Texas Pacific Land Corporation Q3 2025 Earnings Recap

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.