Texas Pacific Land Corporation Announces Fourth Quarter and Full Year 2025 Results

DALLAS--( BUSINESS WIRE)--Texas Pacific Land Corporation (NYSE: TPL) (the “Company,” “TPL,” “we,” “our” or “us”), one of the largest landowners in the State of Texas with surface and royalty ownership that provides revenue opportunities through the support of energy production, today announced its financial and operating results for the fourth quarter and full year of 2025.

Fourth Quarter 2025 Highlights

Full Year 2025 Highlights

(1) Total may not foot due to rounding.

(2) Numbers reflected exclude recent royalty acquisition.

(3) Reconciliations of non-GAAP performance measures are provided in the tables below.

“Fourth quarter 2025 represents an excellent finish to a record year for TPL,” said Tyler Glover, Chief Executive Officer of the Company. “Oil and gas royalty production, water sales volumes, and produced water royalties volumes set records for this quarter and for the fiscal year. We also delivered fiscal year records for consolidated revenue, net income, and free cash flow. Our differentiated scale across royalties, land, and water enabled us to expand capture rates and generate growth despite broader commodity price headwinds. In addition, we have made substantial progress with next-generation opportunities in data centers and produced water desalination, and we plan to continue deploying resources to accelerate commercialization. TPL still maintains a net cash position and a fully undrawn $500 million credit facility, providing the Company ample liquidity to invest countercyclically across royalty, land, and water and to expand shareholder return of capital. We remain steadfastly focused on maximizing long-term intrinsic value per share, and the opportunity set in front of us today across our legacy and next-gen businesses is robust as ever.”

Financial Results for the Fourth Quarter of 2025 - Sequential

The Company reported net income of $123.3 million for the fourth quarter of 2025 compared to net income of $121.2 million for the third quarter of 2025.

Total revenues for the fourth quarter of 2025 were $211.6 million compared to $203.1 million for the third quarter of 2025. The increase in total revenues was primarily due to a $16.2 million increase in water sales and a $3.9 million increase in easements and other surface-related income, partially offset by a $12.0 million decrease in oil and gas royalty revenue compared to the third quarter of 2025. The Company’s share of production was 37.5 thousand Boe per day for the fourth quarter of 2025 compared to 36.3 thousand Boe per day for the third quarter of 2025, and the Company’s average realized price was $29.33 per Boe in the fourth quarter of 2025 compared to $34.10 per Boe in the third quarter of 2025. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.

Total operating expenses were $62.3 million for the fourth quarter of 2025 compared to $54.0 million for the third quarter of 2025. The increase in operating expenses was principally related to a $7.0 million increase in depreciation, depletion and amortization expense and a $1.1 million increase in water service-related expenses during the fourth quarter of 2025 compared to the third quarter of 2025.

Financial Results for the Year Ended December 31, 2025

The Company reported net income of $481.4 million for the year ended December 31, 2025 compared to net income of $454.0 million for the year ended December 31, 2024.

Total revenues for the year ended December 31, 2025 were $798.2 million compared to $705.8 million for the year ended December 31, 2024. The increase in total revenues was primarily due to a $38.3 million increase in oil and gas royalty revenue, a $20.1 million increase in produced water royalties, a $19.0 million increase in water sales, and an $18.5 million increase in easements and other surface-related income compared to the same period of 2024. The Company’s share of production was 34.6 thousand Boe per day for the year ended December 31, 2025 compared to 26.8 thousand Boe per day for the same period of 2024, and the average realized price was $34.18 per Boe for the year ended December 31, 2025 compared to $39.87 per Boe for the same period of 2024. Produced water royalties increased due to increased produced water volumes, while water sales increased due to both increased volumes and pricing. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.

Total operating expenses were $206.0 million for the year ended December 31, 2025 compared to $166.7 million for the same period of 2024. The increase in operating expenses was principally related to a $33.0 million increase in depletion expense associated with oil and gas royalty interests acquired during the second half of 2025 and 2024.

Quarterly Dividend Declared

On February 10, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.60 per share, payable on March 16, 2026 to stockholders of record at the close of business on March 2, 2026. This represents a 12.5% increase from the prior quarter regular dividend.

