Texas Pacific Land Corporation Earnings Recaps
Q1 2026
May 8, 2026
Shares of Texas Pacific Land Corporation declined 6.1% following the earnings release, reflecting investor disappointment likely driven by cautious commentary on near-term operator activity and uncertainty around the duration of oil supply disruption, which tempered optimism for short-term volume growth despite higher oil prices.
Key takeaways
- Oil and gas royalty production averaged ~37,001 BOE/day, roughly flat sequentially and up ~19% year over year.
- Water sales and produced water royalties reached the second-highest volume levels in company history.
- Management highlighted only a marginal increase in operator activity in the Permian Basin despite elevated crude prices, citing ongoing industry uncertainty.
- The company remains fully unhedged and exposed to elevated oil prices, with a strong balance sheet maintained throughout prior price declines.
- Progress continues on NextGen initiatives, including a $43 million land sale tied to a major power and data center development, though broader commercial details remain limited.
Q3 2025
Nov 7, 2025
Texas Pacific Land Corporation achieved record revenue of over $200 million in Q3 2025, driven by substantial growth in oil and gas royalties and water sales, despite challenging benchmark pricing.
Key takeaways
- Oil and gas royalty production reached a record 36,300 barrels of oil equivalent per day, marking a 28% year-over-year increase.
- Water sales revenue soared to $45 million, representing a 74% sequential growth and a 23% increase year-over-year.
- Produced water royalty revenues grew to $32 million, up 16% year-over-year.
- The company's strategy of acquiring mineral and royalty interests is yielding a mid-teens pretax cash flow yield.
- TPL's investments in water infrastructure position it as a key player in the Permian Basin, solidifying market share despite industry headwinds.