TPL

Texas Pacific Land’s second quarter was marked by strong year-over-year growth but was met with a negative market reaction, reflecting concerns over the company’s revenue miss relative to analyst expectations. Management attributed quarterly performance to record royalty production in oil and gas, supported by higher realized commodity prices and increasing demand for produced water royalty volumes. CEO Tyler Glover emphasized that “our unhedged royalty position allowed us to benefit fully from the strong oil price environment,” and highlighted continued expansion into power and data center infrastructure as notable contributors to the company’s results. Is now the time to buy TPL? Find out in our full research report (it’s free). Revenue: $246.1 million vs analyst estimates of $249.6 million (31.2% year-on-year growth, 1.4% miss) EPS (GAAP): $2.23 vs analyst estimates of $2.18 (2.1% beat) Adjusted EBITDA: $215.6 million vs analyst estimates of $212 million (87.6% margin, 1.7% beat) Operating Margin: 78%, up from 76.6% in the same quarter last year Market Capitalization: $25.17 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Derrick Whitfield (Texas Capital) asked about the revenue potential and value chain from the Shackelford and Jones County land acquisition. CEO Tyler Glover explained that the company plans to replicate its capital-light, multi-vertical approach, capturing value from land, water, and aggregates throughout the project life cycle. Whitfield (Texas Capital) followed up on market demand for produced water desalination in data center chip cooling. Executive Vice President Robert Crain described “huge” interest from hyperscalers and AI labs, noting the appeal of water sources not part of the natural hydrologic cycle for cooling applications. Timothy Rezvan (KeyBanc Capital Markets) questioned whether future sizable land acquisitions are likely. Glover stated that while the core focus is on developing existing assets, the company is open to external opportunities if they serve growing power and compute demand. Rezvan (KeyBanc Capital Markets) inquired about the sustainability of produced water royalty pricing. Glover said price escalators are built into contracts and expects value to increase with greater demand for pore space, though mix shifts could impact royalty rates in the near term. Hsu-Lei Huang (Tudor, Pickering) asked about the lack of recent share buybacks. CFO Chris Steddum responded that capital is being directed toward growth opportunities, but buybacks remain an option if attractive in the future. In the coming quarters, the StockStory team will be monitoring (1) the pace and scale of definitive agreements with hyperscale data center and power partners, (2) commercial ramp-up and customer adoption at the Orla Phase 2b desalination facility, and (3) further expansion initiatives beyond the Permian Basin, including integration of new land assets. Execution on these projects will be key to assessing the company’s diversification strategy. Texas Pacific Land currently trades at $365.77, down from $381.88 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:30 a.m. ET Vice President of Finance and Investor Relations - Shawn Amini Chief Executive Officer - Tyler Glover Chief Financial Officer - Chris Steddum Executive Vice President of Texas Pacific Water Resources - Robert Crain Operator: Greetings, and welcome to the Texas Pacific Land Corporation Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Shawn Amini, Vice President of Finance and Investor Relations. Please go ahead. Shawn Amini: Thank you for joining us today for Texas Pacific Land Corporation's Second Quarter 2026 Earnings Conference Call. Yesterday afternoon, the company released its financial results and filed its Form 10-Q with the Securities and Exchange Commission, which is available on the Investors section of the company's website at www.texaspacific.com. As a reminder, remarks made on today's conference call may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today. We do not undertake any obligation to update our forward-looking statements in light of new information or future events. For a more detailed discussion of the factors that may affect the company's results, please refer to our earnings release for this quarter and to our recent SEC filings. During this call, we will also be discussing certain non-GAAP financial measures. More information and reconciliations about these non-GAAP financial measures are contained in our earnings release and SEC filings. Please also note, we may at times refer to our company by its stock ticker, TPL. This morning's conference call is hosted by TPL's Chief Executive Officer, Ty Glover; TPL's Chief Financial Officer, Chris Steddum; and Executive Vice President of Texas Pacific Water Resources, Robert Crain. Management will make some prepared comments, after which we will open the call for questions. Now I will turn the call over to Ty. Tyler Glover: Good morning, everyone, and thank you for joining us today. This quarter, we delivered exceptional results across major financial and operating metrics and achieved significant milestones towards key growth initiatives. TPL generated record quarterly total revenue, net income and free cash flow. These results were supported by record oil and gas royalty production and produced water royalty volumes. Oil and gas royalty production averaged approximately 39,700 barrels of oil equivalent per day, up 7% sequentially and 20% year-over-year. In addition, our unhedged royalty position allowed us to benefit fully from the strong oil price environment. Produced water royalty volumes were 4.9 million barrels per day during the quarter, which represents growth of 6% sequentially and 15% year-over-year, driven by strong demand for TPL's in-basin and out-of-basin pore space. Water sales volumes of 663,000 barrels per day represents a 19% decline sequentially and a 38% increase year-over-year. Second quarter water sales volumes have been impacted by weak in-basin natural gas prices as operators have shifted some development away from the Delaware Basin. However, substantial new gas pipeline capacity enters service over the next few quarters, and we would expect some mix shift towards the Delaware as local in-basin gas price differentials improve. For SLEM, revenues of $24 million, which represents a 37% sequential increase, were driven by strong performance for pipeline and wellbore easements. With respect to our data center and power generation efforts, we disclosed that a previously announced land sale and water supply agreement was related to Project Kilby, which is a large-scale power generation facility Chevron is developing to support a customer data center in Reeves County, Texas. This multi-gigawatt power and data center development represents a substantial commitment by some of the largest energy and technology companies in the world, and this validates the Permian as an attractive data center infrastructure hub capable of accommodating hyperscale facilities. In addition, during the quarter, we acquired over 10,000 acres of land in Shackelford and Jones County, Texas, for approximately $100 million. This region is amongst the fastest-growing data center regions in the country, and this acquisition further expands our strategic data center and power generation efforts beyond the immediate Permian Basin. This land was attractive due to its contiguousness, land and water resources, access to natural gas