Results
TEXAS PACIFIC LAND CORPORATION ANNOUNCES THIRD QUARTER RESULTS
– Achieved Record Consolidated Revenue, Net Income and Free Cash Flow (1)
– Achieved Record Quarterly Oil and Gas Royalty Revenue and Production
– Earnings Call to be Held Thursday, November 5, 2026 at 9:30 am CT
DALLAS, TX (November 4, 2026) – Texas Pacific Land Corporation (NYSE: TPL) (the “Company,” “TPL,” “we,” “our,” or “us”), one of the largest land and royalty owners in the State of Texas with surface and royalty ownership that provides revenue opportunities through the support of energy production and related industries, today announced its financial and operating results for the third quarter of 2026.
“Our third quarter results were the strongest in TPL’s history with new records set across our business,” said Tyler Glover, Chief Executive Officer of the Company.
“TPL again generated record revenue, net income, and free cash flow.
Our royalty acreage benefited from robust development activity, elevated oil prices, and improved gas realizations, driving record oil and gas royalty revenue.
Pipeline easement revenue was strong as operators expanded development of midstream infrastructure.
The continued trend of growing Permian produced water supported record produced water royalty volumes and revenues.
Finally, our efforts towards data centers, power generation, and produced water desalination and beneficial reuse continue to progress, and we are steadfastly working to advance those into meaningful commercial outcomes.”
Third Quarter 2026 Highlights
Achieved record performance results, including:
Oil and gas royalty revenue of $167.3 million and oil and gas royalty production of 42.3 thousand barrels of oil equivalent (“Boe”) per day
Produced water royalty revenue of $41.4 million and produced water royalty volumes of 5.5 million barrels (“bbl”) per day
Land and Resource Management segment revenues of $201.6 million
Consolidated revenues of $273.4 million
Consolidated net income of $167.4 million, or $2.42 per share (diluted)
Adjusted EBITDA (1) of $238.4 million
Free cash flow (1) of $170.3 million
Water Services and Operations segment revenues of $71.8 million
As of September 30, 2026, TPL’s royalty acreage had an estimated 5.7 net well permits, 8.6 net drilled but uncompleted wells (“DUCs”), and 2.5 net completed but not producing wells (“CUPs”), totaling 16.8 net wells.
(2) TPL had 132.5 net producing wells as of September 30, 2026, and net producing wells added during the quarter had an average lateral length of approximately 10,623 feet.
Quarterly cash dividend of $0.60 per share was paid on September 15, 2026
Nine Months Ended September 30, 2026 Highlights
Oil and gas royalty production of 39.7 thousand Boe per day
Water sales revenue of $115.0 million
Produced water royalty revenue of $112.0 million
Land and Resource Management segment revenues of $519.0 million
Water Services and Operations segment revenues of $237.3 million
Consolidated net income of $464.2 million, or $6.73 per share (diluted)
Adjusted EBITDA (1) of $635.4 million
Free cash flow (1) of $462.3 million
$124.6 million of total cash dividends paid through September 30, 2026
$122.7 million of aggregate land acquisitions in Shackelford and Jones Counties, Texas, in connection with our data center and power generation initiatives, and in Winkler and Reeves Counties, Texas.
Completed construction and commenced commissioning of the Phase 2B produced water desalination facility in Orla, Texas with anticipated capacity of 10,000 inlet barrels per day.
Announced an agreement with Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX) (“Chevron”) to provide land and brackish water resources for Chevron’s recently announced development known as Project Kilby, involving a large-scale power generation facility Chevron is developing to support a customer data center in Reeves County, Texas.
On May 5, 2026, TPL’s board of directors (the “Board”) appointed Peter Doyle to the Board.
Mr. Doyle is a co-founder and the Co-Chief Executive Officer of Horizon Kinetics, which, through various owned subsidiaries, is TPL’s largest stockholder.
(1) Reconciliations of non-GAAP performance measures are provided in the tables below.
(2) Total may not foot due to rounding.
Financial Results for the Third Quarter of 2026 - Sequential
The Company reported net income of $167.4 million for the third quarter of 2026 compared to net income of $153.9 million for the second quarter of 2026.
8Total revenues for the third quarter of 2026 were $273.4 million compared to $246.1 million for the second quarter of 2026.
