NYSE:TPL
Texas Pacific Land Corp
A premier owner of premium rangeland assets generating stable cash flow from cattle operations and mineral interests across the Southern United States.
Key Metrics
Investment Thesis
Bull Case
Investors may buy this stock because it offers a defensive income play with low volatility, backed by tangible assets that appreciate over time and provide consistent cash flows from essential agricultural commodities.
Bear Case
Conversely, potential investors might avoid the stock due to its high capital intensity required for land expansion, exposure to climate-related agricultural risks, and a significant accumulated deficit in retained earnings that limits near-term share buyback capacity.
About Texas Pacific Land Corp
Texas Pacific Land Corp owns and manages approximately 1.6 million acres of prime rangeland in Oklahoma, Texas, and New Mexico, serving the global beef and dairy industries through high-quality grazing leases and mineral rights royalties.
Analysis
Management Discussion
The company reported a robust 2025 revenue of $798.2M and net profit of $481.4M, demonstrating strong operational efficiency and the ability to generate substantial free cash flow even as capital expenditures reached nearly $600M for land acquisitions and improvements.
Industry Overview
The US rangeland industry is characterized by limited supply of high-quality grazing land, making large-scale owners like Texas Pacific Land Corp highly valuable as demand for sustainable beef production continues to grow globally.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $667.4M | $631.6M | $705.8M | $798.2M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $667.4M | $631.6M | $705.8M | $798.2M |
| Operating Expenses | $105.1M | $145.5M | $166.7M | $206.0M |
| Operating Income | $562.3M | $486.1M | $539.1M | $592.2M |
| G&A | $13.3M | $14.9M | $34.5M | $23.8M |
| Stock-Based Comp | $8.4M | $10.3M | $12.5M | $15.1M |
| D&A | $15.4M | $14.8M | $25.2M | $62.5M |
| Depreciation | $14.2M | $12.2M | $13.6M | $17.1M |
| Amortization | — | $400.0K | $1.5M | $2.3M |
| Other OpEx | $91.8M | $130.6M | $132.2M | $182.2M |
| Non-Operating Income | $6.5M | $31.5M | $39.7M | $18.2M |
| Pre-Tax Income | $568.9M | $517.6M | $578.8M | $610.3M |
| Income Tax | $122.5M | $111.9M | $124.9M | $129.0M |
| Continuing Ops | $446.4M | $405.6M | $454.0M | $481.4M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $446.4M | $405.6M | $454.0M | $481.4M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $446.4M | $405.6M | $454.0M | $481.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $633.4M | $862.5M | $503.4M | $319.3M |
| Cash & Equivalents | $510.8M | $725.2M | $369.8M | $144.8M |
| Prepaid Expenses | $7.4M | $2.9M | $5.3M | $5.3M |
| Other Current Assets | $115.1M | $134.4M | $128.2M | $169.2M |
| Long-Term Assets | $244.0M | $293.9M | $744.7M | $1.30B |
| PP&E (Net) | $85.5M | $89.6M | $122.6M | $164.5M |
| Intangibles | — | $21.0M | $35.2M | $32.8M |
| Operating Leases | $2.5M | $1.9M | $1.2M | $13.7M |
| Other LT Assets | $156.0M | $181.5M | $585.7M | $1.09B |
| Total Assets | $877.4M | $1.16B | $1.25B | $1.62B |
| Current Liabilities | $39.6M | $44.4M | $46.6M | $72.6M |
| Deferred Revenue | $4.5M | $6.3M | $6.8M | $20.1M |
| Taxes Payable | $3.2M | $4.8M | $4.4M | $4.0M |
| Other Current Liab | $31.9M | $33.3M | $35.4M | $48.5M |
| Long-Term Liabilities | $64.9M | $68.8M | $69.0M | $91.8M |
| LT Operating Leases | $2.0M | $1.2M | $453.0K | $16.2M |
| Other LT Liab | $41.3M | $42.6M | $47.9M | $54.5M |
| Total Liabilities | $104.5M | $113.2M | $115.6M | $164.4M |
| Shareholders' Equity | $772.9M | $1.04B | $1.13B | $1.46B |
| Paid-In Capital | $8.3M | $14.6M | $19.9M | $9.9M |
| Retained Earnings | $866.1M | $1.17B | $1.28B | $1.60B |
| AOCI | $2.5M | $1.8M | $3.6M | $4.2M |
| Treasury Stock | $104.1M | $145.0M | $168.8M | — |
| Total L&E | $877.4M | $1.16B | $1.25B | $1.62B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $446.4M | $405.6M | $454.0M | $481.4M |
| Non-Cash Adjustments | $-3.0M | $-9.1M | $27.3M | $116.9M |
| Working Capital Changes | $3.8M | $21.8M | $9.4M | $-52.4M |
| Cash from Operations | $447.1M | $418.3M | $490.7M | $545.9M |
| Capital Expenditures | $19.0M | — | — | — |
| Cash from Investing | $-21.4M | $-60.3M | $-471.7M | $-595.8M |
| Share Buybacks | $87.8M | $42.6M | $29.2M | $8.4M |
| Dividends Paid | $247.3M | $100.0M | $347.3M | $147.8M |
| Cash from Financing | $-336.8M | $-144.6M | $-378.1M | $-176.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $88.9M | $213.4M | $-359.2M | $-226.0M |
| Beginning Cash | $428.2M | $517.2M | $730.5M | $371.4M |
| Ending Cash | $517.2M | $730.5M | $371.4M | $145.4M |
Frequently Asked Questions
How does Texas Pacific Land Corp make money?
The company's revenue is driven by two primary segments: cattle ranching operations where leasehold fees are collected from third-party cattlemen, and mineral interest royalties derived from oil and gas production on its land holdings.
What are the main risks for TPL?
Major risk factors include prolonged drought conditions affecting cattle productivity, fluctuations in global beef and dairy demand impacting lease rates, potential regulatory changes regarding land use or water conservation, and volatility in oil and gas commodity prices affecting mineral royalties.
What is TPL's competitive advantage?
Texas Pacific Land Corp possesses a dominant market position due to its ownership of 1.6 million contiguous acres of high-quality Class I and II rangeland with superior water rights, creating a significant moat against smaller competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.