and grid infrastructure, established fiber and proximity to a midsized city. We are also progressing on a number of projects with various high-quality hyperscalers and AI labs, which also includes our joint effort alongside Bolt Data & Energy. Deal execution requires extensive work involving many counterparties and thorough wide-ranging diligence and our conversations revolve around multiple verticals such as land, water, aggregates and other aspects. West Texas is rapidly becoming a dominant global hub for power and compute, and it's apparent that developers and customers remain keenly motivated to expand their power and compute footholds in the regions. We will be able to provide more specific details as our commercial efforts turn into executed agreements. Turning to our produced water desalination efforts. We have completed construction and commenced commissioning on our desalination facility located in Orla, Texas, which we refer to as Phase 2b. Eventually ramping the facility to its 10,000 barrel a day capacity will allow us to demonstrate that produced water desalination can work at scale. Our desalination effort leverages our patented freeze desalination process where we also have equipment exclusivity for oil and gas applications with one of the country's leading providers of industrial scale process cooling solutions. In addition, this year, we will be implementing various desalination colocation studies. Our freeze desalination process will generate large volumes of ice and chilled water, which then could potentially be used by data centers for chip cooling. Furthermore, we are also investigating the utilization of waste heat recovery equipment to enhance our desalination process and reduce our energy consumption. There is also additional optionality to monetize both the high-spec freshwater and concentrated brine output streams from the facility. Desalinated produced water represents an interesting opportunity as it is not part of the hydrologic cycle and thus high-spec desalinated freshwater could meet standards for irrigation, industrial cooling, rangeland rehabilitation, streamflow augmentation and data center cooling, thereby reducing demands on existing local water resources. The concentrated brine may also enhance economics of produced water valorization by extracting valuable minerals such as lithium. We're excited to finally have completed construction on our Phase 2 facility as produced water desalination at scale could help significantly reduce traditional injection demand. In addition, energy supermajors and large independent hyperscalers and AI labs have shown strong interest related to the commercial and operational opportunities related to colocation and output water streams. Our Orla Phase 2 facility will provide interested parties with a tangible real-world exhibit of how we can turn an oilfield waste product into something with highly positive commercial and environmental attributes. We look forward to providing more updates in the coming quarters as we operate the facility and as business discussions advance. With that, I'll hand the call over to Chris. Chris Steddum: Thanks, Ty. Consolidated revenues during the second quarter 2026 were approximately $246 million. This represents a quarterly all-time high as well as a 4% sequential increase and a 31% increase year-over-year. Consolidated adjusted EBITDA was $216 million, which was up 19% sequentially and 30% year-over-year. Our adjusted EBITDA margin for the quarter was 88%. Free cash flow was $156 million, which was up 14% sequentially and up 20% year-over-year. Moving to our well inventory. As of quarter end, TPL had 5.6 net permitted wells, 9.5 net drilled but uncompleted wells or commonly referred to as DUCs and 3.4 net completed but not producing wells. That amounts to 18.4 net line-of-sight wells. Year-to-date, capital expenditures were $29 million. As Ty discussed, in the second half of this year, we will be spending capital to investigate colocation cooling and waste heat capture opportunities at our Orla Phase 2b desalination facility. This spend was embedded in our original CapEx guidance at the beginning of the year, and we reaffirm the fiscal year guide of $65 million to $75 million. And with that, operator, we will now take questions. Operator: [Operator Instructions] First question comes from Derrick Whitfield with Texas Capital. Derrick Whitfield: My first question, I wanted to start with the surface acquisitions you made in Shackelford and Jones Counties. While a bit of a step out, it's clear to us that it was bought on more than a hunch. How would you guys frame the opportunity with this kind of build-out in this project potential and the amount of revenue streams it could involve? Tyler Glover: Yes. That's a good question, Derrick. I mean it is a little bit of a step out, but I mean, we think the power and compute opportunity in West Texas is enormous and broader than just the Permian and our legacy footprint. And so we've been doing diligence on that property for over a year now to make sure that it specs out. That area was interesting to a compute user that we've been working with for a while now. And so I think we've demonstrated to the tech community that our team has the expertise to locate land, water, gas resources even if it's outside of our legacy footprint. And so I think it just adds some flexibility to the value proposition of TPL. We're excited about it. We think we can replicate it. And I think the question about the value chain, it's very similar to our other properties and how we look at the oil and gas business. We want to be as involved in the project as we can while still being really capital light. And so land use, water, aggregates, just clipping coupons to the kind of the entire life cycle of that project so that we capture as much of the value chain as we possibly can. Derrick Whitfield: Great. And then as my follow-up, I wanted to focus on the water desal, but specifically water desal for chip cooling. How would you frame the depth of interest you're seeing in your conversations with hyperscalers and AI labs, given the fact that it is water additive to the hydrologic cycle. I think it's a huge selling point that you guys have in your process. Robert Crain: Yes. I mean the interest in produced water and data center use is huge. And I think it's not just one stream. When you look at it, just -- let's start with just the consumptive piece. I think there still is some evaporative cooling and adding adiabatic assist that is water consumption that goes into data center, not just chip cooling, but building cooling. Obviously, that's your first one that everybody hits on because it is water that's not in the hydrologic cycle. Next, you move into something that's more specific to our technology that we're in a lot of discussions with a couple of hyperscalers and AI labs on, and that's using our freeze technology for direct chip cooling. If you look at the heat transfer that a hyperscaler uses for direct chip, it's a fraction of the heat transfer that we look at when we're getting this water down to sub-15 degrees Fahrenheit to be able to remove the salts from the water. So that's another fit. All of it goes towards a water positivity or water neutrality goal, a couple of other aspects that we're chasing just to reduce that consumption on any municipal or type of traditional water sourcing that they typically use today. Operator: Next question, Tim Rezvan with KeyBanc Capital