Conference Call and Webcast Information

The Company will hold a conference call on Thursday, February 19, 2026 at 9:30 a.m. Central Time to discuss fourth quarter and year end results. A live webcast of the conference call will be available on the Investors section of the Company’s website at www.TexasPacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

The conference call can also be accessed by dialing 1-877-407-4018 or 1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13757644. The telephone replay will be available starting shortly after the call through March 5, 2026.

About Texas Pacific Land Corporation

Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 882,000 acres of land, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provides revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fee payments for use of the Company’s land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and/or treated produced water, revenue from the Company’s oil and gas royalty interests, and revenue related to saltwater disposal on the Company’s land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits principally related to a variety of land uses including, but not limited to, midstream infrastructure projects and hydrocarbon processing facilities.

Visit TPL at www.TexasPacific.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this news release are, and certain statements made on the related conference call may be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on TPL’s beliefs, as well as assumptions made by, and information currently available to, TPL, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,” “expect” and similar expressions or the negative of such terms identify forward-looking statements. Forward-looking statements include, but are not limited to, references to strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects; statements regarding anticipated benefits of recent acquisitions or the Permian Basin’s future drilling inventory and energy resources; and other statements that are not historical facts. You should not place undue reliance on forward-looking statements. Although TPL believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, TPL may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may differ materially from those set forth in the forward-looking statements due to a number of factors, including, but not limited to: the initiation or outcome of potential litigation; any changes in general economic and/or industry specific conditions; and the other risks discussed in TPL’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You can access TPL’s filings with the Securities and Exchange Commission (“SEC”) through the SEC’s website at www.sec.gov and TPL strongly encourages you to do so. These forward-looking statements are based only on information available to TPL and speak only as of the date hereof. Except as required by applicable law, TPL undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.

FINANCIAL AND OPERATIONAL RESULTS

(unaudited)

Oil and Gas Activity

The table below provides financial and operational data by royalty stream:

Three Months Ended

Years Ended

December 31,

2025

September 30,

2025

December 31,

2025

December 31,

2024

Company’s share of production volumes (1):

Oil (MBbls)

1,320

1,284

4,936

4,118

Natural gas (MMcf)

6,328

6,142

23,359

17,074

NGL (MBbls)

1,078

1,031

3,784

2,841

Equivalents (MBoe)

3,453

3,338

12,613

9,804

Equivalents per day (MBoe/d)

37.5

36.3

34.6

26.8

Oil and gas royalty revenue (in thousands):

Oil royalties

74,998

79,860

304,930

298,074

Natural gas royalties

3,856

11,441

37,432

18,512

NGL royalties

17,867

17,404

69,315

56,745

Total oil and gas royalties

96,721

108,705

411,677

373,331

Realized prices (1):

Oil ($/Bbl)

59.48

65.14

64.69

75.80

Natural gas ($/Mcf)

0.66

2.01

1.73

1.17

NGL ($/Bbl)

17.92

18.25

19.81

21.60

Equivalents ($/Boe)

29.33

34.10

34.18

39.87

Term

Definition

Bbl

One stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil, condensate or NGL.

Boe

One barrel of oil equivalent.

MBbls

One thousand barrels of crude oil, condensate or NGL.

MBoe

One thousand Boe.

MBoe/d

One thousand Boe per day.

Mcf

One thousand cubic feet of natural gas.

MMcf

One million cubic feet of natural gas.

NGL

Natural 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:

Three Months Ended

Years Ended

December 31,

2025

September 30,

2025

December 31,

2025

December 31,

2024

Water volumes (in MBbls) (1):

Water sales

92,072

71,332

278,564

269,281

Produced water royalties

443,578

400,804

1,566,588

1,257,246

Water volumes in barrels per day (in MBbls/d) (2):

Water sales

1,001

775

763

736

Produced water royalties

4,822

4,357

4,292

3,435

Water revenue (in thousands):

Water sales

60,733

44,578

169,701

150,724

Produced water royalties

33,513

32,268

124,218

104,123

MBbl = 1 thousand barrels of water.

