Texas Pacific Land (TPL) AI Stock Analysis

• Market Cap: $22.04B
• Dividend Yield: 1.71%
• Average Volume (3M): 144.57K
• Price to Earnings (P/E): 47.9
• Beta (1Y): 1.08
• Revenue Growth: 10.36%
• EPS Growth: 6.37%
• 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: 165,282
• 30 Day Avg. Volume: 144,572
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 41.25
• Enterprise Value/Gross Profit: 45.93
• Enterprise Value/Ebitda: 51.19
• 1Y Price Target: $1,280.00
• Price Target Upside: 33.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $1,046.00 ▲(9.09% Upside)

Texas Pacific Land's strong financial performance and positive earnings call outlook are significant strengths, contributing to a solid overall score. However, technical analysis indicates bearish trends, and the valuation suggests the stock may be overvalued. These factors moderate the overall score.

Texas Pacific Land Business Overview & Revenue Model

Company Description

Texas Pacific Land (TPL) is one of the largest landowners in the state of Texas, primarily operating in the land and resource management sector. The company is engaged in managing approximately 900,000 acres of land across 19 counties, with its core services focusing on land sales, leases, and royalties from oil and gas production. TPL also offers water sourcing, treatment, and disposal services to support the energy industry in the region.

How the Company Makes Money

Texas Pacific Land makes money through several key revenue streams. Firstly, it earns significant income from oil and gas royalties by leasing its land to exploration and production companies, who extract these resources. The company benefits from a percentage of the revenues generated from oil and gas sales on its land. Secondly, TPL generates revenue through land sales and leases, including surface leases for various uses like grazing or commercial activities. Additionally, TPL capitalizes on the growing demand for water solutions in the oil and gas sector by providing water sourcing, treatment, and disposal services. These services are critical for hydraulic fracturing and other energy production processes. The company's strategic location in the prolific Permian Basin and partnerships with major energy producers further enhance its earnings potential.

Texas Pacific Land Financial Statement Overview

Summary

Texas Pacific Land shows strong financial performance with excellent profitability and robust growth. The balance sheet is notably strong with minimal debt and high equity. Strong operational efficiency and cash flow growth further enhance the company's financial health.

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	634.54M	583.27M	634.53M	421.47M	269.95M
EBITDA	564.30M	500.81M	577.68M	378.65M	231.66M
Net Income	453.96M	405.64M	446.36M	269.98M	176.05M
Balance Sheet
Total Assets	1.25B	1.16B	877.43M	764.06M	571.63M
Cash, Cash Equivalents and Short-Term Investments	369.83M	725.17M	510.83M	428.24M	281.05M
Total Debt	453.00K	1.17M	1.96M	1.45M	2.82M
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: Negative
• Last Price: 958.81
• 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 958.81 is below the 20-day moving average (MA) of 984.95, below the 50-day MA of 1055.61, and below the 200-day MA of 1242.06, indicating a bearish trend. The MACD of -31.84 indicates Negative momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 43.49 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
FANG	76 Outperform	$42.56B	10.36	13.57%	3.60%	51.78%	-27.22%
CTRA	76 Outperform	$18.56B	11.66	11.42%	3.63%	10.33%	-0.13%
OXY	74 Outperform	$42.40B	17.44	9.43%	2.12%	1.35%	-33.30%
DVN	72 Outperform	$20.75B	7.27	20.60%	3.53%	12.06%	-16.37%
TPL	70 Outperform	$22.04B	47.94	39.52%	1.71%	10.36%	6.37%
EQT	70 Outperform	$32.26B	27.90	6.26%	1.20%	59.12%	12.12%
Sector *	56 Neutral	C$4.11B	-0.17	0.41%	6.51%	5.45%	-66.94%

Texas Pacific Land Corporate Events

Texas Pacific Land Reports Record Q2 2025 Results

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.

The most recent analyst rating on (TPL) stock is a Buy with a $917.00 price target. To see the full list of analyst forecasts on Texas Pacific Land stock, see the TPL Stock Forecast page.

Texas Pacific Land Reports Record Q1 2025 Results

On May 7, 2025, Texas Pacific Land Corporation announced its first-quarter 2025 financial results, highlighting record oil and gas royalty production and water services revenue. The company reported a net income of $120.7 million and total revenues of $196.0 million, driven by increased oil and gas royalty revenue and water sales. Despite economic volatility, TPL’s strong financial position and business model allow it to remain resilient and opportunistic.