Markets. Timothy Rezvan: Derrick touched on the topics of interest to me, but I thought I'd follow up a little more on this acreage acquisition. I think a little bit of a surprise is that you all have almost 1 million surface acres already. I know the opportunity set is vast on power and compute. But should we be expecting potential like sizable acquisitions like this in the future? I guess the idea is how much of the opportunity can you leverage off your existing footprint versus needing to buy more? Tyler Glover: Yes. Look, we're looking at it the same way we did when we started the water business, right? The primary objective is to develop the existing resource that we already have, but we're simultaneously looking for other opportunities. Like I mentioned, I think the opportunity set here is beyond our legacy footprint. And so why let someone else capture that value. And so very similar to how we've built the water business, like I said, we are looking at both options simultaneously. And I would just say like we're in advanced conversations with multiple hyperscalers, AI labs and power generators on 25 gigawatts of projects right now. I would be disappointed if we don't announce at least one or more major definitive agreements in the near term. So with an opportunity set like that, that's growing by the week, we feel like we owe it to our shareholders to look outside of our existing footprint. Timothy Rezvan: Okay. Okay. That's good context, especially on the scale, 25 gigawatts is a big number. If I could switch gears a little bit. Produced water royalty volumes, you touched on it. It was a record in the second quarter. And looking at sort of the revenue per barrel, it was at the high end, about over $0.08 a barrel. Should we be modeling that to continue to kind of ramp? I mean we know the broader trends in the business, but just kind of curious how you see that trending over the next year or 2. Tyler Glover: Well, we've got price escalators built in our existing contracts. And I think pore space will become more valuable over time. I would say the one caveat is transportation royalties are typically a little less than an actual pore space injection royalty. And so as that mix changes, you should see that royalty kind of stay steady to increasing over time. Timothy Rezvan: Okay. I appreciate that. If I could just ask one more question on your minerals business. It's biggest revenue component, but probably the least discussed segment. We saw oil tick down about 5% in the second quarter, which is a little contrary to sort of comments from large operators about pulling volumes forward into higher oil prices. So can you comment on kind of maybe what happened and maybe how you see oil volumes trending amid the rig ramp in the Permian? Chris Steddum: Yes, Tim. I think there's a couple of factors. One, I think I would just start by saying I don't think the lower oil percentage is a near-term trend for us. I think kind of this quarter and even last quarter to some extent was a bit unique. There's probably some accounting noise as some of our new acquisitions come online. We also just had a lot of heavy development that was occurring late last year, really throughout 2025 in areas that are pretty gas-rich including one of our other acquisitions. A couple of our acquisitions were some really high-interest wells in Culberson County were drilled over a pretty short time frame. And so I think our expectation is we were kind of mid-30% oil cuts. I do think that's going to trend back up. And if you look at it as a more normalized long term, it should get back up 40% plus over time. So really more kind of something unique to TPL. And the reality is even as diversified as our royalty interests are the way that people operate, they can park a rig and a completion crew in an area and can affect some of the mix with drilling a whole bunch of 3- and 4-mile laterals, the production that comes online can be significant. And so there's a lot of different factors that I think led to the -- what we might see as a pretty high gas cut. But I do think we will see both that oil trend back up and become a more meaningful part of the production mix on a go-forward basis. Operator: Next question, Oliver Huang with Tudor, Pickering. Hsu-Lei Huang: Just wanted to hit on, I guess, thoughts around the buyback. I mean, I know there have been some royalty bolt-ons over the past 12 to 18 months in addition to the land acquisition here. But it's been several quarters since there's been anything meaningful on the buyback front. Just trying to get a better understanding how does this reflect your current view of where the equity sits from a valuation perspective? Is this something that's being purposely done just to build capital for bigger near-term asks across whether it be royalty M&A, land, power and desal investments? Chris Steddum: Yes. Right now, there's a lot of really good opportunity set as we've seen the Shackelford acquisition is one of those. And I think one of our big thoughts when it comes to capital allocation is kind of putting those dollars toward best and highest use. And we just continue to see a lot of great opportunities out there where we feel like we want to be kind of in that cash build mode for now. And that's not to say that in the future, we retain the right to go out and do buybacks if that at the time becomes what we would view as a very attractive use of capital. And so it is always on our mind. We are always considering that as a way to deploy our capital. As we sit here today in the environment that we're in right now, building cash seems like and deploying it for some of these other opportunities is kind of where we want to focus. But buybacks are always on the table and something we're constantly looking at. Hsu-Lei Huang: Okay. Perfect. Maybe just a follow-up on desal. Apologies if I missed it earlier, but just any sort of color in terms of just initial takeaways? How is what you all seen early on just kind of changed your conviction level in terms of what next steps might be? And what should we kind of be watchful for on that front? Robert Crain: If anything, over the time, our belief that beneficial reuse and produced water desal will take hold as part of that mix only grows stronger. I think if you look at total water production, it continues to climb. It will continue to climb as you get into some of these Tier 2 zones that just have a higher water cut. So we were some of the first early adopters to why we are where we are and ahead of the industry in the facility is because we knew it was going to be part of that takeaway mix. That belief only gets stronger. I think what helps even strengthen that further is the interest we're seeing from the hyperscalers and the AI labs for eventually implementing this into a sourcing mix as we see the compute build-out in West Texas. To note, we're done in build. We're commissioning. Actually, on Monday, we will be hosting our grand opening and ribbon cutting at the facility. The interest we're seeing not just from the operators, we'll be attending legislators, regulators, but also multiple hyperscalers that will be on site with us on Monday as we commission the facility. Hsu-Lei Huang: Awesome. Maybe one more follow-up, if I could squeeze it in. Just kind of on your earlier comments with working with the compute user in the Shackelford, Jones County area. Any sort of color as to how quickly you can recycle the opportunity set into actual revenue dollars