Business 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.
Business History
Generated: Jun 7, 2026 5:18pmPrice Overview
Last updated: Jun 7, 2026 5:16pm (19d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 6.98
Total Equity: $1.46B
Shares: 69,027,492
Total Debt: $16.18M
Cash: $144.81M
EBITDA: $655.46M
Total Debt: $16.18M
Cash: $144.81M
Revenue: $798.19M
Revenue: $798.19M
Revenue: $798.19M
Total Equity: $1.46B
Tax Rate: 21.1%
Equity: $1.46B
Total Debt: $16.18M
Cash: $144.81M
Current Liabilities: $72.60M
Long-Term Debt: $16.18M
Total Debt: $16.18M
Total Equity: $1.46B
Shares: 69,027,492
Shares: 69,027,492
CapEx: -$59.53M
Shares: 69,027,492
Stock Price: $389.79
Net Income: $481.38M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 7, 2026 5:23pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $451.0M | $667.4M | $631.6M | $705.8M | $798.2M |
| Cost of Revenue | $29.5M | $32.9M | $48.3M | $71.3M | $0 |
| Gross Profit | $421.5M | $634.5M | $583.3M | $634.5M | $798.2M |
| Operating Expenses | $59.1M | $72.2M | $97.2M | $95.4M | $206.0M |
| Operating Income | $362.4M | $562.3M | $486.1M | $539.1M | $592.2M |
| Net Income | $270.0M | $446.4M | $405.6M | $454.0M | $481.4M |
| EBITDA | $378.7M | $577.7M | $500.8M | $564.3M | $655.5M |
| EPS | $3.87 | $6.42 | $5.87 | $6.58 | $6.98 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 7, 2026 5:19pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $428.2M | $510.8M | $725.2M | $369.8M | $144.8M |
| Total Current Assets | $526.5M | $633.4M | $862.5M | $503.4M | $319.3M |
| Total Assets | $764.1M | $877.4M | $1.2B | $1.2B | $1.6B |
| Current Liabilities | $67.5M | $56.8M | $63.1M | $60.4M | $72.6M |
| Long-Term Debt | $0 | $0 | $0 | $0 | $16.2M |
| Total Liabilities | $112.4M | $104.5M | $113.2M | $115.6M | $164.4M |
| Total Equity | $651.7M | $772.9M | $1.0B | $1.1B | $1.5B |
| Retained Earnings | $668.0M | $866.1M | $1.2B | $1.3B | $1.6B |
Cash Flow (Annual)
Last updated: Jun 7, 2026 5:23pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $265.2M | $447.1M | $418.3M | $490.7M | $545.9M |
| Capital Expenditure | -$15.5M | -$19.2M | -$15.0M | -$29.7M | -$59.5M |
| Free Cash Flow | $249.6M | $427.9M | $403.3M | $461.0M | $486.4M |
| Acquisitions (net) | $0 | $0 | $0 | -$45.0M | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$19.7M | -$89.5M | -$44.6M | -$30.8M | -$23.2M |
| Net Change in Cash | $145.2M | $88.9M | $213.4M | -$359.2M | -$226.0M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 5:16pm (19d ago)| Metric | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|
| Revenue |
$794.0M $794.0M – $794.0M
|
$1.0B $1.0B – $1.0B
|
$1.1B $1.1B – $1.1B
|
$1.3B $1.3B – $1.3B
|
| EBITDA |
$654.1M $654.1M – $654.1M
|
$851.4M $851.4M – $851.4M
|
$923.0M $923.0M – $923.0M
|
$1.0B $1.0B – $1.0B
|
| Net Income |
$481.9M $481.9M – $481.9M
|
$632.9M $632.9M – $632.9M
|
$696.0M $696.0M – $696.0M
|
$0 |
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 7, 2026 5:23pm (19d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +48.0% | -5.4% | +11.8% | +13.1% |
| Gross Profit Growth | +50.6% | -8.1% | +8.8% | +25.8% |
| Operating Income Growth | +55.2% | -13.6% | +10.9% | +9.8% |
| Net Income Growth | +65.3% | -9.1% | +11.9% | +6.0% |
| EBITDA Growth | +52.6% | -13.3% | +12.7% | +16.2% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 5:22pm (19d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-25 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $388.58 | $389 |
| 2026-06-24 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $374.10 | $374 |
| 2026-06-23 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $370.60 | $371 |
| 2026-06-22 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $351.33 | $351 |
