Texas Pacific Land Reports Record Q3 2026 Financial and Operating Results

Executive Summary

Texas Pacific Land Corporation (NYSE: TPL) filed a Form 8-K under Items 2.02 and 7.01 announcing record financial and operating results for the third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights

• Consolidated Revenues: $273.4 million, representing a sequential increase from $246.1 million in Q2 2026.
• Net Income: $167.4 million ($2.42 per diluted share), compared to $153.9 million in Q2 2026.
• Adjusted EBITDA: $238.4 million.
• Free Cash Flow: $170.3 million.
• Operating Expenses: $65.6 million, up from $54.2 million in Q2 2026, primarily driven by higher DD&A ($6.2 million increase), G&A ($2.6 million increase), and water service-related expenses ($2.2 million increase).

Operational Highlights & Segment Performance

• Land and Resource Management Segment: Generated revenues of $201.6 million.
  • Oil and gas royalty revenue reached a record $167.3 million, up $21.7 million sequentially, supported by higher realized prices ($44.97/Boe vs. $42.17/Boe in Q2 2026) and increased royalty production of 42.3 thousand Boe/d (vs. 39.7 thousand Boe/d in Q2 2026).
  • Easements and other surface-related income increased by $12.5 million sequentially.
• Water Services and Operations Segment: Generated revenues of $71.8 million.
  • Produced water royalty revenues hit a record $41.4 million on volume of 5.5 million barrels per day.
  • Water sales experienced an $11.3 million sequential decline due to lower realized pricing, partially offset by volume growth.
• Well Inventory & Activity: As of September 30, 2026, royalty acreage held 16.8 net wells in progress (5.7 net permits, 8.6 net DUCs, 2.5 net CUPs) and 132.5 net producing wells. Wells added during the quarter had an average lateral length of ~10,623 feet.

Capital Return & Strategic Initiatives

• Dividends: Declared a quarterly cash dividend of $0.60 per share payable on December 15, 2026, to stockholders of record on December 1, 2026 (matching the $0.60 dividend paid September 15, 2026).
• Data Centers & Power: Advanced discussions and land agreements, including an agreement with Chevron U.S.A. Inc. (Project Kilby) providing land and brackish water for power generation supporting data centers in Reeves County, Texas.
• Water Infrastructure: Completed construction and initiated commissioning on Phase 2B produced water desalination facility in Orla, Texas (10,000 inlet bbl/d capacity).