A Business at a Glance
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Texas Pacific Land Corp
TPL
$86.9B
Mkt Cap
$419.44
-1.44%
Texas Pacific Land Corp (TPL) has a current P/E ratio of 60.2, compared to its historical median P/E of 34.4. The stock is currently considered Expensive based on its historical valuation range.
Texas Pacific Land Corp (TPL) has a 5-year average return on invested capital (ROIC) of 46.7%. This indicates strong capital allocation and a potential competitive advantage.
Texas Pacific Land Corp (TPL) has a market capitalization of $28.9B. It is classified as a large-cap stock.
Yes, Texas Pacific Land Corp (TPL) pays a dividend with a trailing twelve-month yield of 0.53%. The company also returns capital through share buybacks, with a buyback yield of 0.03%.
Based on historical P/E analysis, Texas Pacific Land Corp (TPL) appears expensive. The current P/E of 60.2 is 75% above its historical median of 34.4. The estimated fair value CAGR (P/E method) is 11.0%.
Texas Pacific Land Corp (TPL) operates in the Oil Royalty Traders industry, within the Financials sector.
Texas Pacific Land Corp (TPL) reported annual revenue of $798 million in its most recent fiscal year, based on SEC EDGAR filings.
Texas Pacific Land Corporation is one of the largest landowners in Texas with approximately 882,000 surface acres and approximately 224,000 net royalty acres of oil and gas interests, principally concentrated in the Permian Basin. The company operates through two segments: Land and Resource Management, which generates revenue from oil and gas royalties, easements (pipelines, power lines, utilities), commercial leases, material sales (caliche and sand), land sales, and emerging renewable energy and data center opportunities; and Water Services and Operations, which provides sourced water, treated produced water, and saltwater disposal services to oil and gas operators. The company is not an oil and gas producer but rather benefits from royalty interests and surface-use fees throughout the development lifecycle—from infrastructure construction through drilling, completion, and production phases. The business model emphasizes high cash flow margins and relatively low ongoing capital expenditure requirements, with revenue streams that are largely decoupled from operational risk since the company does not bear well development or operating expenses. The company's competitive moat derives from its vast, contiguous land position and commercial expertise in maximizing diverse revenue opportunities across its legacy assets, which few neighboring landowners can match in scale or capability.
【Data center and renewable expansion】 Management expects multiple multi-gigawatt energy campuses to be viable on TPL's acreage, with the December 2025 strategic investment in Bolt Data & Energy representing a pathway to develop large-scale data center infrastructure. The company is investing approximately $20 million to evaluate waste heat capture and data center cooling co-location potential at its Orla desalination facility, which is expected to commence produced water operations in the coming months and could provide a sustainable solution for the Permian's growing produced water volumes. With an estimated 19.5 net wells in the pipeline (5.6 permitted, 9.8 drilled-but-uncompleted, and 4.0 completed-but-not-producing), management does not anticipate basin-wide production declines given current oil prices and expects the industry to ramp rig and frack activity over coming quarters if elevated oil prices persist. Capital allocation priorities for 2026 focus on water services infrastructure improvements and investigating co-location opportunities, with total anticipated capital expenditures of $65–75 million.
