Texas Pacific Land Corporation

TPL

Oil & Gas Exploration & Production · Energy

Price

$415.70

-0.35 (-0.08%)

Market Cap

$28.67B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−1.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 69.8M (2021) → 69.0M (2025)

Texas Pacific Land Corporation owns about 873,000 acres of land in West Texas, mostly in the Permian Basin — one of the most oil-rich regions in the world. The company does not drill for oil itself. Instead, it leases its land to oil and gas companies like Chevron and ConocoPhillips, who pay to extract the oil and gas underneath. It also earns money by selling water, which drillers need in large quantities, and by charging fees when pipelines or roads cross its property.

The company makes money through royalties, land sales, and water services — not by taking on the risk of drilling. It operates almost entirely in Texas, and its near-98% gross margin reflects how little it costs to run a landowner business compared to an actual driller. Its main moat is simple: it owns the land, and nobody can replicate that. The key risk is that if oil prices fall sharply, drillers slow down activity, which directly reduces the royalty payments Texas Pacific collects.

Winston Score History

Politician Trades

4 trades / 12mo

2 Congressional buys and 2 sells on TPL in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+4.3% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$145M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Texas Pacific Land Corporation is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

136.2%

Premium pricing power — 136.2% gross margin

Operating Margin

70.5%

Excellent — 70.5% operating margin

ROCE

10.1%

Below par — 10.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+13.1%

Fast-growing sales (13.1% YoY)

EPS YoY

+6.1%

Modest earnings growth (6.1% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

113%

Turns 113% of profit into real cash

FCF Margin

60.9%

Converts sales into free cash efficiently (60.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.01

Conservative — low debt load (0.01)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

59.5x

Expensive — P/E 59.5

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+14.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (59.5 → 45.3)

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Dividends

Dividend Yield

0.55%

Small dividend — 0.55% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

-26.3%

Dividend cut (-26.3% YoY) — warning sign

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