Texas Pacific Land (TPL) AI Stock Analysis

• Market Cap: $21.23B
• Dividend Yield: 0.7%
• Average Volume (3M): 131.48K
• Price to Earnings (P/E): 46.0
• Beta (1Y): 1.17
• Revenue Growth: 10.69%
• EPS Growth: 3.27%
• Country: US
• Employees: 111
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 5.05
• Shares Outstanding: 22,987,326
• 10 Day Avg. Volume: 116,709
• 30 Day Avg. Volume: 131,483
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 31.99
• Enterprise Value/Gross Profit: 35.71
• Enterprise Value/Ebitda: 39.18
• 1Y Price Target: $1,280.00
• Price Target Upside: 40.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $1,019.00 ▲(11.61% Upside)

Texas Pacific Land's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. However, the technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation, which tempers the overall score.

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 several key streams: leasing land for oil and gas exploration and production, which includes charging companies for drilling and extracting resources; collecting royalties from mineral rights when oil and gas are produced; and providing water services to energy companies, including sourcing, transporting, and selling water for hydraulic fracturing. The company also engages in land sales and purchases, capitalizing on the value of its extensive land holdings. Significant partnerships with energy companies and a strong position in a high-demand area like the Permian Basin further enhance its revenue potential, alongside fluctuations in commodity prices that can impact royalty income.

Texas Pacific Land Financial Statement Overview

Summary

Texas Pacific Land shows 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.

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	742.87M	705.82M	631.60M	667.42M	450.96M	302.55M
Gross Profit	665.53M	634.54M	583.27M	634.53M	421.47M	269.95M
EBITDA	606.57M	564.30M	500.81M	577.68M	378.65M	231.66M
Net Income	461.75M	453.96M	405.64M	446.36M	269.98M	176.05M
Balance Sheet
Total Assets	1.40B	1.25B	1.16B	877.43M	764.06M	571.63M
Cash, Cash Equivalents and Short-Term Investments	543.93M	369.83M	725.17M	510.83M	428.24M	281.05M
Total Debt	0.00	453.00K	1.17M	1.96M	1.45M	2.03M
Total Liabilities	115.72M	115.56M	113.20M	104.54M	112.35M	86.45M
Stockholders Equity	1.29B	1.13B	1.04B	772.89M	651.71M	485.18M
Cash Flow
Free Cash Flow	93.84M	65.40M	378.29M	426.27M	249.62M	185.00M
Operating Cash Flow	522.76M	490.67M	418.29M	447.15M	265.16M	207.04M
Investing Cash Flow	-478.55M	-471.75M	-60.31M	-21.40M	-15.00M	-26.00M
Financing Cash Flow	-394.99M	-378.09M	-144.61M	-336.81M	-104.95M	-201.66M

Texas Pacific Land Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 913.00
• 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 Negative. The current price of 913 is below the 20-day moving average (MA) of 915.93, below the 50-day MA of 936.64, and below the 200-day MA of 1184.83, indicating a bearish trend. The MACD of -1.89 indicates Negative momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 52.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPL.

Texas Pacific Land Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DVN	76 Outperform	22.48B	7.83	18.88%	2.65%	10.98%	-19.25%
PR	74 Outperform	11.29B	8.70	12.05%	4.42%	16.37%	21.22%
TPL	73 Outperform	$21.23B	46.02	37.01%	0.70%	10.69%	3.27%
CTRA	72 Outperform	18.61B	11.77	10.83%	3.57%	16.56%	20.21%
OVV	70 Outperform	10.79B	18.74	5.73%	2.86%	-12.92%	-68.16%
AR	67 Neutral	9.97B	22.47	0.00%	―	11.65%	415.90%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Texas Pacific Land Corporate Events

Texas Pacific Land Director Eric L. Oliver Steps Down

On August 26, 2025, Texas Pacific Land Corporation announced that Eric L. Oliver, a member of its Board of Directors, decided not to stand for reelection at the 2025 annual meeting of stockholders. His decision was not due to any disagreements with the company. The Board expressed gratitude for his contributions and decided to reduce the number of directors from ten to nine, effective at the annual meeting.

The most recent analyst rating on (TPL) stock is a Buy with a $988.00 price target. To see the full list of analyst forecasts on Texas Pacific Land stock, see the TPL Stock Forecast page.