| Metric | Target | Period |
|---|---|---|
| Capital expenditures | $65–75 million | FY2026 |
| Waste heat capture and data center co-location investment | $20 million | FY2026 |
Capital expenditures (FY2026): “For fiscal year 2026, we anticipate capital expenditures to be approximately $65 million-$75 million”
Waste heat capture and data center co-location investment (FY2026): “as Ty mentioned, $20 million will be allocated towards investigating waste heat capture and data center and power generation co-location potential for our freeze desalination facility”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 839M | 798M | 706M | 632M | 667M | 451M |
| Net Income | 504M | 481M | 454M | 406M | 446M | 270M |
| EPS | $14.19 | $2.32 | $2.19 | $1.96 | $6.44 | $3.87 |
| Free Cash Flow | 515M | 510M | 489M | 398M | 428M | 249M |
| ROIC | 37.6% | 37.2% | 41.7% | 44.7% | 62.7% | 47.5% |
| Gross Margin | - | 85.1% | 84.8% | 86.6% | 89.9% | 86.5% |
| Debt/Equity | 0.00 | 0.11 | 0.10 | 0.11 | 0.14 | 0.17 |
| Dividends/Share | $2.21 | $0.71 | $1.68 | $0.48 | $3.57 | $1.22 |
| Operating Income | 624M | 592M | 539M | 486M | 562M | 362M |
| Operating Margin | 74.4% | 74.2% | 76.4% | 77.0% | 84.3% | 80.4% |
| ROE | 32.4% | 37.2% | 41.7% | 44.7% | 62.7% | 47.5% |
| Shares Outstanding | 69M | 207M | 207M | 207M | 69M | 70M |
| Metric | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 300M | 490M | 303M | 451M | 667M | 632M | 706M | 798M | 839M |
| Gross Margin | 89.3% | 85.2% | 79.8% | 86.5% | 89.9% | 86.6% | 84.8% | 85.1% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 4.7M | 9.5M | 9.8M | 12M | 22M | 46M | 34M | 24M | 26M |
| EBIT | 261M | 400M | 217M | 362M | 562M | 486M | 539M | 592M | 624M |
| Op. Margin | 86.9% | 81.5% | 71.8% | 80.4% | 84.3% | 77.0% | 76.4% | 74.2% | 74.4% |
| Net Income | 210M | 319M | 176M | 270M | 446M | 406M | 454M | 481M | 504M |
| Net Margin | 69.9% | 65.0% | 58.2% | 59.9% | 66.9% | 64.2% | 64.3% | 60.3% | 60.0% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||
| ROIC | N/A | 84.2% | 35.3% | 47.5% | 62.7% | 44.7% | 41.7% | 37.2% | 37.6% |
| ROE | N/A | 84.2% | 35.3% | 47.5% | 62.7% | 44.7% | 41.7% | 37.2% | 32.4% |
| ROA | N/A | 106.5% | 30.1% | 40.4% | 54.4% | 39.9% | 37.8% | 33.5% | 28.8% |
| Cash Flow | |||||||||
| Op. Cash Flow | 195M | 343M | 207M | 265M | 447M | 418M | 491M | 546M | 551M |
| Free Cash Flow | 148M | 311M | 202M | 249M | 428M | 398M | 489M | 510M | 515M |
| Owner Earnings | 193M | 334M | 193M | 249M | 423M | 393M | 453M | 468M | 471M |
| CapEx | 48M | 32M | 5.1M | 16M | 19M | 20M | 1.5M | 36M | 36M |
| Maint. CapEx | 2.6M | 8.9M | 14M | 16M | 15M | 15M | 25M | 63M | 65M |
| Growth CapEx | 45M | 23M | 0 | 158K | 3.6M | 5.6M | 0 | 0 | 0 |
| D&A | 2.6M | 8.9M | 14M | 16M | 15M | 15M | 25M | 63M | 65M |
| CapEx/OCF | N/A | 21.8% | 2.5% | 6.2% | 4.2% | 4.9% | 0.3% | 6.6% | 6.5% |
| Capital Allocation | |||||||||
| Dividends Paid | 32M | 47M | 202M | 85M | 247M | 100M | 347M | 148M | 152M |
| Dividend Yield | N/A | 0.9% | 4.9% | 0.9% | 2.0% | 0.3% | 0.6% | 0.2% | 0.5% |
| Share Buybacks | 38M | 4.4M | 0 | 20M | 88M | 43M | 29M | 8.4M | 8.3M |
| Buyback Yield | 0.0% | 0.1% | N/A | 0.2% | 0.5% | 0.4% | 0.1% | 0.0% | 0.0% |
| Stock-Based Comp | 0 | 0 | 0 | 28K | 8.4M | 10M | 12M | 15M | 16M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.1M | 5.1M |
| Balance Sheet | |||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -248M |
| Cash & Equiv. | 123M | 304M | 281M | 428M | 511M | 725M | 370M | 145M | 248M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | N/A | 0.17 | 0.18 | 0.17 | 0.14 | 0.11 | 0.10 | 0.11 | 0.00 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 858.2 | 858.2 |
| Equity | N/A | 512M | 485M | 652M | 773M | 1.0B | 1.1B | 1.5B | 1.6B |
| Total Assets | N/A | 598M | 572M | 764M | 877M | 1.2B | 1.2B | 1.6B | 1.8B |
| Total Liabilities | N/A | 86M | 86M | 112M | 105M | 113M | 116M | 164M | 196M |
| Intangibles | N/A | N/A | N/A | N/A | 0 | 21M | 35M | 33M | 32M |