| 2026-06-18 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $355.47 | $355 |
| 2026-06-17 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $356.60 | $357 |
| 2026-06-16 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $356.31 | $356 |
| 2026-06-15 | DOYLE PETER | P-Purchase | 4.00 | $381.95 | $1,528 |
| 2026-06-15 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $369.40 | $369 |
| 2026-06-12 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $384.53 | $385 |
| 2026-06-11 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $370.47 | $370 |
| 2026-06-10 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $380.37 | $380 |
| 2026-06-09 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $386.62 | $387 |
| 2026-06-05 | STEDDUM CHRIS | S-Sale | 3,170.00 | $400.25 | $1.3M |
| 2026-06-08 | STEDDUM CHRIS | S-Sale | 730.00 | $400.21 | $292,153 |
| 2026-06-08 | STEDDUM CHRIS | S-Sale | 100.00 | $401.18 | $40,118 |
| 2026-06-08 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $402.65 | $403 |
| 2026-06-05 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $394.84 | $395 |
| 2026-06-04 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $406.73 | $407 |
| 2026-06-03 | HORIZON KINETICS ASSET MANAGEMENT LLC | P-Purchase | 1.00 | $406.72 | $407 |
Dividend History (Last 20)
Last updated: Jun 7, 2026 5:16pm (19d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-06-01 | $0.60 | 2026-05-05 | 2026-06-01 | 2026-06-15 |
| 2026-03-02 | $0.60 | 2026-02-10 | 2026-03-02 | 2026-03-16 |
| 2025-12-01 | $1.60 | 2025-11-03 | 2025-12-01 | 2025-12-15 |
| 2025-09-02 | $1.60 | 2025-08-05 | 2025-09-02 | 2025-09-16 |
| 2025-06-02 | $1.60 | 2025-05-06 | 2025-06-02 | 2025-06-16 |
| 2025-03-03 | $1.60 | 2025-02-18 | 2025-03-03 | 2025-03-17 |
| 2024-12-02 | $1.60 | 2024-11-04 | 2024-12-02 | 2024-12-16 |
| 2024-09-03 | $1.17 | 2024-08-07 | 2024-09-03 | 2024-09-17 |
| 2024-07-01 | $10.00 | 2024-06-13 | 2024-07-01 | 2024-07-15 |
| 2024-06-03 | $1.17 | 2024-05-06 | 2024-06-03 | 2024-06-17 |
| 2024-02-29 | $3.50 | 2024-02-13 | 2024-03-01 | 2024-03-15 |
| 2023-11-30 | $3.25 | 2023-10-31 | 2023-12-01 | 2023-12-15 |
| 2023-08-31 | $3.25 | 2023-08-01 | 2023-09-01 | 2023-09-15 |
| 2023-06-07 | $3.25 | 2023-05-02 | 2023-06-08 | 2023-06-15 |
| 2023-03-07 | $3.25 | 2023-02-13 | 2023-03-08 | 2023-03-15 |
| 2022-12-07 | $3.00 | 2022-11-01 | 2022-12-08 | 2022-12-15 |
| 2022-09-07 | $3.00 | 2022-08-02 | 2022-09-08 | 2022-09-15 |
| 2022-06-07 | $23.00 | 2022-05-03 | 2022-06-08 | 2022-06-15 |
| 2022-03-07 | $3.00 | 2022-02-11 | 2022-03-08 | 2022-03-15 |
| 2021-12-07 | $2.75 | 2021-10-28 | 2021-12-08 | 2021-12-15 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Starting from the raw numbers: TPL ran $798M revenue in 2025 vs $451M in 2021 — a 15% CAGR, but the trajectory is lumpier than that suggests. 2022 was $667M, 2023 dropped to $632M (oil prices fell), 2024 recovered to $706M, 2025 hit $798M. The Q1 2026 print of $236.8M annualizes near $950M if you straight-line it, but Q1 has historically been a seasonal high (Q1 2025 was $196M vs Q2 2025 $187.5M). More importantly, net margin compressed from 66.5% in Q2 2024 to 58-60% in recent quarters even as revenue grew — that's mix shift toward lower-margin water/surface revenue away from pure royalty, and it matters for the "perpetual high-margin royalty" thesis. FCF of $486M on a $26.9B market cap is a 1.8% yield. ROIC of 30% is real but on a tiny capital base; the relevant question is what the marginal incremental dollar of retained earnings earns, and with $144.8M cash sitting idle and minimal capex needs, capital allocation discipline (not return on existing assets) is the binding constraint.
