Texas Pacific Land Corp
NYSE:TPL

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Texas Pacific Land Corp
NYSE:TPL
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Price: 1 343.82 USD -0.49%
Market Cap: 30.9B USD

Operating Margin
Texas Pacific Land Corp

76.4%
Current
80%
Average
11.8%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
76.4%
=
Operating Profit
539.1m
/
Revenue
705.8m

Operating Margin Across Competitors

Texas Pacific Land Corp
Glance View

Economic Moat
Narrow
Market Cap
30.9B USD
Industry
Energy

Texas Pacific Land Corp., with its roots stretching back to the late 19th century, has carved out a unique place in the American business landscape, primarily centered around land and mineral rights management. Originally established from the remnants of the Texas and Pacific Railway, the company transformed itself over the decades into a powerhouse in the management of vast land holdings in West Texas. These lands are rich with possibilities, not the least of which lie in the bounty of oil and gas resources beneath the surface. The company's extensive acreage in the Permian Basin, one of the most prolific oil and gas producing regions in the United States, forms the cornerstone of its financial model. By leasing these lands to oil and gas operators, Texas Pacific Land Corp. secures a steady stream of revenue through royalties, typically a percentage of the production value extracted from their land. Beyond oil and gas royalties, Texas Pacific Land Corp.'s business model integrates multiple revenue streams. It includes land sales, water services, and easements. The company takes advantage of its significant water rights to provide water solutions critical for hydraulic fracturing operations in the Permian Basin. Furthermore, Texas Pacific Land Corp. earns from infrastructure development, granting easements and rights-of-way for pipelines, power lines, and roads, which are essential as the energy landscape in West Texas evolves. This diversified revenue model ensures stability and growth, enabling Texas Pacific Land Corp. to continually benefit from the burgeoning energy industry while maintaining a lean operational structure. Through a combination of strategic leverage of land assets and innovative adaption to market needs, the company stands out as an exemplary model of how historical assets can drive modern economic success.

TPL Intrinsic Value
325.84 USD
Overvaluation 76%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
76.4%
=
Operating Profit
539.1m
/
Revenue
705.8m
What is the Operating Margin of Texas Pacific Land Corp?

Based on Texas Pacific Land Corp's most recent financial statements, the company has Operating Margin of 76.4%.

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