Stock Analysis on Net
Stock Analysis on Net

Texas Pacific Land Corp. (NYSE:TPL)

This company has been moved to the archive! The financial data has not been updated since November 6, 2024.

Common-Size Balance Sheet: Assets

Texas Pacific Land Corp., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents 62.71 58.22 56.05 49.17 50.76
Accounts receivable and accrued receivables, net 11.15 11.85 12.46 8.43 10.53
Prepaid expenses and other current assets 0.25 0.85 0.40 0.23 0.00
Tax like-kind exchange escrow 0.47 0.72 0.00 0.35 0.00
Prepaid income taxes 0.00 0.55 0.00 0.00 0.00
Current assets 74.58% 72.19% 68.91% 58.17% 61.29%
Real estate acquired 11.24 12.50 14.28 18.99 17.90
Property, plant and equipment, net 7.75 9.74 10.43 13.87 14.77
Royalty interests acquired, net 4.03 5.13 5.81 7.99 4.86
Intangible assets, net 1.82 0.00 0.00 0.00 0.00
Land (surface rights) 0.00 0.00 0.00 0.00 0.00
1/16th nonparticipating perpetual royalty interest 0.00 0.00 0.00 0.00 0.00
1/128th nonparticipating perpetual royalty interest 0.00 0.00 0.00 0.00 0.00
Real estate and royalty interests assigned through the Declaration of Trust, no value assigned 0.00% 0.00% 0.00% 0.00% 0.00%
Operating lease right-of-use assets 0.16 0.29 0.24 0.43 0.52
Other assets 0.42 0.15 0.33 0.56 0.67
Noncurrent assets 25.42% 27.81% 31.09% 41.83% 38.71%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The asset composition of the organization demonstrates a significant strategic shift toward liquidity over the five-year period from 2019 to 2023. There is a pronounced transition from noncurrent, fixed assets toward current assets, primarily driven by a substantial accumulation of cash and cash equivalents.

Current Asset Dynamics
Current assets have grown from 61.29% of total assets in 2019 to 74.58% by 2023. The primary driver of this increase is the steady rise in cash and cash equivalents, which escalated from 50.76% to 62.71% of the total asset base. Accounts receivable and accrued receivables have remained relatively stable, fluctuating between 8.43% and 12.46%, indicating a consistent relationship between revenue recognition and asset size.
Noncurrent Asset Contraction
Noncurrent assets have experienced a consistent decline, falling from 38.71% in 2019 to 25.42% in 2023. This contraction is most evident in property, plant and equipment, net, which decreased from 14.77% to 7.75%, and real estate acquired, which declined from 17.90% to 11.24%. These trends suggest that fixed asset growth is not keeping pace with the overall expansion of the balance sheet, or that the company is prioritizing liquidity over physical asset acquisition.
Royalty and Intangible Assets
Royalty interests acquired, net, showed a peak in 2020 at 7.99% before trending downward to 4.03% by 2023. Additionally, intangible assets appeared as a component of the asset mix only in 2023, accounting for 1.82% of total assets, marking a departure from previous years where such assets were not recorded.
Overall Balance Sheet Trajectory
The aggregate trend indicates an increasingly liquid financial position. The balance sheet has evolved from a more balanced distribution between current and noncurrent assets toward one heavily weighted toward cash. This suggests a high capacity for immediate funding of operations, debt repayment, or opportunistic acquisitions, while the relative weight of long-term physical infrastructure and land holdings has diminished.

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