How does Texas Pacific Land (TPL) make money?

Texas Pacific Land (TPL) generates revenue primarily from Oil And Gas Royalties, which accounted for 49.9% of total revenue in TTM through Q1 2026. The company reported $839.02M in revenue and converted 60% of it into net profit, equivalent to roughly $503.63M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Texas Pacific Land (TPL)?

Texas Pacific Land (TPL) reported a gross profit margin of 97.7% in TTM through Q1 2026, equivalent to $819.72M in gross profit on $839.02M in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Texas Pacific Land (TPL)?

Texas Pacific Land (TPL) reported an operating profit margin of 74.4% in TTM through Q1 2026, equivalent to $624.42M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Texas Pacific Land (TPL)?

Texas Pacific Land (TPL) reported a net profit margin of 60% in TTM through Q1 2026, equivalent to $503.63M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Texas Pacific Land (TPL) profitable?

Yes. Texas Pacific Land (TPL) reported $503.63M in net income for TTM through Q1 2026, with a net profit margin of 60%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Texas Pacific Land (TPL) spend on capital expenditures?

Texas Pacific Land (TPL) spent $57.91M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 6.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Texas Pacific Land (TPL) generate?

Texas Pacific Land (TPL) generated $493.28M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 58.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Texas Pacific Land (TPL)?

Texas Pacific Land (TPL) had an effective tax rate of 21.2% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Texas Pacific Land (TPL)?

Texas Pacific Land (TPL) reports revenue across 6 reportable product segments, led by Oil And Gas Royalties at 49.9% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Texas Pacific Land Makes Money: 2026 Visual Revenue Map

Texas Pacific Land (TPL) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 6, 2026).

Texas Pacific Land discloses geographic revenue only in annual filings. to view the full breakdown.

Texas Pacific Land (TPL) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Texas Pacific Land (TPL) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Oil And Gas Royalties	$418.60M	49.9%
Water Sales And Royalties	$177.75M	21.2%
Produced Water Royalties	$130.05M	15.5%
Easement and Sundry	$90.86M	10.8%
Land Sale	$20.94M	2.5%
Land Sales	$819.00K	0.1%
Total	$839.02M	100%

Oil And Gas Royalties$418.60M
Water Sales And Royalties$177.75M
Produced Water Royalties$130.05M
Easement and Sundry$90.86M
Land Sale$20.94M
Land Sales$819.00K
Total$839.02M

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Texas Pacific Land (TPL) reports revenue across 6 operating segments; the largest segment was Oil And Gas Royalties at 49.9%, followed by Water Sales And Royalties (21.2%) and Produced Water Royalties (15.5%).

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