Texas Pacific Land Corp

TPLdata completeness 75%8 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Texas Pacific Land Corp earns about 103% on invested capital, far above its ~9% cost of capital, but has diluted owners by 790% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $66.05 and $71.47 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$451M1$667.4M2$631.6M3$705.8M3$798.2M3
Net income$270M4$446.4M5$405.6M6$454M6$481.4M6
Operating cash flow$265.2M7$447.1M8$418.3M9$490.7M9$545.9M9
Capital expenditure$16.4M10$19M10
Free cash flow (derived)$248.7M7$428.2M8
Total debt
Cash & equivalents$428.2M11$510.8M12$725.2M13$369.8M14$144.8M14
Diluted shares7.8M23.2M69.2M69.1M69.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$211.35
your share of equity
Profit it earned you last year
$69.74
Free cash flow it threw off
Debt you’d be carrying

10 shares is a claim on $211.35 of net worth that earned you $69.74 last year.

iii. Is this a good business?
Moat signal · return on invested capital
103% avg · 5y
FY21 121%FY22 170%FY23 128%FY24 60%FY25 37%

It earned about 103% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+790% shares · 5y

Share count is up 790% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $66.05 and $71.47 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$71.47
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$248.7M
DCF · Growth Exit 5Y
$66.05
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$248.7M
Earnings Power Value
$67.01
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$446.4M
  • growthAssumed0.0%
Graham Number
$57.57
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $66.05
The three cases
Bear0.0%$53.59
Base5.0%$66.05
Bull10.0%$80.96

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001811074-24-000015 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001811074-25-000044 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001811074-26-000018 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001811074-24-000015 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001811074-25-000044 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001811074-26-000018 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001811074-24-000015 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001811074-25-000044 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001811074-26-000018 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001811074-23-000014 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2021-12-31 · accession 0001811074-23-000014 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2022-12-31 · accession 0001811074-24-000015 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-12-31 · accession 0001811074-25-000044 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2024-12-31 · accession 0001811074-26-000018 (CashAndCashEquivalentsAtCarryingValue)