Texas Pacific Land Corporation
TPL
Market Cap$29.92B
Close$
Earnings Call Q4 2024
February 20, 2025 - AI Summary
Record Financial Performance: Texas Pacific Land Corporation (TPL) achieved record free cash flow of approximately $461 million for 2024, marking an 11% year-over-year increase. Oil and gas royalty production volumes grew by 14%, water sales by 31%, and produced water royalty volumes by 37%. This robust performance culminated in a record shareholder return of capital, totaling $376 million via dividends and buybacks.
Positive Outlook for Permian Basin: Despite a decrease in rig counts, Permian oil and gas production managed to grow in 2024. New permits increased by 20% year-over-year, signaling potential growth moving into 2025. The company expects future production to be driven by improving efficiencies and longer drill laterals, with a strong inventory of drilled but uncompleted wells (DUCs) available for development.
Investment in Next-Generation Opportunities: TPL is focusing on diversifying beyond its legacy oil and gas business, particularly into data centers and energy infrastructure, where there is increasing interest in the Permian region. The company is exploring synergies between its water business and potential power generation projects, especially with the integration of produced water desalination efforts.
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$642.42
53.4% downside
Current Fair Value
53.4% downsideOvervalued by 53.4% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $29.92 Billion |
|---|---|
| Enterprise Value | $29.58 Billion |
| Dividend Yield | $15.54 (1.19409866297833%) |
| Earnings per Share | $19.75 |
| Beta | 1.21 |
| Outstanding Shares | 22,974,238 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 65.86 |
|---|---|
| PEG | 6816.97 |
| Price to Sales | 47.54 |
| Price to Book Ratio | 28.14 |
| Enterprise Value to Revenue | 43.08 |
| Enterprise Value to EBIT | 54.93 |
| Enterprise Value to Net Income | 65 |
| Total Debt to Enterprise | 0 |
| Debt to Equity | 0.03 |
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...