AI Takeaway
TPL delivered strong FY2025 results with revenue growing 13.1% to $798.2M and operating cash flow rising 11.3% to $545.9M, while total assets surged 30.1% to $1.62B driven by significant investing activity.
Revenue
$798.19M
++13.09% YoY
EPS (Basic)
$6.98
++6.08% YoY
Operating Income
$592.16M
++9.83% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
TPL grew total revenue 13.1% year-over-year from $705.8M to $798.2M in FY2025, reflecting continued strength in its land and resource businesses in the Permian Basin. This top-line expansion demonstrates resilient demand for TPL's royalty and water services segments.
Source: Source: 10-K Income Statement, Financial Data
Operating margin declined approximately 2.2 percentage points to 74.2% in FY2025 from 76.4% in the prior year, even as operating income grew 9.8% to $592.2M. The margin compression likely reflects higher operating costs, with D&A surging 148.5% to $62.5M, suggesting significant new asset additions.
Source: Source: 10-K Income Statement & Key Ratios, Financial Data
Investing cash outflows increased 26.3% to -$595.8M in FY2025, which substantially exceeded operating cash flow of $545.9M and drove cash balances down 60.8% to $144.8M. This aggressive investment activity contributed to total assets growing 30.1% to $1.62B and stockholders' equity rising 28.8% to $1.46B.
Source: Source: 10-K Cash Flow Statement, Financial Data
2 more insights available
Upgrade to unlockTPL's revenues are heavily tied to oil and gas production activity in the Permian Basin, making financial results highly sensitive to fluctuations in crude oil and natural gas prices. A sustained decline in commodity prices could reduce royalty income and water services demand, materially impacting revenue and profitability. The company's 74% operating margin provides some buffer, but top-line sensitivity remains a primary risk.
Source: Source: 10-K Financial Data, Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.80 versus the $1.75 analyst consensus — a +3.0% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $798.19M | $705.82M | +13.09% |
Operating Income | $592.16M | $539.14M | +9.83% |
Net Income | $481.38M | $453.96M | +6.04% |
EPS (Basic) | $6.98 | $6.58 | +6.08% |
EPS (Diluted) | $6.97 | $6.57 | +6.09% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $1.62B | $1.25B | +30.07% |
Current Assets | $319.32M | $503.37M | -36.56% |
Total Liabilities | $164.37M | $115.56M | +42.24% |
Current Liabilities | $72.6M | $46.56M | +55.93% |
Stockholders' Equity | $1.46B | $1.13B | +28.83% |
Cash & Equivalents | $144.81M | $369.83M | -60.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $545.91M | $490.67M | +11.26% |
Investing Cash Flow | $-595.85M | $-471.75M | -26.31% |
Financing Cash Flow | $-176.04M | $-378.09M | +53.44% |
Dividends Paid | $147.8M | $347.31M | -57.44% |
Share Buybacks | $8.38M | $29.16M | -71.26% |
D&A | $62.53M | $25.16M | +148.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 74.2% | 76.4% | -2.20% |
Net Margin | 60.3% | — | — |
ROE | 33.0% | — | — |
ROA | 29.7% | — | — |
Current Ratio | $4.398 | — | — |
Debt to Equity | $0.113 | — | — |
Other companies in Oil & Gas Exploration & Production
TPL delivered solid FY2025 results with revenue growing 13.1% to $798.2M and net income rising 6.0% to $481.4M. Operating cash flow increased 11.3% to $545.9M, and the company maintained an impressive 74.2% operating margin, though this was down about 2.2 percentage points from the prior year.
TPL's cash and equivalents fell 60.8% to $144.8M in FY2025 because investing cash outflows of $595.8M significantly exceeded operating cash inflows of $545.9M. This aggressive capital deployment drove total assets up 30.1% to $1.62B and caused D&A to surge 148.5% to $62.5M, suggesting substantial new asset acquisitions or development activity.
Yes, TPL paid $147.8M in dividends in FY2025, though this was 57.4% lower than the $347.3M paid in the prior year. The reduction in dividends, along with a 71.3% decline in share buybacks to $8.4M, appears to reflect a deliberate shift of capital toward investment activities.
TPL's financial health remains very strong in FY2025, with a current ratio of 4.4x, a debt-to-equity ratio of just 0.11, and stockholders' equity of $1.46B. ROE of 33.0% and ROA of 29.7% reflect a highly profitable and capital-efficient business, and the company's low leverage provides ample financial flexibility.
TPL's primary risks include heavy concentration in Permian Basin commodity-linked revenues, meaning oil and gas price declines could materially reduce royalty income. Additionally, the company deployed $595.8M in investments in FY2025 — more than its operating cash flow — which depleted cash reserves by 60.8%, and the returns on these new assets are yet to be fully demonstrated.