(2)

MBbl/d = 1 thousand barrels of water per day.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except share and per share amounts) (unaudited)

Three Months Ended

Years Ended

December 31,

2025

September 30,

2025

December 31,

2025

December 31,

2024

Revenues:

Oil and gas royalties

96,721

108,705

411,677

373,331

Water sales

60,733

44,578

169,701

150,724

Produced water royalties

33,513

32,268

124,218

104,123

Easements and other surface-related income

20,612

16,715

91,775

73,257

Land sales

—

819

4,388

Total revenues

211,579

203,085

798,190

705,823

Expenses:

Salaries and related employee expenses

14,894

14,387

57,925

53,621

Water service-related expenses

17,523

16,428

53,528

46,124

General and administrative expenses

6,424

5,591

23,780

34,483

Depreciation, depletion and amortization

21,930

14,963

62,533

25,162

Ad valorem and other taxes

1,562

2,625

8,263

7,295

Total operating expenses

62,333

53,994

206,029

166,685

Operating income

149,246

149,091

592,161

539,138

Interest expense

(690

)

—

(690

)

—

Other income, net

3,209

6,088

18,858

39,683

Income before income taxes

151,765

155,179

610,329

578,821

Income tax expense

28,419

33,941

128,953

124,861

Net income

123,346

121,238

481,376

453,960

Net income per share of common stock

Basic

1.79

1.76

6.98

6.58

Diluted

1.79

1.76

6.97

6.57

Weighted average number of shares of common stock outstanding

Basic

68,938,230

68,954,649

68,949,240

68,958,591

Diluted

69,020,805

69,030,773

69,027,492

69,059,252

SEGMENT OPERATING RESULTS

(dollars in thousands) (unaudited)

Three Months Ended

December 31,

2025

September 30,

2025

Land and Resource Management

Water Services and Operations

Consolidated

Land and Resource Management

Water Services and Operations

Consolidated

Revenues:

Oil and gas royalties

96,721

—

96,721

108,705

—

108,705

Water sales

—

60,733

—

44,578

Produced water royalties

—

33,513

—

32,268

Easements and other surface-related income

16,662

3,950

20,612

12,741

3,974

16,715

Land sales

—

819

—

819

Total revenues

113,383

98,196

211,579

122,265

80,820

203,085

Expenses:

Salaries and related employee expenses

7,457

7,437

14,894

7,298

7,089

14,387

Water service-related expenses

—

17,523

—

16,428

General and administrative expenses

3,966

2,458

6,424

3,431

2,160

5,591

Depreciation, depletion and amortization

17,276

4,654

21,930

10,453

4,510

14,963

Ad valorem and other taxes

1,551

1,562

2,614

2,625

Total operating expenses

30,250

32,083

62,333

23,796

30,198

53,994

Operating income

83,133

66,113

149,246

98,469

50,622

149,091

Interest expense

(552

)

(138

)

(690

)

—

Other income, net

2,527

682

3,209

4,827

1,261

6,088

Income before income taxes

85,108

66,657

151,765

103,296

51,883

155,179

Income tax expense

15,566

12,853

28,419

22,536

11,405

33,941

Net income

69,542

53,804

123,346

80,760

40,478

121,238

SEGMENT OPERATING RESULTS (Continued)

(dollars in thousands) (unaudited)

Years Ended

December 31,

2025

December 31,

2024

Land and Resource Management

Water Services and Operations

Consolidated

Land and Resource Management

Water Services and Operations

Consolidated

Revenues:

Oil and gas royalties

411,677

—

411,677

373,331

—

373,331

Water sales

—

169,701

—

150,724

Produced water royalties

—

124,218

—

104,123

Easements and other surface-related income

78,230

13,545

91,775

63,074

10,183

73,257

Land sales

819

—

819

4,388

—

4,388

Total revenues

490,726

307,464

798,190

440,793

265,030

705,823

Expenses:

Salaries and related employee expenses

29,184

28,741

57,925

27,493

26,128

53,621

Water service-related expenses

—

53,528

—

46,124

General and administrative expenses

14,358

9,422

23,780

25,531

8,952

34,483

Depreciation, depletion and amortization

44,555

17,978

62,533

10,968

14,194

25,162

Ad valorem and other taxes

8,218

8,263

7,257

7,295

Total operating expenses

96,315

109,714

206,029

71,249

95,436

166,685

Operating income

394,411

197,750

592,161

369,544

169,594

539,138

Interest expense

(552

)

(138

)

(690

)

