TPL US S&P 500Russell 1000 Earnings call · transcribed from the recording
Texas Pacific Land Corporation (TPL) · Q3 2026 results and valuation
Share price: $281.42 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 4 Nov 2026 and 6 Aug 2026
Net income up 8.7% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+8.7%
Net income vs Q2 2026
Net income 167.4M vs 153.9M
Revenue +11.1%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
If you look at it as a more normalized long term, it should get back up 40% plus over time.
Valuation
Is Texas Pacific Land Corporation undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.1% growth a year (3-year revenue growth), the model's fair value is $128.03 a share — the stock trades 120% above it. Today's price assumes 17.1% growth a year.
Current price
$281.42
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.1% for 10 yrs
Fair value / share
$128.03
Buy below
$96.02
Price vs fair value
Overvalued 120%
Price vs buy-below price
Overvalued 193%
Read between the lines
-
Figure
This represents a quarterly all-time high as well as a 4% sequential increase and a 31% increase year-over-year.
-
Dropped
TPL generated record quarterly total revenue, net income and free cash flow.
Source quote
“TPL generated record quarterly total revenue, net income and free cash flow. This quarter, we delivered exceptional results across major financial and operating metrics and achieved significant milestones towards key growth initiatives. These results were supported by record oil and gas royalty production and produced water royalty volumes.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 273.4M | 246.1M | +11.1% | 203.1M | +34.6% |
| Operating income | 207.8M | 191.8M | +8.3% | 149.1M | +39.4% |
| Net income | 167.4M | 153.9M | +8.7% | 121.2M | +38.0% |
| EPS | 2.42 | 2.23 | +8.5% | 1.76 | +37.5% |
| P/E today 32.0 | 38.3 | 55.8 | −17.5 | 12-mo loss | — |
Topics
Most discussed now
- No clear topics this period.
Faded since Q2 2026
- Dropped However, substantial new gas pipeline capacity enters service over the next few quarters, and Texas Pacific Land would expect some mix…
- Dropped Texas Pacific Land has completed construction and commenced commissioning on its desalination facility located in Orla, Texas, which it…
- Dropped A couple of Texas Pacific Land's acquisitions were some really high-interest wells in Culberson County were drilled over a pretty short…
- Dropped Texas Pacific Land wants to be as involved in the project as it can while still being really capital light.
Latest announcements
Official filings, newest first.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change; 5.08 · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Material agreement; Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K