Stock of the Day

July 5, 2021

Texas Pacific Land (TPL)

$374.51
+$10.13 (+2.8%)
Market Cap: $25.13B

About Texas Pacific Land

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.

Today's Trend

Texas Pacific Land Corporation (NYSE: TPL) shares have decreased following its second-quarter earnings report, as investors focused on mixed results and significant spending on longer-term growth initiatives despite record headline figures.

  • TPL reported record second-quarter revenue of $246.1 million, net income of $153.9 million and free cash flow of $155.5 million. Earnings of $2.23 per share exceeded the consensus estimate of $2.18 and rose from $1.68 a year earlier. Texas Pacific Land Corporation Announces Second Quarter Results
  • Oil and gas royalty revenue increased sequentially, supported by higher royalty production and stronger realized pricing. Management also highlighted a strategic growth pivot involving data centers, power generation and produced-water infrastructure. Texas Pacific Land Earnings Call Signals Growth Pivot
  • The company declared a quarterly dividend of $0.60 per share, payable September 15 to shareholders of record September 1, providing continued income support for investors. Texas Pacific Land Dividend and Results
  • TPL is commissioning a produced-water desalination facility in Orla, Texas and made $110.2 million of land acquisitions tied to data-center and power-generation initiatives. These investments could diversify future revenue but may require substantial capital before producing meaningful returns. TPL Q2 2026 Earnings Call Transcript
  • Revenue fell short of the approximately $249.5 million analyst estimate, even though earnings beat expectations. Investors also noted that water-sales revenue declined to $39.7 million from $46.9 million in the prior quarter as volumes dropped. Texas Pacific Land Falls After Q2 Report
  • The sell-the-news reaction reflects elevated expectations for TPL’s premium-valued stock. Management cautioned that commodity prices and customers’ development decisions directly affect revenue, adding uncertainty to forward results.
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