—

Other income, net

14,926

3,932

18,858

31,707

7,976

39,683

Income before income taxes

408,785

201,544

610,329

401,251

177,570

578,821

Income tax expense

86,370

42,583

128,953

86,350

38,511

124,861

Net income

322,415

158,961

481,376

314,901

139,059

453,960

NON-GAAP PERFORMANCE MEASURES AND DEFINITIONS

In addition to amounts presented in accordance with GAAP, we also present certain supplemental non-GAAP performance measurements. These measurements are not to be considered more relevant or accurate than the measurements presented in accordance with GAAP. In compliance with the requirements of the SEC, our non-GAAP measurements are reconciled to net income, the most directly comparable GAAP performance measure. For all non-GAAP measurements, neither the SEC nor any other regulatory body has passed judgment on these non-GAAP measurements.

EBITDA, Adjusted EBITDA and Free Cash Flow

EBITDA is a non-GAAP financial measurement of earnings before interest expense, taxes, depreciation, depletion and amortization. The purpose of presenting EBITDA is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis.

The purpose of presenting Adjusted EBITDA is to highlight earnings without non-cash activity such as share-based compensation and other non-recurring or unusual items, if applicable. Additionally, Adjusted EBITDA is a metric used by the compensation committee of our Board to evaluate the Company’s performance in determining the short-term and long-term incentive compensation of our Named Executive Officers on an annual basis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation less pension curtailment and settlement gain. The pension curtailment and settlement gain are related to a buyout by a third party of defined benefit obligations under our pension plan and the subsequent freezing of our pension plan, both of which occurred in the fourth quarter of 2024. We have excluded the pension curtailment and settlement gain from the calculation of Adjusted EBITDA as such gain is a non-recurring item and is not related to our core business.

The purpose of presenting free cash flow is to provide investors a metric to measure the funds available for investing in future acquisitions and returning capital to our stockholders through dividends and share repurchases after current income tax expense and purchases of fixed assets. Additionally, free cash flow is a metric used by the compensation committee of our Board to evaluate the Company’s performance in determining the short-term and long-term incentive compensation of our Named Executive Officers. To calculate free cash flow, net income is adjusted by adding back income tax expense, depreciation, depletion and amortization and employee share-based compensation, less the cash outflows of current income tax expenses, purchases of fixed assets and pension curtailment and settlement gain.

We have presented EBITDA, Adjusted EBITDA and free cash flow because we believe that these metrics are useful supplements to net income in analyzing the Company’s operating performance, ability to fund future acquisitions, ability to return capital to our stockholders and explaining how our Named Executive Officers are compensated. Our definitions of EBITDA, Adjusted EBITDA and free cash flow may differ from computations of similarly titled measures of other companies.

The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended December 31, 2025 and September 30, 2025 and for the years ended December 31, 2025 and December 31, 2024 (in thousands):

Three Months Ended

Years Ended

December 31,

2025

September 30,

2025

December 31,

2025

December 31,

2024

Net income

123,346

121,238

481,376

453,960

Add:

Interest expense

690

—

690

—

Income tax expense

28,419

33,941

128,953

124,861

Depreciation, depletion and amortization

21,930

14,963

62,533

25,162

EBITDA

174,385

170,142

673,552

603,983

Add (deduct):

Employee share-based compensation

3,756

3,493

13,817

11,364

Pension curtailment and settlement gain

—

(4,616

)

Adjusted EBITDA

178,141

173,635

687,369

610,731

The following table presents a reconciliation of net income to free cash flow for the three months ended December 31, 2025 and September 30, 2025 and for the years ended December 31, 2025 and December 31, 2024 (in thousands):

Three Months Ended

Years Ended

December 31,

2025

September 30,

2025

December 31,

2025

December 31,

2024

Net income

123,346

121,238

481,376

453,960

Add (deduct):

Income tax expense

28,419

33,941

128,953

124,861

Depreciation, depletion and amortization

21,930

14,963

62,533

25,162

Employee share-based compensation

3,756

3,493

13,817

11,364

Pension curtailment and settlement gain

—

(4,616

)

Current income tax expense

(26,968

)

(30,166

)

(122,398

)

(120,257

)

Purchases of fixed assets

(28,653

)

(18,601

)

(59,531

)

(29,696

)

(Increase) decrease in accounts payable related to purchases of fixed assets

(2,973

)

(2,005

)

(6,417

)

273

Free cash flow

118,857

122,863

498,333

461,051