Texas Pacific Land Corporation Q3 2026 Earnings Recap

TPL fell 5.4% after earnings, despite record quarterly revenue, net income and free cash flow. The likely concern is uneven near-term activity: water sales were roughly flat sequentially, while management said Permian completion activity has been slow to ramp and noted a shift in activity between regions.

Key Takeaways

• Oil production reached a quarterly record of 17,100 barrels per day; total production also set a record at 42,300 barrels of oil equivalent per day.
• SLEM revenue was $36 million, up 53% sequentially, driven by infrastructure activity across the company’s land.
• Water sales averaged 672,000 barrels per day, roughly flat sequentially, amid slow-ramping completion activity and regional shifts in Permian activity.
• Produced water royalty volumes hit a record 5.5 million barrels per day, up 14% sequentially and 27% year over year; management cited both rising water-to-oil ratios and more volumes moving across TPL land for injection.
• Natural gas price realizations improved to $2.40 per thousand cubic feet from $0.40 in the second quarter, while the Orla Phase 2b facility remained in commissioning; management hopes to flow field-produced water there by year-end.