Share count
69Mpeak FY2023
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TPL, Texas Pacific Land
Oil & Gas Producers REIT
Texas Pacific Land market Conditions Average West Texas Intermediate oil prices for the year ended December 31, 2025 were down approximately 15% compared to average WTI oil prices during the same period last year.
Global and domestic natural gas markets benefited in 2025 from improved supply-demand balances, including tailwinds from expanded liquefied natural gas capacity and improved industrial and power demand, among other factors.
Since mid-2022, the Waha Hub located in Pecos County, Texas has at times experienced significant negative price differentials relative to Henry Hub, located in Erath, Louisiana, due in part to growing local Permian natural gas production and limited natural gas pipeline takeaway capacity.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$798M
+13.1% YoY · 21% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $237M +20.8% vs yr-ago qtr
Operating margin 77.0% yr-ago 76.6%
Net income $143M yr-ago $121M
Net margin 60.3% yr-ago 61.6%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- Revenue is led by Oil and gas royalties (52%) and Water sales (21%), with 2 more lines behind.
- What moves the needle
- Occupancy, rents, and the cost of debt. Read on funds from operations and net asset value, because GAAP depreciation distorts the earnings, and a property downturn meets a balance sheet built on leverage. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Funds from operations per share have shrunk (−16% a year). The dividend takes 27% of FFO, and is covered. The quality and location of the properties, the lease terms and occupancy, and the cost of the debt are what the 10-K settles, and no single ratio captures them.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 10-K →Revenue spreads across 5 lines, the largest Oil and gas royalties at 52%.
Revenue by product line, FY2025
- Oil and gas royalties52%$412M
- Water sales21%$170M
- Produced water royalties16%$124M
- Easement and Sundry11%$92M
- Land sales0%$819K
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2018–2025
realized figures from each filing · older years to the left| 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||
| $300M | $490M | $303M | $451M | $667M | $632M | $706M | $798M | $839M | RevenueRevenue |
| $210M | $319M | $176M | $270M | $446M | $406M | $454M | $481M | $504M | Net incomeNet inc. |
| Cash flow & returns | |||||||||
| $212M | $328M | $190M | $286M | $462M | $420M | $479M | $544M | $568M | Funds from operationsFFO |
| Balance sheet | |||||||||
| 15% | 14% | 106% | 30% | 54% | 24% | 72% | 27% | 27% | Dividend payout (FFO)Payout |
| — | $107M | $109M | $109M | $110M | $130M | $143M | $179M | $179M | Real estate (gross)RE gross |
| — | $598M | $572M | $764M | $877M | $1.2B | $1.2B | $1.6B | $1.8B | Total assetsAssets |
| ($123M) | ($304M) | ($281M) | ($428M) | ($511M) | ($725M) | ($370M) | ($145M) | ($248M) | Net debt / (cash)Net debt |
| $245M | $512M | $485M | $652M | $773M | $1.0B | $1.1B | $1.5B | $1.6B | Shareholders’ equityEquity |
| Per share | |||||||||
| 23.4M | 23.3M | 23.3M | 23.3M | 23.2M | 69.2M | 69.1M | 69.0M | 69.0M | Shares out (diluted)Shares |
| $9.09 | $14.08 | $8.18 | $12.31 | $19.92 | $6.08 | $6.94 | $7.88 | $8.23 | FFO / shareFFO/sh |
| $1.35 | $2.00 | $8.67 | $3.67 | $10.67 | $1.45 | $5.03 | $2.14 | $2.20 | Dividends / shareDiv/sh |
| $10.47 | $22.01 | $20.85 | $28.02 | $33.34 | $15.08 | $16.40 | $21.14 | $22.55 | Book value / shareBVPS |
Share counts before 2022 are restated ×3 for a stock split, so per-share figures sit on one basis.
The diluted share count moved ×2.98 into 2023 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 7-yr | 5-yr | |
|---|---|---|
| Revenue / share | −1.5%/yr | −2.3%/yr |
| Owner earnings / share | +22.3%/yr (4-yr) | +22.3%/yr (4-yr) |
| EPS | −3.5%/yr | −1.6%/yr |
| Dividends / share | +6.8%/yr | −24.4%/yr |
| Capital spending / share | −20.5%/yr (4-yr) | −20.5%/yr (4-yr) |
| Book value / share | +10.5%/yr | +0.3%/yr |
The year, in the company's words
the filing →Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.
- Water sales+12.6%
“Water sales revenue increased $19.0 million to $169.7 million for the year ended December 31, 2025 compared to $150.7 million for the year ended December 31, 2024. The growth in water sales was principally due to increases of 8.8% in water sales pricing and 3.4% in volumes for the year ended December 31, 2025 compared to the year ended December 31, 2024.”