that start to come through the financial statements? Tyler Glover: Repeat the last part of that question, sorry. Hsu-Lei Huang: Just how quickly could we start seeing actual revenue dollars start to come through the financial statements given that specific opportunity set? Tyler Glover: Yes. Like I said, that's one that we've been working on for a while. We're a year into diligence. We're working with Bolt to develop that project. We've already started working with the local communities there on tax abatements and other things that are kind of like the tail end of the diligence process. So that's one that I would be very disappointed if we don't have a definitive agreement to announce in the very near term. Robert Crain: Yes. Real quick follow-up on what we see as this opportunity and how we're preparing for it. When we look at the near-term sourcing mixes that we're looking for these data centers and what we need to do to prepare for it, the water sourcing is varied. The eventual goal is to get produced water into data center usage. But near term, we know that we have to build out a team and build out systems for the non-potable construction water usage, the potable water that goes into the man camps. And even as far as the demand water that's used in the closed-loop system. So when we look at that, we know we've got to build a new division, a new team around that, bring in folks that the chemist of the world and these direct chip design guys, cooling design, closed-loop systems. So it's moving fast. It's moving rapidly, as Ty said, it kind of is growing by the week right now as we see the interest in West Texas compute. Operator: Thank you. This concludes today's teleconference. You may disconnect your lines at this time, and we thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Texas Pacific Land (TPL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Texas Pacific Land (TPL) just reported second quarter 2026 earnings that highlighted record revenue from royalties and water, along with a clearer push into data center and power related projects. See our latest analysis for Texas Pacific Land. Despite the strong second quarter update, Texas Pacific Land’s share price has retreated recently, with the stock down 16.1% over the past week and 14.4% over the past month. The year to date share price return is 14.3% and the 1 year total shareholder return is 20.3%, pointing to longer term momentum even as near term enthusiasm cools. If Texas Pacific Land’s data center and power ambitions have your attention, it may be a good time to widen the search and look at 37 power grid technology and infrastructure stocks Bulls point to Texas Pacific Land’s rising royalties, water revenue and large-scale data center and power pipeline. Bears focus on the recent share price pullback and execution risk. Which side does the current valuation appear to support next? Texas Pacific Land’s most followed narrative pegs fair value at $445 per share compared with the latest close at $340.65, putting a spotlight on the gap that bulls and bears are debating. Read the complete narrative. Read the complete narrative. Want to see what is baked into that $445 figure? The narrative focuses on revenue and earnings trajectories and a rich future earnings multiple. Investors can explore how those moving parts fit together in the model. Result: Fair Value of $445 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Texas Pacific Land’s heavy reliance on Permian royalties, along with ongoing regulatory and ESG scrutiny around water use, could challenge the bullish narrative if conditions tighten. Find out about the key risks to this Texas Pacific Land narrative. The first narrative leans on future earnings power to argue that Texas Pacific Land is undervalued. The current P/E of 43.4x paints a very different picture. This is more than triple the US Oil and Gas industry at 13.1x and well above peers at 11.8x. It also sits far above the estimated fair ratio of 21x, which is the level the market could move toward over time. If that happens, today’s price could face pressure even if fundamentals track expectations. Which story do you think the market is more likely to follow next? See what the numbers say about this price — find out in our valuation breakdown. With mixed views on Texas Pacific Land throughout this article, it makes sense to review the data yourself and decide where you stand. To see both the potential upsides and the key concerns in one place, start by weighing the 3 key rewards and 1 important warning sign. Do not stop with Texas Pacific Land. Broaden your watchlist now so you are ready when the next compelling setup appears rather than reacting after the move. Explore potential opportunities with companies that combine quality fundamentals with lower valuations by checking out 52 high quality undervalued stocks. Support the stability of your portfolio by using the solid balance sheet and fundamentals stocks screener (48 results) to focus on companies with sturdier financial footing. Scan the screener containing 21 high quality undiscovered gems to research strong businesses before they hit the headlines. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TPL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Texas Pacific Land Corporation? Here are five stocks we like better. Record second-quarter results: Revenue rose 31% year over year to approximately $246 million, while adjusted EBITDA reached $216 million and free cash flow totaled $156 million. Oil and gas royalty production increased 20% year over year, and produced-water royalty volumes rose 15%. Expanding data-center and power strategy: TPL acquired more than 10,000 acres in Texas for about $100 million and is in advanced discussions involving 25 gigawatts of potential projects with hyperscalers, AI labs and power generators. The company also disclosed that its previously announced land and water agreement supports Chevron’s Project Kilby data-center power facility. Desalination facility enters commissioning: TPL began commissioning its Orla, Texas, Phase 2B facility, which is designed to process up to 10,000 barrels of produced water per day and supply freshwater for industrial and data-center cooling. Full-year capital expenditure guidance remains $65 million to $75 million. Microsoft Solves AI’s Biggest Bottleneck With Chevron Deal Texas Pacific Land (NYSE:TPL) reported record quarterly revenue, net income and free cash flow for the second quarter of 2026, supported by higher oil and gas royalty production, produced-water royalty volumes and surface-related revenue. Chief Executive Officer Ty Glover said the company generated record results across major financial and operating measures while advancing initiatives involving data-center infrastructure, power generation and produced-water desalination. → No Hangover: Revisiting Microsoft One Week After Earnings The S&P 500's 3 Best-Performing Stocks So Far in 2026 Chief Financial Officer Chris Steddum said consolidated revenue totaled approximately $246 million, a quarterly record and an increase of 4% from the prior quarter and 31% from a year earlier. Adjusted EBITDA was $216 million, up 19% sequentially and 30% year over year, with an adjusted EBITDA margin of 88%. Free cash flow reached $156 million, rising 14% from the first quarter and 20% from the second quarter of 2025, Steddum said. → MarketBeat Week in Review – 08/03 - 08/07 3 Cash Cow Stocks Leading Their Sectors in Free Cash Flow Margins Oil and gas royalty production averaged about 39,700 barrels of oil equivalent per day, increasing 7% sequentially and 20% year over year. Glover said the company’s unhedged royalty position enabled it to benefit from the stronger oil-price environment during the quarter. Produced-water royalty volumes reached 4.9 million barrels per day, a 6% sequential increase and a 15% year-over-year increase. Glover attributed the gain to demand for TPL’s in-basin and out-of-basin pore space. