CluenexTexas Pacific Land TPL
Texas Pacific Land scores excellent on business quality (7.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Texas Pacific Land does
Texas Pacific Land owns vast land and royalty interests in the Permian Basin, collecting oil and gas royalties, land easements, and water sales without drilling wells itself.
- What it does best
Texas Pacific Land extracts cash through pure royalties and land ownership, yielding a gross margin of 93.3% that easily outpaces peers like FANG at 68.0%. This margin advantage is protected by historical land grants that cannot be duplicated.
- The main risk
Massive capital expenditures of $669.0 million in the latest period plunged free cash flow into a negative $66.0 million, creating execution risk if development spending fails to lift returns.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at an elite 74.8% while FCF margin dropped to negative territory due to $669.0 million in capex. Profitability remains high on revenue, but heavy spending compresses cash conversion.
Ownership of vast West Texas land acreage creates an irreplaceable geographic monopoly locked into regional operators. It sits in the top decile of its sector with a gross margin of 93.3%.
Revenue grew 13.0% to $898.0 million, though historical annual figures show growth slowing compared to prior years as the Permian basin matures.
With zero total debt and $145.0 million in cash, the balance sheet is pristine. However, heavy capital spending turned free cash flow negative to -$66.0 million. Getting softer on cash generation.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 insider bought $2K on the open market.
Our sealed record on TPL
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Texas Pacific Land scores excellent on the Cluenex quality check (7.6 of 10), measured against its own industry. Profitability is fair, moat strong, growth steady and financial health strong.
In the last 90 days of SEC Form 4 filings: 1 insider bought $2K on the open market.
Nov 4, 2026.
See TPL today
- Today's verdict on TPL, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Texas Pacific Land (TPL)”, https://cluenex.com/stocks/tpl/, data as of Oct 10, 2026.