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Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as TPL, the Company, our, we, or us ) is a Delaware Corporation and one of the largest landowners in the State of Texas with approximately 882,000 surface acres of land, principally concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and …
Margins and capital returns are both well above average: 74.19% operating margin, ROIC at 35.49%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 13.1%, still solid. Margins contracted 2.2pp, which offsets some of the top-line progress.
ROIC dropped from 38.03% to 35.49%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$839M
▲ +13.1% YoY
Net Income (TTM)
$504M
▲ +6.0% YoY
Op. Margin
74.42%
▼ -2.2pp YoY
ROIC
34.13%
▼ -2.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$551M
▲ +11.3% YoY
Op. Cash Flow (TTM)
$551M
▲ +11.3% YoY
Net Debt
-$230M
Net Cash Position
Cash & Equiv.
$248M
5Y CAGR: +21.4%
5Y CAGR: +22.0%
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