The prior models are internally contradictory in a way worth flagging. The Synthesis says "Priced for Perfection" with 41.7% implied FCF growth required. Market Forces says "Market Tailwinds" and calls it mispriced cheap. These cannot both be right at $390. The Pre-Flight correctly identifies the royalty-platform nature, but the Synthesis math is more defensible: at 55x earnings and 24x sales for a business whose underlying commodity (WTI) is range-bound and whose acreage is fixed, you need either sustained Permian production growth at the wellhead (which Diamondback, Pioneer/Exxon, and others are guiding to moderate, not accelerate) OR aggressive multiple expansion on a "scarcity" narrative. The Market Forces verdict reads like it's pattern-matching on "high margin + low debt + insider buying" without doing the multiple work. I side with Synthesis.
The contrarian case against my own skepticism: TPL has no debt, $144.8M cash, 74% operating margins, and the Permian still has 15+ years of Tier 1 inventory at current rig counts. Every barrel produced on their acreage in perpetuity pays them a royalty with zero incremental capex. If you believe oil stays $70-85 and Permian production grinds higher 3-5%/year for a decade, and TPL's water/surface business compounds 10%+, then a 50x multiple is defensible because the duration is effectively infinite and the terminal value dominates DCF. The stock fell from $547 to $390 (-29%) — some of the "priced for perfection" premium has already bled out. But the insider activity is a red herring: ten consecutive 1-share purchases is almost certainly a DRIP or automated plan, not a signal. Anyone citing "net insider buying" here without flagging the 1-share lot size is being sloppy.
Where the data is thin: balance sheet equity and total debt are blank in the tile, which matters less for TPL (essentially debt-free) than for most names, but P/B of 13.6 implies ~$1.98B equity — fine. The bigger gap is no forward guidance on water services growth, which is the swing factor between "royalty company growing 5%" and "royalty + infrastructure compounding 10%." Q1 2026 at $236.8M is encouraging but one print. Margin compression from 66.5% → 60.3% over seven quarters is the most underweighted negative in the prior models — nobody flagged that the mix shift is structurally diluting the very thing that justifies the multiple. At $390, you're paying 55x earnings for a business with decelerating margin and commodity-dependent revenue; fair value on a 30-35x multiple of ~$500M normalized earnings is closer to $230-280. The 29% drawdown isn't enough.
GPT Critique
In reviewing the raw data for Texas Pacific Land Corporation (TPL), what stands out is the company's impressive revenue growth from $451 million in 2021 to $798 million in 2025, marking a 15% CAGR. However, this growth trajectory has not been smooth, with fluctuations linked to oil price movements, as seen with a revenue dip from $667 million in 2022 to $632 million in 2023 before rebounding. The Q1 2026 revenue of $236.8 million, if annualized, suggests a potential near-term revenue of $950 million, but given historical seasonality, this figure may be inflated. Net income margins have compressed from 66.5% in Q2 2024 to around 60% recently, indicating a shift towards lower-margin revenue streams like water services. With a PE ratio of 53.372 and a PS ratio of 24.8106, TPL's valuation appears stretched, particularly given the fixed nature of its 880,000 acres and reliance on external operators for production.
Opus argues that TPL is "Priced for Perfection," requiring significant future growth to justify its current market price of $390. I agree with this assessment. The stock's lofty valuation seems contingent on both continued Permian production growth and an optimistic view of TPL's water and surface revenue streams, which are diluting the high-margin royalty thesis. Opus points out a mix shift towards lower-margin revenue as a critical factor, and I concur that this is a significant concern. The market's implied 41.7% FCF growth expectation is ambitious, given the company's current trajectory and sector dynamics.
Where I diverge from Opus is in their strict dismissal of insider activity. Opus notes the series of one-share purchases as likely automated, yet even symbolic insider purchases can indicate confidence or an attempt to support the stock price. While not definitive evidence of value, this activity shouldn't be entirely discounted without further investigation into the nature of these transactions.
A careful skeptic might argue that TPL's high operating margins and debt-free status provide a margin of safety that justifies a premium valuation, particularly if oil prices remain stable or increase. The skeptic might also posit that the market is correctly pricing TPL's unique position as a perpetual royalty play with minimal capex requirements, viewing any potential growth in Permian production as a long-term tailwind rather than a short-term risk.