Texas Pacific Land Corporation (TPL) Stock

Texas Pacific Land Corporation (TPL) is a Financials stock trading at $371.80 (as of 2026-09-15), with a market capitalization of $25.64B and a trailing P/E of 47.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Texas Pacific Land Corporation manages land and resource interests, including large acreages under ownership and oil and gas royalty interests, and earns revenue from activities such as easements, commercial leases, and related land-related transactions. Its water services and operations segment provides water-related sourcing, gathering/treatment, infrastructure, disposal, tracking/analytics, and well testing for operators in the Permian Basin.

Understand Texas Pacific Land Corporation: how it makes money

Texas Pacific Land owns roughly 880,000 acres in the Permian Basin and earns perpetual oil and gas royalties, water-sale fees, and easement income from operators drilling on its land. It never drills a well; it monetizes the dirt and the water, so revenue tracks Permian production times commodity prices.

Every barrel produced on TPL's acres generates a royalty check with near-zero capex, so the 77% operating margin is structural rather than cyclical: the company is a toll bridge on Permian production.

Revenue by segment (latest quarter)
Land and Resource Management$0.1B
Water Services and Operations$0.1B

Business quality (Strong): Unusually high-quality asset-light royalty-and-water business (77% operating margin, 32% ROE, no debt), but the 51.3x multiple prices in a very long stretch of Permian growth.

Valuation: At 51× earnings, TPL trades 43% above the Trading average (36×).

Bull case

  • Self-funding royalty engine: Management highlighted that TPL sustained 21% revenue growth to $200 million without tapping debt or equity markets, a direct consequence of the low-capex royalty model that needs almost no capital to collect on owned land.
  • Data center land optionality: Management flagged that hyperscale data-center projects in the Permian could become a material revenue stream through land, water access, and energy interconnection on its 880,000-acre base, adding a second growth vector beyond oilfield cyclicality.
  • Nearly 80% operating margin: The 77% operating margin on $200 million of quarterly revenue means roughly $154 million flows to operating profit each quarter, a fortress level that reflects the minimal capex required to collect royalties on land the company already owns.

Bear case

  • Rig-count decline caps growth: Management acknowledged that Permian rig activity fell materially during 2025; with oil and gas royalty revenue at $120 million (60% of total), a continued drawdown in drilling directly shrinks the production that feeds TPL's core royalty check.
  • Commodity price sensitivity: Management noted that lower realized oil prices partially offset full-year operating gains, meaning the 21% revenue growth rate could compress or reverse if headline commodity prices soften further.
  • 51x multiple prices in perfection: TPL trades at 51.3x earnings versus a 35.9x Trading-industry average (a 43% premium), leaving little margin for error if Permian drilling slows or commodity prices dip; the 'Expensive' valuation verdict reflects how much future growth is already embedded in the price.
Valuation — source: SEC EDGAR (first-party)
Price$371.80
Market Cap$25.64B
P/E Ratio47.4
EV / EBITDA34.3
Price / Book15.33
Price / Sales28.57
Dividend Yield0.6%
DCF Value (model)$164.45
DCF Upside vs Price-55.8%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$798.19M
Net Margin60.3%
Return on Equity32.4%
Current Ratio4.55
Revenue Growth (YoY)31.2%
EPS Growth (YoY)-55.8%
Financial Health — source: SEC EDGAR
Altman Z-Score96.82 (safe)
Valuation vs Sector & Industry
Stock P/E47.4
Sector P/E (Financials)15.0
Industry P/E (Trading)34.1
vs Sector216.5%
vs Industry39.1%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderHORIZON KINETICS ASSET MANAGEMENT LLC ($4.29B)
Institutional Holders Tracked10
Congressional Trades (recent)3
Company
SectorFinancials
IndustryTrading
CEOTyler Glover
Employees111
CountryUS
IPO Date1980-03-17

Texas Pacific Land Corporation earnings call transcripts

  • TPL Q1 FY26 earnings call transcript (reported 2026-05-06) · analysis
  • TPL Q4 FY25 earnings call transcript (reported 2026-02-18) · analysis
  • TPL Q2 FY25 earnings call transcript (reported 2025-08-06) · analysis
  • TPL Q1 FY25 earnings call transcript (reported 2025-05-07) · analysis
  • TPL Q2 FY20 earnings call transcript (reported 2020-07-30) · analysis

All TPL earnings calls

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TPL earnings history · TPL institutional & insider holders · TPL KPIs & operating metrics · TPL financials · TPL filings, presentations & press releases · TPL investor presentations & press releases · TPL SEC filings · TPL peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-15.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.