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Water sales volumes were 663,000 barrels per day, down 19% from the prior quarter but up 38% from a year earlier. According to Glover, quarterly water-sales volumes were affected by weak in-basin natural-gas prices, which led operators to shift some development away from the Delaware Basin. He said the company expects new gas-pipeline capacity entering service over the next several quarters to improve local gas-price differentials and potentially support a mix shift back toward the Delaware Basin. Surface, land and material revenue, or SLEM revenue, totaled $24 million, up 37% sequentially, driven by pipeline and wellbore easements, Glover said. As of the end of the quarter, TPL had 5.6 net permitted wells, 9.5 net drilled-but-uncompleted wells and 3.4 net completed-but-not-producing wells, for a total of 18.4 net line-of-sight wells. Year-to-date capital expenditures were $29 million. The company disclosed that a previously announced land sale and water-supply agreement relates to Project Kilby, a large-scale power-generation facility that Chevron is developing to support a customer data center in Reeves County, Texas. Glover described the multi-gigawatt power and data-center development as a validation of the Permian Basin’s ability to host hyperscale infrastructure. During the quarter, TPL also acquired more than 10,000 acres in Shackelford and Jones counties for about $100 million. Glover said the area is among the fastest-growing data-center regions in the country and offers contiguous land and water resources, access to natural gas and grid infrastructure, established fiber and proximity to a mid-size city. In response to analyst questions, Glover said TPL had conducted diligence on the property for more than a year and that it was of interest to a compute user the company had been working with. He said TPL seeks to remain capital-light while participating across potential project revenue streams, including land use, water and aggregates. Glover said the company was in advanced conversations with hyperscalers, artificial-intelligence labs and power generators involving 25 gigawatts of projects. He said he would be disappointed if TPL did not announce one or more major definitive agreements in the near term, while noting that execution requires work with multiple counterparties and extensive diligence. Steddum said the company has prioritized building cash and deploying capital toward what it views as high-return opportunities, including land acquisitions and other growth initiatives. While share repurchases remain under consideration, he said the company currently sees attractive alternatives for its capital. TPL completed construction and began commissioning its Phase 2B produced-water desalination facility in Orla, Texas. The facility is designed to eventually process 10,000 barrels per day and uses the company’s patented freeze-desalination process. Glover said the process could create high-specification freshwater for applications including industrial cooling, irrigation, rangeland rehabilitation, stream-flow augmentation and data-center cooling. The facility also produces concentrated brine that could potentially be used to extract minerals such as lithium. Robert Crain, executive vice president of Texas Pacific Water Resources, said interest from hyperscalers and AI labs in using produced water for data-center operations has been substantial. He said potential applications include water-consumptive building cooling and direct chip cooling, where the company’s process produces ice and chilled water. Crain said TPL plans to conduct desalination co-location studies during 2026, including investigations into chip-cooling applications and waste-heat recovery equipment that could reduce the process’s energy consumption. The company expects to host a grand opening and ribbon cutting for the Orla facility as commissioning continues. Steddum reaffirmed TPL’s full-year capital expenditure guidance of $65 million to $75 million. The guidance includes planned spending in the second half of the year to evaluate cooling co-location and waste-heat-capture opportunities at the Orla Phase 2B facility. On production mix, Steddum said the oil component of royalty production had been affected by development in relatively gas-rich areas and by new acquisitions. He said TPL’s oil cut, which had been in the mid-30% range, should trend back above 40% over time. Texas Pacific Land Corporation (NYSE: TPL) is a Texas-based land management company that derives revenue from the ownership and stewardship of large tracts of land and associated mineral rights in West Texas. The company's origins trace to 19th century land grants associated with the Texas and Pacific Railway; over time those grant holdings have been retained and managed as a standalone corporate asset base. Texas Pacific Land is publicly listed and operates as a landowner and resource manager rather than as a traditional oil and gas producer. The company's primary activities include management of surface rights and leasing of land for energy and other commercial uses, administration of mineral royalty interests, and provision of water and related services to industrial customers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Texas Pacific Land Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Texas Pacific Land Corp (NYSE:TPL) delivered record quarterly total revenue, net income, and free cash flow, with consolidated revenues reaching approximately $246 million, up 31% year over year. Oil and gas royalty production hit a record average of approximately 39,700 barrels of oil equivalent per day, up 20% year over year, and the company's unhedged position allowed it to fully benefit from strong oil prices. Produced water royalty volumes reached a record 4.9 million barrels per day, up 15% year over year, driven by strong demand for both in-basin and out-of-basin pore space. The company is making significant strategic progress in data center and power generation efforts, including the multi-gigawatt Project Gilby with Chevron and a new 10,000-acre land acquisition in Shackelford and Jones County, Texas, expanding its footprint beyond the Permian. Construction of the Orla Phase 2B desalination facility is complete and commissioning has commenced, with strong interest from hyperscalers and AI labs for potential co-location and beneficial reuse of produced water streams. Management is in advanced conversations with multiple hyperscalers, AI labs, and power generators on 25 gigawatts of projects, with expectations of announcing at least one or more major definitive agreements in the near term. Water sales volumes declined 19% sequentially in the second quarter due to weak in-basin natural gas prices, as operators shifted some development activity away from the Delaware Basin. The oil cut in production mix dipped to the mid-30% range, lower than the expected normalized long-term level of 40% plus, partly due to