Texas Pacific LandTPL -1.88%90 Interest Coverage is 183.80 as of Mar. 2026, which is 98% below its 10-year median of 10,000.00. GuruFocus rates TPL with a GF Score™ of 90/100 and a GF Value™ of $369.98 (Fairly Valued). The stock has 2 warning signs investors should review. Among 727 Oil & Gas companies, Texas Pacific Land ranks better than 88.17% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Texas Pacific Land's
Operating Income
for the
three
months ended in Mar. 2026 was $182.3 Mil. Texas Pacific Land's Interest Expense for the
three
months ended in Mar. 2026 was $-1.0 Mil.
Texas Pacific Land's interest coverage for the quarter that ended in Mar. 2026 was 183.80.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Texas Pacific Land Corp has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Texas Pacific Land's Interest Coverage or its related term are showing as below:
TPL'
s Interest Coverage Range Over the Past 10 Years
Min: 371.23 Med: No Debt Max: No Debt
Current: 371.23
TPL's Interest Coverage is ranked better than 88.17% of 727
companies
in the Oil & Gas industry
Industry Median: 5.88
vs TPL: 371.23
Texas Pacific Land (NYSE:TPL) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Texas Pacific Land Interest Coverage Related Terms
Texas Pacific Land Interest Coverage Historical Data
* Premium members only.
The historical data trend for Texas Pacific Land's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Oil & Gas E&P subindustry, Texas Pacific Land's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Texas Pacific Land Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Texas Pacific Land (TPL) has a Interest Coverage of 183.80 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Texas Pacific Land and its competitors. This is 98% below median its historical median of 10,000.00. Over the past decade, Texas Pacific Land's Interest Coverage has ranged from 371.23 to 10,000.00. According to the industry distribution chart, Texas Pacific Land ranks #86 out of 727 companies in the Oil & Gas industry, placing it in the top 11.8%.
Is Texas Pacific Land's Interest Coverage too high?
Texas Pacific Land's current Interest Coverage of 183.80 is 98% below median its 10-year median of 10,000.00. Over the past 10 years, this metric has ranged from a low of 371.23 to a high of 10,000.00. The Oil & Gas industry median Interest Coverage is 5.88. Texas Pacific Land's value of 183.80 is 3025.9% above this industry median. Based on the distribution chart, Texas Pacific Land ranks #86 out of 727 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Pacific Land has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Interest Coverage compare to EQT and EXE?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #86 out of 727 companies for Interest Coverage. This places Texas Pacific Land in the top 12% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.88. Texas Pacific Land's value of 183.80 is 3025.9% above this benchmark. Historically, Texas Pacific Land's own Interest Coverage has ranged from 371.23 to 10,000.00 over the past decade. While the company's 10-year median is 10,000.00 vs. the industry median of 5.88, Texas Pacific Land has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.88, based on 727 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Pacific Land's current Interest Coverage of 183.80 is 3025.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Texas Pacific Land and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Pacific Land's current Interest Coverage is 183.80, which is 98% below median its own 10-year median of 10,000.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Pacific Land stock overvalued right now?
Based on GuruFocus' analysis, Texas Pacific Land (TPL) is currently considered Fairly Valued. The stock's GF Value™ is $369.98, compared to a current price of $407.20 — trading 10.1% above its estimated fair value. The current Interest Coverage is 183.80, which is 98% below median its 10-year median of 10,000.00 and 3025.9% above the Oil & Gas industry median of 5.88. Texas Pacific Land's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current Interest Coverage is 183.80 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Pacific Land (TPL) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Pacific Land stock appears to be overvalued.
The current stock price of $407.20 is trading 10.1% above its estimated GF Value™ of $369.98.
GuruFocus considers Texas Pacific Land to be Fairly Valued.
Key valuation signals for TPL:
Interest Coverage: 183.80 (98% below median its 10-year median of 10,000.00)
GF Value™: $369.98 vs. price of $407.20 (10.1% above fair value)
Industry Position: 3025.9% above the Oil & Gas median (#86 of 727)
No single metric tells the full story. See the TPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Texas Pacific Land Corp is mainly engaged in the sales and leases of land owned, retaining oil and gas royalties, and the overall management of the land owned. The group operates its business in two reportable segments: Land and Resource Management and Water Service and Operations. The Land and Resource Management segment, which generates maximum revenue, focuses on managing its several surface acres of land and its oil and gas royalty interests, principally concentrated in the Permian Basin. The revenue streams of this segment consist of royalties from oil and gas, revenues from easements and commercial leases, and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin.
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