TacticScaleWhat Texas Pacific Land Does & How It Makes Money (TPL)
Updated October 2026 · reflects Texas Pacific Land's latest reported financials
Permian Basin landowner earning oil and gas royalties and water revenue. It earns oil and gas royalties on about 224,000 net royalty acres, plus fees from easements, leases, material sales and land sales on its surface acreage.
How Texas Pacific Land makes money
It earns oil and gas royalties on about 224,000 net royalty acres, plus fees from easements, leases, material sales and land sales on its surface acreage. It also sells water sourcing, treatment and disposal services to Permian operators and collects produced-water royalties.
What Texas Pacific Land does
Texas Pacific Land Corporation, founded in 1888 and based in Dallas, is one of the largest landowners in the Permian Basin. Its Land and Resource Management segment holds perpetual nonparticipating royalty interests: a 1/128th NPRI under about 85,000 acres, a 1/16th NPRI under about 371,000 acres, and about 33,000 additional net royalty acres, for a total of about 224,000 net royalty acres. It also earns money from its surface acreage through pipeline, power line, utility and subsurface wellbore easements, through leases for processing, storage, compression facilities and roads, and through sales of caliche, sand and land. The Water Services and Operations segment provides water to Permian operators end to end: sourcing, produced-water treatment, infrastructure development and disposal. It also holds produced water royalties. Because TPL does not operate wells, its revenue depends on drilling and production activity by other companies on and around its land.
Products & services
- Oil and gas royalty interests (NPRI)
- Pipeline, power line and wellbore easements
- Surface leases for facilities and roads
- Caliche and sand material sales
- Water sourcing and produced-water treatment and disposal
- Produced water royalties
What is Texas Pacific Land worth?
On an owner-earnings DCF, Texas Pacific Land's most-likely value is about $92 versus a recent price near $361 (74% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$43) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $361 is above even the optimistic Bull case ($171) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Permian Resources (PR) · Viper Energy (VNOM) · Diamondback Energy (FANG) · Par Pacific (PARR) · Occidental Petroleum (OXY)