How Investors Are Reacting To Texas Pacific Land (TPL) Record Revenues, Major Basin Acquisition and Stock Split

Texas Pacific Land Corporation recently reported record third-quarter 2025 revenues of US$203.09 million, completed a US$474 million acquisition of 17,300 net royalty acres in the Midland Basin, secured a US$500 million revolving credit facility, and announced a 3-for-1 stock split expected in December 2025. The company also achieved record water sales, closed on its inaugural credit facility to enhance liquidity, and continues to expand its portfolio, underscoring a period of significant operational and financial activity. Let's explore how Texas Pacific Land's major royalty acquisition and credit facility affect its long-term investment outlook and growth prospects.

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Texas Pacific Land Investment Narrative Recap

Investors who believe in Texas Pacific Land's long-term ability to generate recurring royalty income, expand water services, and manage high-quality acreage in the Permian Basin may view the latest record revenues and substantial royalty acquisition as strengthening core business momentum. However, the impact on the biggest short-term catalyst, sustained royalty production growth, is significant only if these newly acquired acres quickly contribute to output, while geographic concentration in the Permian remains the central risk for the business. Among recent announcements, Texas Pacific Land’s new US$500 million revolving credit facility is especially relevant, as it enhances financial flexibility for future capital allocation or acquisitions, supporting the company's growth agenda in a capital-intensive sector. This facility also bolsters TPL’s ability to respond quickly to opportunities arising from increased industry activity, a key factor in maintaining production momentum against the backdrop of potential localized headwinds. Yet, despite these financial strengths, investors should not overlook how concentrated Permian Basin exposure leaves the company vulnerable if ...

Read the full narrative on Texas Pacific Land (it's free!)

Texas Pacific Land's narrative projects $895.3 million in revenue and $610.3 million in earnings by 2028. This requires 7.2% annual revenue growth and a $150.1 million earnings increase from $460.2 million currently.

Uncover how Texas Pacific Land's forecasts yield a $921.93 fair value, a 6% downside to its current price.

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Exploring Other PerspectivesTPL Community Fair Values as at Nov 2025

The Simply Wall St Community’s fair value estimates for Texas Pacific Land range widely from US$401.61 to US$1,790.78 across 13 distinct analyses. While many see considerable upside, your view should also account for ongoing dependency on Permian Basin activity, which shapes long-term performance outlooks.

Explore 13 other fair value estimates on Texas Pacific Land - why the stock might be worth less than half the current price!

Build Your Own Texas Pacific Land Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Texas Pacific Land research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision. Our free Texas Pacific Land research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Texas Pacific Land's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TPL.

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