Texas Pacific Land Corp., current enterprise value calculation

Current share price (P)	$1,329.62
No. shares of common stock outstanding	22,974,914
US$ in thousands
Common equity (market value)¹	30,547,905)
Add: Preferred stock, $0.01 par value; none outstanding (per books)	—)
Total equity	30,547,905)
Add: Total debt (book value)	—)
Total equity and debt	30,547,905)
Less: Cash and cash equivalents	725,169)
Enterprise value (EV)	29,822,736)

Based on: 10-K (reporting date: 2023-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 1,329.62 × 22,974,914

Texas Pacific Land Corp., EV calculation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Share price^1, 2	$507.46	$596.28	$337.37	$370.62	$226.07
No. shares of common stock outstanding¹	23,005,266	23,086,488	23,236,125	23,268,468	23,268,468
US$ in thousands
Common equity (market value)³	11,674,252)	13,766,011)	7,839,171)	8,623,760)	5,260,303)
Add: Preferred stock, $0.01 par value; none outstanding (book value)	—)	—)	—)	—)	—)
Total equity	11,674,252)	13,766,011)	7,839,171)	8,623,760)	5,260,303)
Add: Total debt (book value)	—)	—)	—)	—)	—)
Total equity and debt	11,674,252)	13,766,011)	7,839,171)	8,623,760)	5,260,303)
Less: Cash and cash equivalents	725,169)	510,834)	428,242)	281,046)	303,645)
Enterprise value (EV)	10,949,083)	13,255,177)	7,410,929)	8,342,714)	4,956,658)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Texas Pacific Land Corp. Annual Report.

³ 2023 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 507.46 × 23,005,266

The financial trajectory from 2019 to 2023 is characterized by significant volatility and a general upward trend in valuation, peaking in 2022 before experiencing a correction in 2023. Enterprise value and market capitalization moved in close correlation throughout the five-year period, reflecting a valuation driven primarily by equity markets rather than debt fluctuations.

Capital Structure and Debt Profile: A consistent alignment is observed between common equity market value, total equity, and total equity and debt across all reported periods. This identity indicates a capital structure devoid of significant long-term debt, suggesting that the organization operates without leverage.
Enterprise Value Trends: Enterprise value grew from 4,956,658 thousand US dollars in 2019 to a peak of 13,255,177 thousand US dollars in 2022, representing a substantial increase in the total value of the business. A subsequent decline to 10,949,083 thousand US dollars in 2023 indicates a contraction in valuation, although the 2023 figure remains significantly higher than the 2019 baseline.
Relationship Between Market Value and Enterprise Value: Throughout the analyzed period, enterprise value remained consistently lower than the market value of common equity. Given the absence of debt, this negative delta indicates a substantial net cash position, as enterprise value is calculated by adding debt and subtracting cash from the market capitalization. The gap between these two metrics widened progressively from 2019 to 2023, suggesting an accumulation of cash reserves over time.
Valuation Volatility: The data reveals a period of instability between 2020 and 2022. After an initial surge in 2020, there was a moderate decline in 2021, followed by a sharp acceleration in value during 2022. This volatility suggests that the organization's enterprise value is highly sensitive to external market drivers or specific asset reappraisals.

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Texas Pacific Land Corp. (NYSE:TPL)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)