Texas Pacific Land Corporation

Texas Pacific Land Corporation posted record Q3 production and cash generation, but normalized cash flow valuation limits upside at current prices. I assign TPL a HOLD rating, with a base sum-of-the-parts valuation of $318.62 and a weighted target price of $327.33 versus a $287.65 share price. TPL trades at 23x 2027 normalized adjusted EBITDA and 32.3x estimated free cash flow, offering a modest 0.8% dividend yield; capital appreciation is the primary thesis.

Texas Pacific Land eyes Permian growth and data center expansion as record royalty production, stronger gas prices and water projects support its outlook.

Texas Pacific Land Corporation (TPL) Q3 2026 Earnings Call Transcript

Texas Pacific (TPL) came out with quarterly earnings of $2.42 per share, beating the Zacks Consensus Estimate of $2.35 per share. This compares to earnings of $1.76 per share a year ago.