Texas Pacific Land Corporation (TPL)
Energy · $25.1B market cap · SEC CIK 0001811074
fundamentals score out of 100
Next reports on Nov 3, 2026, with analysts expecting $2.38 in earnings per share.
The case for TPL
- Revenue up 20.8% on the year.
- Earns 36% back on shareholder equity.
- 60% of revenue drops through to net profit.
- Has compounded revenue at 21.4% a year over five years.
- Carries essentially no debt.
- Gross margin of 93% absorbs cost shocks.
The case against
- Pricey at 46.4× earnings, against a long-run market average nearer 20×.
- Priced at 28.0× sales, which leaves no room for a stumble.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Energy companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 13 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 78 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 94 |
| Momentumhow the price has behaved lately | 54 |
| Stabilityhow violently it moves, what it owes and what it pays you | 59 |
- Each factor except momentum is half fixed thresholds, half rank among the 21 Energy companies.
Key numbers
| Price / earnings | 46.4× |
|---|---|
| Price / book | 18.05× |
| Price / sales | 28.0× |
| Revenue growth (YoY) | +20.8% |
| EPS growth (YoY) | +17.3% |
| Gross margin | 93% |
| Operating margin | 75% |
| Net margin | 60% |
| Return on equity | 36% |
| Debt / equity | 0.00× |
| Current ratio | 4.55 |
| Dividend yield | 0.79% |
| Beta | 0.60 |
| 52-week range | $269.23 – $547.20 |
| Position in that range | 31% of the way up |
| 3-month return | +3.3% |
| 1-year return | +25.7% |
Five years of financials, as filed
Pulled from Texas Pacific Land Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $798M | $706M | $632M | $667M | $451M |
| Operating income | $592M | $539M | $486M | $562M | $362M |
| Net income | $481M | $454M | $406M | $446M | $270M |
| Operating cash flow | $546M | $491M | $418M | $447M | $265M |
| Capital expenditure | — | — | — | $19.0M | $16.4M |
| Total assets | $1.6B | $1.2B | $1.2B | $877M | $764M |
| Total liabilities | $164M | $116M | $113M | $105M | $112M |
| Shareholder equity | $1.5B | $1.1B | $1.0B | $773M | $652M |
| Cash | $145M | $370M | $725M | $511M | $428M |
| Free cash flow | — | — | — | $428M | $249M |
| Operating margin | 74.2% | 76.4% | 77.0% | 84.3% | 80.4% |
| Net margin | 60.3% | 64.3% | 64.2% | 66.9% | 59.9% |
| Diluted shares | 69.0M | 69.1M | 69.2M | 69.5M | 69.8M |
Share count is essentially flat over 4 years. Counts are restated for stock splits so the years compare.
What Texas Pacific Land Corporation says it does
Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as "TPL," the "Company," "our," "we," or "us") is a Delaware Corporation and one of the largest landowners in the State of Texas with approximately 882,000 surface acres of land, principally concentrated in the Permian Basin. Additionally, we 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 33,000 additional net royalty acres (normalized to 1/8th) ("NRA"), for a collective total of approximately 224,000 NRA, principally concentrated in the Permian Basin. The Company was originally organized as Texas Pacific Land Trust (the "Trust") under a Declaration of Trust, dated February 1, 1888 (the "Declaration of Trust"), to receive and hold title to extensive tracts of land in the State…
Risk factors TPL lists in its 10-K
- Our oil and gas royalties are dependent upon the market prices of oil and gas which fluctuate
- We are not an oil and gas producer. Our revenues from oil and gas royalties are subject to the actions of others
- The loss of key members of our management team or difficulty attracting and retaining experienced technical personnel could reduce our competitiveness and prospects for future success
- Demand for TPWR’s products and services is substantially dependent on the levels of expenditures by our customers
- We face the risks of doing business in a new and rapidly evolving market for TPWR and may not be able to
- address such risks and achieve acceptable levels of success or profits
- The impact of government regulation on TPWR could adversely affect our business
- Our produced water desalination project creates risks related to invested capital, environmental exposure and our reputation
- Our revenues from the sale of land are subject to substantial fluctuation. Land sales are subject to many factors that are beyond our control
- Our Credit Facility may limit our operating flexibility or otherwise adversely affect our business
- We may make minority investments, engage in joint ventures or make other strategic alliances with third parties that subject us to risks and uncertainties outside of our control
- The market price of our Common Stock may fluctuate significantly
- We may not continue to pay dividends or to pay dividends at the same rate as previously paid
- We will evaluate whether to repurchase our outstanding Common Stock in the future and we cannot guarantee the timing or amount of share repurchases, if any