The increase in total revenues was primarily due to a $21.7 million increase in oil and gas royalty revenue, a $12.5 million increase in easements and other surface-related income, and a $4.3 million increase in produced water royalties, partially offset by an $11.3 million decrease in water sales compared to the second quarter of 2026.
For oil and gas royalty revenue, the Company’s average realized price was $44.97 per Boe in the third quarter of 2026 compared to $42.17 per Boe in the second quarter of 2026, and the Company’s share of production was 42.3 thousand Boe per day for the third quarter of 2026 compared to 39.7 thousand Boe per day for the second quarter of 2026.
3Water sales decreased in the third quarter of 2026 compared to the second quarter of 2026 due to a decrease in average realized pricing, partially offset by an increase in water sales volumes.
TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.
Total operating expenses were $65.6 million for the third quarter of 2026 compared to $54.2 million for the second quarter of 2026.
6The increase in operating expenses was principally related to a $6.2 million increase in depreciation, depletion and amortization expense, a $2.6 million increase in general and administrative expenses, and a $2.2 million increase in water service-related expenses during the third quarter of 2026 compared to the second quarter of 2026.
Financial Results for the Nine Months Ended September 30, 2026 - Year Over Year
The Company reported net income of $464.2 million for the nine months ended September 30, 2026 compared to net income of $358.0 million for the nine months ended September 30, 2025.
1Total revenues for the nine months ended September 30, 2026 were $756.3 million compared to $586.6 million for the nine months ended September 30, 2025.
7The increase in total revenues was primarily due to a $116.1 million increase in oil and gas royalty revenue, a $21.3 million increase in produced water royalties, a $20.2 million increase in land sales, a $6.1 million increase in water sales, and a $6.0 million increase in easements and other surface-related income during the nine months ended September 30, 2026 compared to the same period of 2025.
5The Company’s share of oil and gas production was 39.7 thousand Boe per day for the nine months ended September 30, 2026 compared to 33.6 thousand Boe per day for the same period of 2025, and the Company’s average realized price was $41.60 per Boe for the nine months ended September 30, 2026 compared to $36.01 per Boe for the same period of 2025.
Produced water royalties increased due to increased produced water volumes, and water sales increased primarily due to increased water sales volumes.
TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.
4Total operating expenses were $174.3 million for the nine months ended September 30, 2026 compared to $143.7 million for the same period of 2025.
2The increase in operating expenses was principally related to a $12.9 million increase in depreciation, depletion and amortization, a $9.9 million increase in general and administrative expenses, a $4.7 million increase in salaries and related employee expenses, and a $3.7 million increase in water service-related expenses during the nine months ended September 30, 2026 compared to the same period of 2025.
Quarterly Dividend Declared
On November 2, 2026, the Board declared a quarterly cash dividend of $0.60 per share, payable on December 15, 2026 to stockholders of record at the close of business on December 1, 2026.
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Texas Pacific Land Corporation is one of the largest land and royalty owners in the State of Texas, with the majority of its ownership concentrated in the Permian Basin.
The Company is not an oil and gas producer, but its land and royalty ownership provides revenue opportunities throughout the life cycle of a well.
These revenue opportunities include providing pipeline, utility, wellbore, and commercial easements/leases; monetizing caliche and materials resources; supplying source and recycled/treated produced water for well completions; allowing access to subsurface pore space; granting produced water crossing rights; and monetizing oil and gas royalty and mineral interests.
Visit TPL at www.TexasPacific.com.
that are not historical facts.
FINANCIAL AND OPERATIONAL RESULTS
(unaudited)
Oil and Gas Activity
The table below provides financial and operational data by royalty stream:
(1)TermDefinition
BblOne stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil, condensate or NGL.
BoeOne barrel of oil equivalent.
MBblsOne thousand barrels of crude oil, condensate or NGL.
MBoeOne thousand Boe.
MBoe/dOne thousand Boe per day.
McfOne thousand cubic feet of natural gas.
MMcfOne million cubic feet of natural gas.
NGLNatural gas liquids.
Hydrocarbons found in natural gas that may be extracted as liquefied petroleum gas and natural gasoline.
Water Services and Operations Activity
The table below provides financial and operational data for water sales and produced water royalties:
(1)MBbl = 1 thousand barrels of water.
(2)MBbl/d = 1 thousand barrels of water per day.
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