Texas Pacific Land (TPL) AI Stock Analysis

• Market Cap: $23.82B
• Dividend Yield: 0.56%
• Average Volume (3M): 146.81K
• Price to Earnings (P/E): 51.8
• Beta (1Y): 1.11
• Revenue Growth: 10.36%
• EPS Growth: 6.37%
• Country: US
• Employees: 111
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 5.24
• Shares Outstanding: 22,987,326
• 10 Day Avg. Volume: 169,261
• 30 Day Avg. Volume: 146,811
• PEG Ratio: 0.61
• Price to Book (P/B): 23.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.47
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 6.30
• Enterprise Value/Gross Profit: 26.92
• Enterprise Value/Ebitda: 7.84
• 1Y Price Target: $1,280.00
• Price Target Upside: 21.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $1,240.00 ▲(17.49%Upside)

Texas Pacific Land's overall score reflects its strong financial performance and positive earnings call, with record production and financial health as key strengths. However, technical analysis indicates bearish momentum, and valuation metrics suggest potential overvaluation. These factors, combined, provide a balanced view of strong fundamentals against market 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 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 robust financial health with strong revenue growth, high profitability margins, minimal debt, and impressive return on equity. The company's cash flow is strong, further supported by a solid balance sheet. Potential risks include revenue volatility due to industry fluctuations, but the current financial metrics indicate 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	727.66M	705.82M	631.60M	667.42M	450.96M	302.55M
Gross Profit	653.55M	634.54M	583.27M	634.53M	421.47M	269.95M
EBITDA	586.43M	564.30M	500.81M	577.68M	378.65M	231.66M
Net Income	460.19M	453.96M	405.64M	446.36M	269.98M	176.05M
Balance Sheet
Total Assets	1.35B	1.25B	1.16B	877.43M	764.06M	571.63M
Cash, Cash Equivalents and Short-Term Investments	460.38M	369.83M	725.17M	510.83M	428.24M	281.05M
Total Debt	0.00	453.00K	1.17M	1.96M	1.45M	2.82M
Total Liabilities	147.03M	115.56M	113.20M	104.54M	112.35M	86.45M
Stockholders Equity	1.21B	1.13B	1.04B	772.89M	651.71M	485.18M
Cash Flow
Free Cash Flow	64.61M	65.40M	378.29M	426.27M	249.62M	185.00M
Operating Cash Flow	500.15M	490.67M	418.29M	447.15M	265.16M	207.04M
Investing Cash Flow	-482.03M	-471.75M	-60.31M	-21.40M	-15.00M	-26.00M
Financing Cash Flow	-391.43M	-378.09M	-144.61M	-336.81M	-104.95M	-201.66M

Texas Pacific Land Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1055.44
• 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 1055.44 is below the 20-day moving average (MA) of 1090.06, below the 50-day MA of 1228.47, and below the 200-day MA of 1231.31, indicating a bearish trend. The MACD of -49.88 indicates Negative momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 32.22 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	77 Outperform	$40.84B	8.55	14.26%	2.84%	47.89%	-7.87%
EQT	76 Outperform	$34.86B	100.41	2.06%	1.08%	39.56%	-59.84%
CTRA	76 Outperform	$19.55B	14.95	9.40%	3.39%	10.33%	-0.13%
OXY	74 Outperform	$41.75B	17.17	9.43%	2.22%	1.35%	-33.30%
DVN	74 Outperform	$20.63B	7.31	20.88%	2.96%	12.06%	-16.37%
TPL	73 Outperform	$23.82B	51.82	39.52%	0.56%	10.36%	6.37%
Sector *	52 Neutral	C$2.91B	-0.88	-3.26%	6.37%	2.20%	-43.43%

Texas Pacific Land Corporate Events

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.