accounting noise from new acquisitions and heavy development in gas-rich areas. The company has paused share buybacks for several quarters, choosing to build cash to deploy toward other opportunities like land acquisitions, which may not be the most favorable use of capital if the stock is undervalued. The Shackelford and Jones County land acquisition represents a step-out beyond the company's legacy footprint, introducing execution risk in a new region and requiring new expertise in data center development. The desalination facility is still in early commissioning stages, and the company has yet to demonstrate that produced water desalination can work at scale, with commercial viability and revenue generation still unproven. The company's capital expenditure guidance of $65 million to $75 million for the year includes spending on co-location cooling and waste heat capture investigations, which are exploratory and may not yield immediate returns. Warning! GuruFocus has detected 2 Warning Signs with TPL. Is TPL fairly valued? Test your thesis with our free DCF calculator. Q: How should we frame the opportunity with the Shackelford and Jones County land acquisition, and what revenue streams could it involve? A: CEO Tyler Glover explained that the acquisition is a step beyond the legacy Permian footprint but reflects the enormous power and compute opportunity in West Texas. The company did over a year of diligence on the property, which was attractive to a compute user they've been working with. TPL aims to replicate its oil and gas value-chain approachland use, water, aggregatesto capture as much value as possible while remaining capital-light. Q: Given the vast existing surface acreage, should we expect more sizable acquisitions like this, and how much of the opportunity can be leveraged off the existing footprint versus buying more? A: Glover stated that the primary objective is to develop existing resources, but the opportunity set extends beyond the legacy footprint. TPL is in advanced conversations with multiple hyperscalers, AI labs, and power generators on 25 gigawatts of projects. He expressed confidence in announcing at least one or more major definitive agreements in the near term, justifying the need to look outside the existing footprint. Q: Water royalty volumes were a record in Q2, with revenue per barrel at the high end (~$0.08). Should we model this to continue ramping over the next year or two? A: CFO Chris Stedham noted that existing contracts have built-in price escalators, and pore space should become more valuable over time. He added a caveat that transportation royalties are typically slightly less than pore-space-based injection royalties, so as the mix changes, the royalty rate should remain steady to increasing. Q: Oil production ticked down about 5% in Q2, contrary to operator comments about pulling volumes forward. What happened, and how do you see oil volumes trending amid the rig ramp in the Permian? A: Stedham attributed the lower oil cut to unique factors, including accounting noise from new acquisitions and heavy development in gas-rich areas, particularly high-interest wells in Culberson County drilled over a short timeframe. He expects the oil cut, currently in the mid-30% range, to trend back up to 40%+ over time as a more normalized long-term level. Q: It's been several quarters since meaningful buybacks. Does this reflect your view on equity valuation, or is it purposeful to build capital for bigger near-term deals (royalty M&A, land, power, desal investments)? A: Stedham explained that TPL is in a "cash build mode" given the strong opportunity set, such as the Shackelford acquisition. The company aims to deploy dollars toward the best and highest use. While buybacks remain on the table and are constantly evaluated, deploying capital into these growth opportunities is the current focus. Q: Any initial takeaways from the desalination facility (Phase 2B) that have changed your conviction level, and what should we watch for? A: EVP Robert Crane stated that the belief in beneficial reuse and produced water desalination only grows stronger as total water production climbs. The interest from hyperscalers and AI labs for implementing this into their sourcing mix strengthens the case. The company is hosting a grand opening and ribbon-cutting at the facility, with multiple hyperscalers, legislators, and regulators attending. Q: How quickly can the Shackelford/Jones County opportunity translate into actual revenue dollars in the financial statements? A: Glover noted the project has been in diligence for over a year, and TPL is working with Bolt Beta Energy to develop it. They've already started working with local communities on tax abatements, which is the tail end of the diligence process. A definitive agreement could be announced in the very near term. Q: Can you provide more color on the water sourcing strategy for data centers and how TPL is preparing for it? A: Crane explained that while the eventual goal is to get produced water into data center usage, near-term needs include non-potable construction water, potable water for man camps, and demineralized water for closed-loop systems. TPL is building a new division and team around this, bringing in experts in chemistry, direct chip cooling design, and closed-loop systems, as the interest in West Texas compute grows rapidly. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Texas Pacific (TPL) came out with quarterly earnings of $2.23 per share, beating the Zacks Consensus Estimate of $2.14 per share. This compares to earnings of $1.68 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.21%. A quarter ago, it was expected that this landowner would post earnings of $2.03 per share when it actually produced earnings of $2.07, delivering a surprise of +1.97%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Texas Pacific, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $246.06 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $187.54 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Texas Pacific shares have added about 37.7% since the beginning of the year versus the S&P 500's gain of 13%. While Texas Pacific has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Texas Pacific was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.35 on $264 million in revenues for the coming quarter and $8.88 on $1.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Gevo, Inc. (GEVO), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of -300%. The consensus EPS estimate for the quarter has been revised 114.3% higher over the last 30 days to the current level. Gevo, Inc.'s revenues are expected to be $45.49 million, up 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Pacific Land Corporation (TPL) : Free Stock Analysis Report Gevo, Inc. (GEVO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