✓ figure matches the filed record
The record, charted
FY2018–2025Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.
Revenue
$798Mlow FY2018
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Is it a good business?
- about $7.88 per shareNet income $481M + depreciation $63M
What this means
GAAP net income with property depreciation added back, because the buildings a REIT charges against earnings usually hold or grow their value. This, not net income, is what a REIT is actually priced on. It is an approximation here: where a filing reports gains on property sales, we remove them, the way the NAREIT definition does.
- Lightly coveredDividends $148M ÷ FFO $544MIndustry peers: median 70%
What this means
A REIT must distribute most of its taxable income, so a high payout is normal and the question is whether FFO covers it. Above 100%, the trust is funding the dividend with debt or asset sales, and a cut usually follows.
Is it sound?
- Leverage —Not enough data
What this means
Debt or total assets missing.
- Interest coverage (EBITDA) 948.8×Strong(operating income + depreciation) ÷ interest $690KIndustry peers: median 3.4×
What this means
How many times the property cash earnings cover the interest bill. Comfortable coverage is what lets a REIT refinance through a tight credit market instead of being forced to sell into one.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$435M
- Cash & short-term investments$248M
- Other current assets$188M
Current liabilities$103M
- Accounts payable$41M
- Other current liabilities$62M
Current ratio4.23×all current assets ÷ what's due · Graham looked for 2×
Quick ratio4.23×stricter: inventory excluded
Cash ratio2.41×strictest: cash alone against what's due
Working capital$332Mthe cushion left after near-term bills
Revenue, latest quarter vs. a year ago+20.8%the freshest read on whether the business is still growing
Current ratio, recent quarters23.0× → 4.2×
Deeper floors
Tangible book value$1.5Bequity stripped of goodwill & intangibles
Net current asset value$240MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$16M$16M of it operating leases
Deferred revenue$41Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2020 | Tyler Glover | $3.0M | $3.0M | $202M |
| 2021 | Tyler Glover | $5.0M | $5.0M | $249M |
| 2022 | Tyler Glover | $6.3M | $12.4M | $428M |
| 2023 | Tyler Glover | $6.1M | $1.4M | — |
| 2024 | Tyler Glover | $7.4M | $25.8M | — |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership6.9%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$15M
The slice of the business handed to employees in shares this year, 2% of revenue, equal to 3% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Peers, Specialty REITs
The same industry, side by side on the REIT lens. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | FFO margin | FFO / assets | Payout (FFO) | Debt / assets |
|---|---|---|---|---|---|
| LAMRLamar Advertising | $2.3B | 36% | 11.9% | — | 51% |
| OUTOUTFRONT Media Inc. | $1.8B | 16% | 5.1% | 70% | 48% |
| HHHHoward Hughes Holdings Inc. | $1.5B | 19% | 2.9% | — | 55% |
| TPLTexas Pacific Land | $798M | 67% | 37.5% | 28% | — |
| EPREPR Properties | $718M | 53% | 5.7% | 80% | 49% |
| RYNRayonier Inc. REIT | $484M | 28% | 8.1% | 56% | 37% |
| HASIHA Sustainable Infrastructure Capital, Inc. | $401M | 31% | 1.5% | 174% | 39% |
| SAFESafehold Inc. New Common Stock | $386M | 20% | 1.7% | 30% | 63% |
| Group median | — | 30% | 5.4% | 63% | — |
The price
What a price has to assume.
What the price implies
price / FFOA REIT is priced on a multiple of its funds from operations (FFO), the cash it earns once the depreciation on its buildings is added back. Type today’s price; we show the multiple you would pay and the income and growth it implies.
$
The assumptions
FFO / share, delivered−29%/yr’20→’25
The justified multiple is 1 ÷ (required return − growth), a perpetuity on FFO. At an 8% required return and 3% growth, a REIT is worth about 20× FFO.
Enter a price above to run it.
Price / FFO—
Justified by growth—
Dividend yield—
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
FFO about $8.23 per share on 69M shares. The dials set the multiple they justify; your price sets the multiple you are paying. FFO here adds back depreciation and removes property-sale gains, the NAREIT method; it does not net out maintenance capex (AFFO), occupancy or lease terms, which the 10-K does.
Cite: Owner Scorecard, "Texas Pacific Land (TPL), the owner's record," https://ownerscorecard.com/c/TPL, data as of 2026-07-09.
Manual order: ← TPGXL its page in the Manual TPR →
Industry order: ← TALO the Oil & Gas Producers chapter TTE →