On November 5, 2025, Texas Pacific Land Corporation announced record quarterly revenues and net income for its Water Services and Operations segment, highlighting strategic acquisitions and operational achievements. The company completed a $500 million revolving credit facility and a significant royalty interest acquisition in the Midland Basin, enhancing its portfolio and positioning for future growth despite broader commodity price challenges.

Texas Pacific Land Secures $500M Credit Facility

On October 23, 2025, Texas Pacific Land Corporation entered into a $500 million revolving credit facility agreement with Wells Fargo Bank and other lenders, maturing on October 23, 2029. The credit facility, which remains undrawn, enhances the company’s liquidity and positions it for growth opportunities, supported by strong backing from twelve financial institutions.