West Texas landowner Texas Pacific Land (NYSE:TPL) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 31.2% year on year to $246.1 million. Its GAAP profit of $2.23 per share was 2.1% above analysts’ consensus estimates. Is now the time to buy Texas Pacific Land? Find out in our full research report. Revenue: $246.1 million vs analyst estimates of $249.6 million (31.2% year-on-year growth, 1.4% miss) EPS (GAAP): $2.23 vs analyst estimates of $2.18 (2.1% beat) Adjusted EBITDA: $215.6 million vs analyst estimates of $212 million (87.6% margin, 1.7% beat) Operating Margin: 78%, up from 76.6% in the same quarter last year Free Cash Flow Margin: 63.2%, similar to the same quarter last year Market Capitalization: $26.34 billion One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE:TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases. Cyclical industries such as Energy can make mediocre companies look great for a time, but a long-term view reveals which businesses can actually withstand and adapt to changing conditions. Thankfully, Texas Pacific Land’s 22.2% annualized revenue growth over the last five years was exceptional. Its growth surpassed the average energy upstream and integrated energy company and shows its offerings resonate with customers, a great starting point for our analysis. Even a long stretch in Energy can be shaped by a single commodity cycle, so extending the view to ten years adds another perspective and reveals which companies are built to grow regardless of the pricing regime. Texas Pacific Land’s annualized revenue growth of 31.1% over the last ten years is above its five-year trend. This quarter, Texas Pacific Land pulled off a wonderful 31.2% year-on-year revenue growth rate, but its $246.1 million of revenue fell short of Wall Street’s rosy estimates. WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. Texas Pacific Land has been a well-oiled machine over the last five years. It demonstrated elite profitability for an upstream and integrated energy business, boasting an average EBITDA margin of 86.4%. Analyzing the trend in its profitability, Texas Pacific Land’s EBITDA margin decreased by 6.3 percentage points over the last year. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Texas Pacific Land generated an EBITDA margin profit margin of 87.6%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable. This adjusted EBITDA beat Wall Street’s estimates by 1.7%. Adjusted EBITDA shows how profitable a company’s existing wells are before financing and reinvestment decisions, but free cash flow shows how much value remains after paying the cost of replacing those wells. In upstream energy, production naturally declines over time, so companies must continuously reinvest just to stand still. A producer can report strong EBITDA margins yet generate little or no free cash flow if its wells decline quickly or if new drilling is expensive. Free cash flow therefore captures not only how efficiently a company produces hydrocarbons today, but also how costly it is to sustain that production into the future. Texas Pacific Land has shown terrific cash profitability, driven by its lucrative business model that enables it to reinvest, return capital to investors, and stay ahead of the competition. The company’s free cash flow margin was among the best in the energy upstream and integrated energy sector, averaging an eye-popping 63.2% over the last five years. The level of free cash flow is important, but its durability across cycles is just as critical. Consistent margins are far more valuable than volatile swings driven by commodity prices. Texas Pacific Land’s ratio of quarterly free cash flow volatility to WTI Crude price volatility over the past five years was 1.5 (lower is better), indicating unusually strong insulation from commodity swings. This stability supports superior capital access in downturns and positions Texas Pacific Land to act as a consolidator when weaker peers are forced to retrench. You may be asking why we wait until the free cash flow line to perform this stability analysis versus commodity prices. Why not compare revenue or EBITDA to WTI Crude prices in the case of Texas Pacific Land? Because what ultimately matters is not how much revenue or profit you earn when prices are high but how much cash you can generate when prices are low. Free cash flow is the superior metric because it includes everything from hedging prowess to growth and maintenance capex to management behavior during good times and bad. Texas Pacific Land’s free cash flow clocked in at $155.5 million in Q2, equivalent to a 63.2% margin. This cash profitability was in line with the comparable period last year and its five-year average. It was encouraging to see Texas Pacific Land beat analysts’ EBITDA expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its revenue slightly missed. Overall, this quarter was mixed. The stock traded up 1.1% to $385.69 immediately following the results. Big picture, is Texas Pacific Land a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

– Achieved Record Consolidated Net Income and Free Cash Flow(1) – Earnings Call to be Held Thursday, August 6, 2026 at 9:30 am CT DALLAS, August 05, 2026--(BUSINESS WIRE)--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 second quarter of 2026. "This quarter, we delivered record results across major financial and operating metrics and achieved significant milestones within our key growth initiatives," said Tyler Glover, Chief Executive Officer of the Company. "TPL generated record revenue, net income, and free cash flow this quarter, supported by record oil and gas royalty daily production and produced water royalty volumes. Our unhedged commodity position allowed us to capture the full upside of this quarter’s elevated oil prices. We also disclosed our involvement with Project Kilby, a multi-gigawatt power generation and data center hub located in Reeves County. As part of that development, TPL is providing land and water resources. In addition, we acquired land in Shackelford and Jones Counties, Texas as we expand our data center and power generation efforts to areas beyond the immediate Permian Basin. Furthermore, we have completed construction and begun commissioning on our 10,000 barrel per day produced water desalination test facility in Orla, Texas. Our produced water desalination efforts represent a proprietary potential sustainable solution to mitigate produced water injection demands, while also providing numerous commercial opportunities to utilize the high-spec freshwater and concentrated brine output streams." Second Quarter 2026 Highlights Achieved record performance results, including: Water Services and Operations segment revenues of $82.2 million Completed construction and commenced commissioning of Phase 2B produced water desalination facility in Orla, Texas with anticipated capacity of 10,000 inlet barrels per day. Announced an agreement with a Chevron Corporation (NYSE: CVX) ("Chevron") subsidiary 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. $110.2 million of aggregate land acquisitions in Shackelford and Jones Counties, Texas, in connection with our data center and power generation initiatives, and land in Winkler County, Texas. As of June 30, 2026, TPL’s royalty acreage had an estimated 5.6 net well permits, 9.5 net drilled but uncompleted wells ("DUCs"), and 3.4 net completed but not producing wells ("CUPs"), totaling 18.4 net wells.