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Texas Pacific Land (TPL)
NYSE:TPL
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Texas Pacific Land
(NYSE:TPL)
Rating:72Outperform
Price Target:
$988.00
▲(8.73% Upside)
Texas Pacific Land (TPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.94B
Dividend Yield1.76%
Average Volume (3M)160.09K
Price to Earnings (P/E)45.4
Beta (1Y)1.15
Revenue Growth10.69%
EPS Growth3.27%
CountryUS
Employees111
SectorEnergy
Sector Strength56
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)5.05
Shares Outstanding22,987,326
10 Day Avg. Volume145,030
30 Day Avg. Volume160,088
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue31.99
Enterprise Value/Gross Profit35.71
Enterprise Value/Ebitda39.18
Forecast
1Y Price Target
$1,280.00Price Target Upside40.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Texas Pacific Land Business Overview & Revenue Model
Company DescriptionTexas Pacific Land (TPL) is a diversified land and resource company headquartered in Texas. It operates primarily in the acquisition, management, and leasing of land and mineral interests, particularly in the prolific Permian Basin. TPL's core products include both surface and subsurface land rights, as well as water and other resource management services, catering to the oil and gas industry, renewable energy developers, and agricultural operations.
How the Company Makes MoneyTexas 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in key revenue areas and strategic advancements in technology and infrastructure, despite facing challenges from commodity price fluctuations and reduced water sales. The company's ability to set records and maintain strong financial metrics indicates resilience and strategic foresight.Q2-2025 Updates
Positive Updates
Record Performance in Key Revenue Streams
Despite a challenging commodity price environment, TPL set quarterly revenue records for produced water royalties and easements and other surface-related income. Oil and gas royalty production reached a company record of 33,200 barrels of oil equivalent per day.
Strong Financial Metrics
The company achieved a second quarter adjusted EBITDA margin of 89% and a free cash flow of $130 million, representing a 12% increase year-over-year.
Innovation and Efficiency in the Permian
TPL is leveraging new technologies like lightweight proppants and horseshoe wells to enhance recovery and extend the basin's longevity, maintaining a strong position in a key global oil production area.
Desalination Facility Progress
TPL has made significant progress on its Phase 2b desalination facility, expected to begin operations by year-end, marking a step towards providing produced water solutions in the Permian.
Negative Updates
Commodity Price Volatility
Average WTI Cushing oil price during the quarter was $64 per barrel, the lowest since early 2021, affecting the broader industry sentiment and leading to reduced activity among operators.
Decline in Water Sales
Water sales were down $13 million sequential quarter-over-quarter, primarily due to lower oil prices and reduced activity by operator customers.
Company Guidance
In the Texas Pacific Land Corporation's second quarter 2025 earnings call, the company reported a record performance across major revenue streams despite challenging conditions. TPL achieved a quarterly revenue of $188 million, with an adjusted EBITDA of $166 million and an 89% margin. The company set records in produced water royalties at $31 million and easements and other surface-related income (SLEM) at $36 million. Despite a slump in oil prices, with WTI Cushing averaging $64 per barrel, TPL maintained robust oil and gas royalty production at 33,200 barrels of oil equivalent per day, a 33% year-over-year increase. The company also highlighted ongoing innovations and strategies, such as the development of a 10,000 barrel per day desalination facility and efficient cash flow conversion, contributing to a free cash flow of $130 million, a 12% year-over-year increase. The call also addressed broader industry trends and TPL's strategic positioning within the Permian Basin, emphasizing its potential for long-term growth amidst current commodity price fluctuations.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.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 | 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
Neutral
908.70
Price Trends
977.03
Negative
1112.81
Negative
1223.31
Negative
Market Momentum
-22.87
Negative
45.35
Neutral
72.42
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 908.7 is above the 20-day moving average (MA) of 904.20, below the 50-day MA of 977.03, and below the 200-day MA of 1223.31, indicating a neutral trend. The MACD of -22.87 indicates Negative momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 72.42 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.36B | 8.01 | 20.60% | 3.21% | 10.98% | -19.25% | |
75 Outperform | $11.09B | 9.19 | 12.86% | 4.66% | 16.37% | 21.22% | |
72 Outperform | $20.94B | 45.40 | 37.01% | 1.76% | 10.69% | 3.27% | |
70 Outperform | $10.52B | 18.25 | 5.75% | 2.89% | -12.92% | -68.16% | |
69 Neutral | $18.24B | 11.43 | 11.42% | 3.60% | 16.56% | 20.21% | |
67 Neutral | $9.62B | 21.69 | 6.31% | ― | 11.65% | 415.90% | |
65 Neutral | $15.26B | 7.31 | 3.02% | 5.32% | 4.27% | -62.52% |
* Energy Sector Average
Performance Comparison
TPL
Texas Pacific Land
908.70
42.19
4.87%
CTRA
Coterra Energy
24.14
0.54
2.29%
DVN
Devon Energy
35.56
-8.04
-18.44%
OVV
Ovintiv
41.47
-1.04
-2.45%
AR
Antero Resources
31.30
4.40
16.36%
PR
Permian Resources
14.15
0.13
0.93%
Texas Pacific Land Corporate Events
Executive/Board ChangesShareholder Meetings
Texas Pacific Land Director Eric L. Oliver Steps Down
Neutral
Aug 27, 2025
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.
Delistings and Listing ChangesBusiness Operations and Strategy
Texas Pacific Land Announces Dual Listing on NYSE Texas
Positive
Aug 14, 2025
On August 14, 2025, Texas Pacific Land Corporation announced the dual listing of its common stock on NYSE Texas, while maintaining its primary listing on the New York Stock Exchange. This move strengthens TPL’s ties to Texas, where its operations and assets are primarily based, and highlights its longstanding presence in the region as a founding member of the newly launched exchange.
Business Operations and StrategyRegulatory Filings and Compliance
Texas Pacific Land Introduces Proxy Access for Shareholders
Neutral
Aug 8, 2025
On August 5, 2025, Texas Pacific Land Corporation’s Board of Directors approved the Fourth Amended and Restated Bylaws, which introduced a proxy access right for stockholders. This change allows stockholders who meet certain ownership and procedural requirements to nominate directors, potentially impacting the company’s governance and shareholder engagement.
Business Operations and StrategyFinancial Disclosures
Texas Pacific Land Reports Record Q2 2025 Results
Positive
Aug 6, 2025
On August 6, 2025, Texas Pacific Land Corporation announced record financial results for the second quarter of 2025, highlighting significant achievements in oil and gas royalty production, easements, and produced water royalties. The company also began constructing a produced water desalination facility in Orla, Texas, expected to be operational by late 2025, reflecting its strategic focus on water management in the Permian Basin. Despite a decrease in total revenues compared to the previous quarter, TPL’s financial resilience amid commodity price volatility was emphasized, with substantial revenue potential identified in its water management initiatives.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.