Texas Pacific Land Corporation (TPL) Stock Price & How to Invest

Texas Pacific Land Corporation owns roughly 880,000 surface acres across West Texas, most of it sitting on the Permian Basin, along with oil and gas royalty interests under about 195,000 net royalty acres. It drills nothing and operates no wells. Large operators including Chevron, ConocoPhillips and Exxon do the drilling on its land, and TPL collects a royalty on the production plus fees for pipeline easements, surface leases, road use, and materials. A second segment, Texas Pacific Water Resources, sells brackish source water for completions and earns royalties on produced water disposed of on TPL acreage. In the second quarter of 2026, oil and gas royalties brought in ~$145.6 million, water sales ~$39.7 million, produced water royalties ~$37.1 million, and easements and other surface income ~$23.7 million.

The investment picture rests on a business model that is close to pure margin. Q2 2026 revenue of ~$246 million produced ~$215.6 million of adjusted EBITDA (~88% margin), ~$153.9 million of net income, and ~$155.5 million of free cash flow, with essentially no debt and a large cash balance. Royalty production hit a record ~39,700 boe/d and produced water royalty volumes a record ~4.9 million barrels per day. The market prices that quality aggressively: a ~$23.6 billion market cap on ~$897 million of trailing revenue is about 26 times sales and roughly 45 times trailing earnings, multiples no exploration and production company commands. What has to stay true is that Permian drilling on TPL's specific acreage keeps growing, that the water and desalination business scales into something more than an adjacency, and that the emerging West Texas power and data center demand actually converts surface acreage into recurring income.

The valuation is the dominant risk: at roughly 26 times sales and around 45 times trailing earnings, TPL is priced far above producers and mineral peers, so a slowdown in Permian activity gets amplified in the stock rather than cushioned. Revenue is levered to oil and gas prices and to operator drilling decisions TPL does not control, and Permian gas has repeatedly cleared at negative prices at the Waha hub when takeaway is tight. Nearly all of the asset base sits in one basin, so any regional constraint on takeaway, water disposal permitting, or seismicity regulation lands on the whole company at once. The water and desalination business is more capital intensive and less proven than the royalty stream, and treated produced water still needs regulatory clearance and buyers at scale before it is a business rather than a pilot. The power and data center opportunity is real but early: one Chevron agreement is a data point, not a run rate, and the multiple already assumes several more follow.

We give no verdict on Texas Pacific Land Corporation. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Royalty volumes on other people's capital. TPL bears none of the drilling or completion cost yet collects on every barrel produced under its royalty acreage.

The case against. The valuation is the dominant risk: at roughly 26 times sales and around 45 times trailing earnings, TPL is priced far above producers and mineral peers, so a slowdown in Permian activity gets amplified in the stock rather than cushioned.

Read the full bull and bear case on TPL, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Texas Pacific Land Corporation's investor relations page or your broker.

• Revenue (TTM): ~$897M
• Q2 2026 revenue: ~$246M (+31% YoY)
• Q2 2026 adjusted EBITDA: ~$216M (~88% margin)
• Q2 2026 net income: ~$154M (~$2.23 diluted EPS)
• Market cap: ~$23.6B (~26x TTM sales)
• Dividend: ~$0.60 per quarter (~0.7% yield)

TPL trades at roughly 26 times trailing sales and around 45 times trailing earnings, well above its own five-year median and far above any Permian producer. The defense of that multiple is the margin structure and the balance sheet: ~88% adjusted EBITDA margins, ~60% net margins, essentially no debt, and free cash flow that arrives without TPL spending on drilling. The offense against it is that royalty revenue still swings with commodity prices, so the multiple has to survive a soft oil year to be considered durable.

Other names that sit close to TPL: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get TPL exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so TPL sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where TPL fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

TPL is one of the highest-margin, lowest-capital ways to own Permian activity, and the entire debate is whether royalty growth plus a new water and power business can justify a multiple several times what producers fetch.

Whether TPL is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is TPL a buy or a sell?, and where the stock could go from here in the TPL stock forecast.

For income investors, whether TPL pays a dividend and how the payout looks is covered in does TPL pay a dividend? And to weigh TPL against a peer, read the full side-by-side comparisons: TPL vs BSM and TPL vs MTX.