(2) TPL had 131.9 net producing wells as of June 30, 2026, and net producing wells added during the quarter had an average lateral length of approximately 10,438 feet. Quarterly cash dividend of $0.60 per share was paid on June 15, 2026 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. Six Months Ended June 30, 2026 Highlights Oil and gas royalty production of 38.4 thousand Boe per day Water sales revenue of $86.6 million Produced water royalties revenue of $70.6 million Land and Resource Management segment revenues of $317.4 million Water Services and Operations segment revenues of $165.5 million Consolidated net income of $296.8 million, or $4.30 per share (diluted) Adjusted EBITDA(1) of $397.0 million Free cash flow(1) of $291.9 million $83.2 million of total cash dividends paid through June 30, 2026 Financial Results for the Second Quarter of 2026 - Sequential The Company reported net income of $153.9 million for the second quarter of 2026 compared to net income of $142.9 million for the first quarter of 2026. Total revenues for the second quarter of 2026 were $246.1 million compared to $236.8 million for the first quarter of 2026. The increase in total revenues was primarily due to a $27.4 million increase in oil and gas royalty revenue, a $6.3 million increase in easements and other surface-related income, and a $3.5 million increase in produced water royalties, partially offset by a $20.9 million change in land sales revenue and a $7.1 million decrease in water sales compared to the first quarter of 2026. The Company’s average realized price was $42.17 per Boe in the second quarter of 2026 compared to $37.06 per Boe in the first quarter of 2026, and the Company’s share of production was 39.7 thousand Boe per day for the second quarter of 2026 compared to 37.1 thousand Boe per day for the first quarter of 2026. Water sales decreased in the second quarter of 2026 compared to the first quarter of 2026 due to a decrease in water sales volumes, partially offset by an increase in average realized pricing. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers. Total operating expenses were $54.2 million for the second quarter of 2026 compared to $54.5 million for the first quarter of 2026. The decrease in operating expenses was principally related to a $2.7 million decrease in water service-related expenses, partially offset by a $2.6 million increase in depreciation, depletion and amortization expense during the second quarter of 2026 compared to the first quarter of 2026. Financial Results for the Six Months Ended June 30, 2026 - Year Over Year The Company reported net income of $296.8 million for the six months ended June 30, 2026 compared to net income of $236.8 million for the six months ended June 30, 2025. Total revenues for the six months ended June 30, 2026 were $482.9 million compared to $383.5 million for the six months ended June 30, 2025. The increase in total revenues was primarily due to a $57.5 million increase in oil and gas royalty revenue, a $22.2 million increase in water sales, a $20.9 million increase in land sales, and a $12.2 million increase in produced water royalties, partially offset by a $13.5 million change in easements and other surface-related income during the six months ended June 30, 2026 compared to the same period of 2025. The Company’s share of production was 38.4 thousand Boe per day for the six months ended June 30, 2026 compared to 32.2 thousand Boe per day for the same period of 2025, and the Company’s average realized price was $39.72 per Boe for the six months ended June 30, 2026 compared to $37.10 per Boe for the same period of 2025. Water sales increased due to both increased water sales volumes and average realized pricing, and produced water royalties increased due to increased produced water volumes. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers. Total operating expenses were $108.7 million for the six months ended June 30, 2026 compared to $89.7 million for the same period of 2025. The increase in operating expenses was principally related to an increase of $6.3 million in water service-related expenses, a $5.0 million increase in depreciation, depletion and amortization, and an increase of $4.9 million in general and administrative expenses during the six months ended June 30, 2026 compared to the same period of 2025. Quarterly Dividend Declared On August 4, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.60 per share, payable on September 15, 2026 to stockholders of record at the close of business on September 1, 2026. Conference Call and Webcast Information The Company will hold a conference call on Thursday, August 6, 2026 at 9:30 a.m. Central Time to discuss second quarter 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# 13759099. The telephone replay will be available starting shortly after the call through August 20, 2026. About Texas Pacific Land Corporation 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. 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. 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 executive officers on an annual basis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation, less land sale with financing arrangement and pension curtailment and settlement gain, as applicable to the periods presented. 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 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 current income tax expenses, land sale with financing arrangement, purchases of fixed assets and pension curtailment and settlement gain, as applicable to the periods presented. 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 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 June 30, 2026 and March 31, 2026 and for the six months ended June 30, 2026 and June 30, 2025 (in thousands): The following table presents a reconciliation of net income to free cash flow for the three months ended June 30, 2026 and March 31, 2026 and for the six months ended June 30, 2026 and June 30, 2025 (in thousands): View source version on businesswire.com: https://www.businesswire.com/news/home/20260805467858/en/ Contacts Investor [email protected]

Texas Pacific Land Corporation (TPL) is one of the largest landowners in Texas, managing approximately 873,000 surface acres and oil and gas royalty interests in the Permian Basin. The Dallas, Texas-based company generates revenue from royalties, land management, easements, water services, and resource infrastructure. It currently has a market capitalization of about $28.5 billion. TPL is set to report its Q2 earnings on Wednesday, August 5, 2026, after the market closes. Ahead of the release, analysts expect the company to report a diluted EPS of $2.14, up 27.4% from $1.68 in the year-ago quarter. TPL has exceeded Wall Street's EPS estimates in the past two trailing quarters. Micron Stock Is Off 31% From Its High. Why This Could Be the Best Time to Buy. Michael Saylor’s Bitcoin Treasury Company Strategy Is Falling Apart This Red-Hot AI Infrastructure Stock Just Made a Game-Changing Move. How to Play NBIS Here. Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2026, analysts expect the company to report EPS of $8.88, up 27.4% from $6.97 in fiscal 2025. Moreover, its EPS is projected to increase another 8.6% year over year to $9.64 in fiscal 2027. TPL stock has gained 26.5% over the past 52 weeks, surpassing the S&P 500 Index ($SPX), which returned 20.3%, while underperforming the State Street Energy Select Sector SPDR ETF (XLE), which climbed 32.4% during the same period. On July 13, 2026, Texas Pacific Land shares rose 3.7% after renewed U.S. military strikes on Iran and escalating tensions around the Strait of Hormuz lifted crude oil prices. The heightened risk of supply disruptions improved the revenue outlook for U.S. energy companies. Analysts remain somewhat bullish on TPL, with the stock earning an overall "Moderate Buy" rating. Among the three analysts covering the stock, two recommend a "Strong Buy," while one suggests a "Strong Sell." The average price target of $442.33 implies a potential upside of 6.3% from the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com