| Retained Earnings | N/A | 514M | 488M | 668M | 866M | 1.2B | 1.3B | 1.6B | 1.7B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||
| EPS | 2.99 | 4.57 | 2.52 | 3.87 | 6.44 | 1.96 | 2.19 | 2.32 | 14.19 |
| Owner EPS | 2.75 | 4.78 | 2.76 | 3.57 | 6.11 | 1.90 | 2.19 | 2.26 | 6.83 |
| Book Value | N/A | 7.34 | 6.95 | 9.34 | 11.16 | 5.04 | 5.46 | 7.04 | 22.56 |
| Cash Flow/Share | 2.79 | 4.91 | 2.97 | 3.80 | 6.46 | 2.02 | 2.37 | 2.63 | 8.24 |
| Dividends/Share | 0.45 | 0.67 | 2.89 | 1.22 | 3.57 | 0.48 | 1.68 | 0.71 | 2.21 |
| Shares Out. | 70.1M | 69.8M | 69.8M | 69.8M | 69.3M | 207.1M | 207.3M | 207.2M | 69.0M |
| Valuation | |||||||||
| P/E Ratio | N/A | 17.5 | 28.7 | 34.4 | 39.1 | 29.5 | 57.7 | 41.2 | 29.6 |
| P/FCF | N/A | 17.9 | 25.0 | 37.3 | 40.6 | 89.9 | 160.6 | 116.7 | 56.1 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | 47.2 | 33.0 | 45.9 |
| Price/Book | N/A | 10.9 | 10.4 | 14.2 | 22.6 | 11.5 | 23.1 | 13.6 | 18.6 |
| Price/Sales | N/A | 10.2 | 13.7 | 21.5 | 18.7 | 19.9 | 25.7 | 31.7 | 34.5 |
| FCF Yield | N/A | 5.6% | 4.0% | 2.7% | 2.5% | 3.3% | 1.9% | 2.6% | 1.8% |
| Market Cap | 0 | 5.6B | 5.1B | 9.3B | 17.5B | 12.0B | 26.2B | 19.8B | 28.9B |
| Avg. Price | 0.00 | 71.67 | 59.30 | 139.14 | 179.50 | 181.87 | 262.47 | 366.26 | 419.44 |
| Year-End Price | 0.00 | 79.76 | 72.42 | 132.95 | 251.20 | 172.75 | 378.94 | 287.21 | 419.44 |
Texas Pacific Land Corp passes 4 of 9 quality checks, suggesting mixed fundamentals.
Texas Pacific Land Corp trades at 60.2x trailing earnings, compared to its 15-year median P/E of 34.4x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 56.8x vs a median of 37.3x. The company's 5-year average ROIC is 46.7% with a gross margin of 86.6%. Total shareholder yield (dividends) is 0.6%. At current prices, the estimated annualized return to fair value is +13.6%.
Texas Pacific Land Corp (TPL) has a net profit margin of 60.3%. This is a strong margin indicating high profitability.
Texas Pacific Land Corp (TPL) generated $510 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Texas Pacific Land Corp (TPL) has a debt-to-equity ratio of 0.11. This indicates a conservatively financed balance sheet.
Texas Pacific Land Corp (TPL) reported earnings per share (EPS) of $2.32 in its most recent fiscal year.
Texas Pacific Land Corp (TPL) has a return on equity (ROE) of 37.2%. This indicates the company generates strong returns for shareholders.
Texas Pacific Land Corp (TPL) has a 5-year average gross margin of 86.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 8 years of financial data for Texas Pacific Land Corp (TPL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Texas Pacific Land Corp (TPL) has a book value per share of $7.04, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects multiple multi-gigawatt energy campuses to be viable on TPL's acreage, with the December 2025 strategic investment in Bolt Data & Energy representing a pathway to develop large-scale data center infrastructure. The company is investing approximately $20 million to evaluate waste heat capture and data center cooling co-location potential at its Orla desalination facility, which is expected to commence produced water operations in the coming months and could provide a sustainable solution for the Permian's growing produced water volumes. With an estimated 19.5 net wells in the pipeline (5.6 permitted, 9.8 drilled-but-uncompleted, and 4.0 completed-but-not-producing), management does not anticipate basin-wide production declines given current oil prices and expects the industry to ramp rig and frack activity over coming quarters if elevated oil prices persist. Capital allocation priorities for 2026 focus on water services infrastructure improvements and investigating co-location opportunities, with total anticipated capital expenditures of $65–75 million.
Based on recent SEC filings and earnings calls, Texas Pacific Land Corp (TPL) has provided the following forward guidance: Capital expenditures: $65–75 million (FY2026); Waste heat capture and data center co-location investment: $20 million (FY2026).