Texas Pacific Land (TPL) Financial Forecast Calculator

Texas Pacific Land Corporation (TPL) is a major landowner in Texas, generating revenue by granting access to its 880,000 acres of surface rights and collecting royalties on extracted oil, gas, and water. The company operates an asset-light model, essentially functioning as a toll bridge for Permian Basin energy development without drilling or operating wells itself.

TPL generates revenue primarily through its Land and Resource Management segment, which accounts for approximately 55% of revenue, and its Water Services and Operations segment, making up about 45%. These revenues stem from royalties on oil, gas, and water, as well as fees for surface access and water disposal, all within the Permian Basin.

TPL's capital expenditure strategy is heavily growth-oriented, with 80% allocated to growth and 20% to maintenance. Recent significant investments include the construction of a 10,000 barrel-per-day produced water desalination facility in Orla, Texas, and strategic bolt-on acquisitions of adjacent royalty interests.

TPL's balance sheet shows total assets between $1.5 billion and $2.0 billion, with land carried at historical cost, which significantly understates its current market value. The company generally maintains positive net working capital due to substantial cash balances and funds all its growth entirely from operating cash flow.

Yes, an Excel financial model for Texas Pacific Land Corporation (TPL) is available for download. This model offers a comprehensive equity valuation and cash flow forecast, covering a forecast horizon from FY2026 through FY2030.

Texas Pacific Land Corporation holds a unique, monopoly-like competitive position due to its extensive surface acreage in the Permian Basin. This allows the company to capture high margins from energy operators who require access for drilling, pipelines, and water disposal, leveraging its asset-light business model.