Texas Pacific Land Corporation
TPLOwn the land beneath the oil, not the risky drilling rigs.
Because this tiny workforce controls a vast resource that throws off extraordinary cash.
Business Model
Land and royalty owner
It owns land in West Texas and collects royalties and service fees from oil and gas operators.
Economic Engine
Ultra-high margins
With 100 percent gross margins and 60 percent net margins, most revenue turns into cash.
Long-Term Lens
Permian longevity
The key question is how long the Permian Basin remains a core oil and gas province.
BinaPrint Snapshot
Style
Build
Fitness
Strong
Updated Mar 8, 2026
On this page
Company Story
How do Texas Pacific Land Corporation's business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“A rare asset-light royalty machine that could compound wealth for decades, if the Permian Basin stays productive and politically viable.”
What does Texas Pacific Land Corporation actually do?
Texas Pacific Land Corporation owns vast tracts of land in the Permian Basin and earns money from companies that drill on it.
- Owns hundreds of thousands of acres in West Texas
- Leases land to oil and gas producers
- Provides water services and other land-related income streams
Why it matters
Landowner, not driller
By avoiding drilling costs and risks, it keeps margins extraordinarily high and operations simple.
How does Texas Pacific Land Corporation make money?
It collects a percentage of oil and gas revenue as royalties and charges fees for land and water services.
- Royalty income tied to production volumes and commodity prices
- Easements and surface use agreements
- Water sourcing and infrastructure services for operators
Economic clue
60 percent net margin
When 60 percent of revenue becomes profit, the business does not need heavy spending to stay profitable.
Why do long-term investors keep Texas Pacific Land Corporation on the radar?
It is a toll collector on one of the most important oil basins in North America.
- Revenue has grown about 15 percent per year on average over the past five years
- Earnings per share have grown about 16 percent per year over that period
- Minimal capital spending, about 0.1 billion dollars in the last 12 months
Investor takeaway
Cash-rich model
Free cash flow closely matches net income at 1.01 times, showing profits are real and spendable.
Based on company financial statements.
What Could Change The Story
- Proved it would move the profile toward Venture.
- Matured would move the profile toward Vault.
Benchmark Comparison
How has Texas Pacific Land Corporation performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$3,938
+293.8% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| TPL | +293.8% | $3,938 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Texas Pacific Land Corporation
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- Exposure to long-term oil and gas production without operating drilling risk
- A business with 74 percent operating margins and strong cash conversion
- A simple model tied to a hard asset, land in the Permian Basin
Be Careful If You Expect
- Stable, predictable revenue regardless of oil price swings
- Rapid diversification beyond oil and gas
- Aggressive share buybacks or large dividends, which have been minimal recently
What To Watch Over Time
- Production trends in the Permian Basin over the next decade
- Regulatory and climate policy shifts affecting US oil output
- How management deploys growing cash balances
BinaPrint Position
Where does Texas Pacific Land Corporation sit on the BinaPrint map right now?
Test whether business quality and financial profile match the company's stated narrative.
Advanced BinaPrint details
Open the axes, investor fit, and risk framing behind this profile.
Key Metrics
Which metrics matter most for Texas Pacific Land Corporation right now?
Three durable business metrics that matter more than day-to-day price moves.
15.3% per year (5-year average)
15.9% per year (5-year average)
100% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 15.3% per year (5-year average) | Shows whether the business has been expanding fast enough to create more long-term value. |
| EPS Growth | 15.9% per year (5-year average) | Shows whether earnings per share are compounding for owners over time. |
| Margin Quality | 100% gross margin | Shows how much room the business has to fund growth, absorb shocks, and stay profitable. |
Based on company financial statements.
Fundamentals
What do Texas Pacific Land Corporation's fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
96.2% ROIC
100.0% gross margin
60.9% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 96.2% ROIC | The business is currently showing excellent capital efficiency. |
| Profitability | 100.0% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 60.9% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Texas Pacific Land Corporation?
Texas Pacific Land Corporation currently appears in these ETF and fund proxies.
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Texas Pacific Land Corporation?
Company-specific questions readers often ask about Texas Pacific Land Corporation.
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
It owns land and mineral rights in the Permian Basin and collects royalties and fees from oil and gas companies that drill there.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Irreplaceable land in the heart of the Permian Basin creates a structural advantage, since no competitor can manufacture new mineral rights in that location.
The asset-light royalty model produces 60 percent net margins and requires little capital spending, allowing earnings to scale with production growth.
Permian Basin production has been a structural growth engine for US oil supply, and if it remains competitive globally, royalty income can compound for decades.
With only 111 employees overseeing billions in market value, the company benefits from extreme operating leverage as volumes rise.
Bear case
What can break
A long-term decline in global oil demand due to electrification or climate policy could reduce drilling activity and permanently shrink royalty income.
Federal or state regulation targeting hydraulic fracturing or methane emissions could limit production in the Permian Basin.
If the Permian Basin matures faster than expected and production peaks, revenue growth could stall or reverse over a decade.
Heavy dependence on commodity prices means prolonged low oil prices would directly compress revenue and cash flow.
Risk Radar
Key Risks
Where downside pressure can build.
Commodity exposure, revenue is highly sensitive to oil and gas prices, with 13.1 percent year-over-year revenue growth partly reflecting price and volume swings.
Geographic concentration, the vast majority of assets are tied to the Permian Basin in West Texas.
Policy risk, stricter environmental rules could reduce drilling activity on its land and cut royalty streams.
Pressure points
Concentration risk
Texas Pacific Land Corporation is heavily concentrated in one region, the Permian Basin of West Texas. This geographic focus creates efficiency and expertise, but it also means that regional regulatory changes, infrastructure constraints, or basin-level production declines would directly impact most of its revenue.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $525.03
- Daily move
- +0.33%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.