Texas Pacific Land Corporation
TPL
Market Cap$25.61B
Close$
Earnings Call Q1 2025
May 8, 2025 - AI Summary
Strong Q1 Performance: Texas Pacific Land Corporation (TPL) reported record quarterly results with oil and gas royalty production averaging approximately 31,100 barrels of oil equivalent per day, indicating a 7% growth sequentially and a remarkable 25% growth year-over-year (YOY). Water segment revenues reached $69 million, demonstrating a 3% sequential increase and an 11% YOY increase, highlighting resilience in TPL's business despite broader market challenges.
Positive Free Cash Flow and Strong Financial Position: TPL generated free cash flow of $127 million for Q1 2025, reflecting an 11% increase compared to the previous year. The company maintained a net cash position of $460 million with zero debt, positioning TPL strongly for potential opportunities in a volatile market.
Robust Well Inventory and Hedged Revenue Streams: TPL has a strong near-term well inventory with 24.3 net wells (including permitted, drilled but uncompleted, and completed but not producing) - the highest recorded level. This inventory is expected to provide stability in production levels even if market conditions worsen. Additionally, TPL's revenue from produced water royalties is relatively insulated from commodity price fluctuations, given its fixed fee model.
Exclusive for Stockcircle Pro members
Sign up
$646.80
40.8% downside
Current Fair Value
40.8% downsideOvervalued by 40.8% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $25.61 Billion |
|---|---|
| Enterprise Value | $25.21 Billion |
| Dividend Yield | $15.54 (1.39493550442986%) |
| Earnings per Share | $19.75 |
| Beta | 1.21 |
| Outstanding Shares | 22,980,695 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 55.63 |
|---|---|
| PEG | 1020.87 |
| Price to Sales | 35.26 |
| Price to Book Ratio | 21.02 |
| Enterprise Value to Revenue | 34.64 |
| Enterprise Value to EBIT | 44.92 |
| Enterprise Value to Net Income | 54 |
| Total Debt to Enterprise | 0 |
| Debt to Equity | 0.05 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Texas Pacific Land Corporation
Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 880,000 acres of land in West Texas. The Corporation is not an oil and gas producer, but its surface and royalty ownership allow rev...