Group 1 - LandBridge (NYSE: LB) and Texas Pacific Land (TPL) are identified as significant investment positions for the author, with LB being the largest and TPL the second-largest [1] - The article emphasizes the importance of in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] Group 2 - The article does not provide specific financial performance data or metrics related to LB or TPL [2]

Core Insights - Texas Pacific Land (NYSE: TPL) and LandBridge (LB) are highlighted as significant holdings, with TPL being the third-largest and LB the largest [1]. Company Analysis - Texas Pacific Land (TPL) has been frequently mentioned as a key investment opportunity, indicating strong confidence in its performance [1]. - LandBridge (LB) is noted as the largest holding, suggesting a strategic focus on this company for potential growth [1]. Investment Strategy - The article emphasizes the importance of in-depth research on various income alternatives, including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, which are relevant for investors seeking diverse income streams [1].

Core Insights - Texas Pacific Land Corp. (TPL) has shown resilience with a 9% increase in sales and a 12% increase in free cash flow in Q2, despite a significant drop in average oil prices [1][2] - The market reacted negatively to a 34% decline in water sales, which raised concerns about the company's future performance [2][6] - TPL operates in the Permian Basin, generating income through various high-margin business segments, including leasing land and providing water for fracking [3][5] Financial Performance - TPL's sales grew by 9% and free cash flow increased by 12% in Q2 [1] - The decline in water sales by 34% was attributed to reduced activity from operator customers due to lower oil prices [2][6] Business Model - TPL generates revenue from multiple segments: oil and gas royalties, water sales, produced water royalties, and easements [8] - The company leases land to major oil companies and earns royalties from the oil and gas produced, creating a diversified income stream [5] Future Prospects - TPL is exploring next-generation ideas such as carbon capture, solar, wind, grid-connected batteries, and water desalination, indicating potential for future growth [7]

Financial Data and Key Metrics Changes - For Q2 2025, consolidated total revenue was $188 million, with consolidated adjusted EBITDA of $166 million, resulting in an adjusted EBITDA margin of 89% [27] - Free cash flow increased by 12% year over year to $130 million, driven by higher oil and gas royalty production and surface-related income [27][28] - Oil price realizations declined by 21% year over year, impacting overall performance [27] Business Line Data and Key Metrics Changes - Oil and gas royalty production reached a record of approximately 33,200 barrels of oil equivalent per day, representing a 33% increase year over year and a 7% increase sequentially [28] - Produced water royalty revenues set a company record at $31 million, while surface-related income (SLM) also reached a record of $36 million, benefiting from $20 million in pipeline easements [28] - Water sales decreased by $13 million sequentially to $26 million due to lower oil prices and reduced activity from operator customers [29] Market Data and Key Metrics Changes - The average WTI Cushing oil price during the quarter was $64 per barrel, the lowest since 2021, contributing to a decline in operator activity [5][27] - Permian horizontal oil-directed rig counts have declined over 20% from the peak in 2023, indicating a broader slowdown in the market [6] Company Strategy and Development Direction - The company emphasizes its strong position in the Permian Basin, highlighting the potential for long-term growth despite current commodity price volatility [20][25] - TPL is focused on expanding its desalination efforts, with a new facility expected to process 10,000 barrels per day of produced water, aiming to provide high-quality freshwater [21][24] - The company is also actively acquiring out-of-basin pore space to enhance its produced water disposal capabilities [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Permian's long-term resource potential, stating that current oil prices are below mid-cycle levels and that TPL is well-positioned to capitalize on future price increases [25] - The company is prepared to deploy capital opportunistically, whether through buybacks, organic investments, or acquisitions, should the down cycle persist [26] Other Important Information - The company has made significant advancements in drilling technology and operational efficiency, which are expected to extend the longevity of the Permian Basin [12][20] - TPL's royalty acreage has seen the introduction of innovative drilling techniques, such as horseshoe wells, which enhance recovery and reduce surface footprint [17][18] Q&A Session Summary Question: Outlook for water resources in the second half - Management noted that Q2's water sales decline was driven by commodity prices and spatial variations in completion activities, but expects Q3 to be strong [34][35] Question: Thoughts on the ARRIS acquisition by Western - Management agreed that the acquisition supports the Delaware water thesis and creates opportunities for landowners [38] Question: Cost objectives for the desalination facility and its importance - The desalination project is crucial for attracting power generation and data center opportunities, with significant synergies expected [40][42] Question: Expectations for additional power generation announcements - Management indicated that the need for power in the Permian is real, and discussions with industry players are accelerating [44]

Financial Data and Key Metrics Changes - For the second quarter of 2025, consolidated total revenue was $188 million, with consolidated adjusted EBITDA at $166 million, resulting in an adjusted EBITDA margin of 89% [28] - Free cash flow increased by 12% year over year to $130 million, driven by higher oil and gas royalty production and increased produced water royalties [28][29] - Oil price realizations declined by 21% year over year, impacting overall performance despite record revenues in other areas [28] Business Line Data and Key Metrics Changes - Oil and gas royalty production reached approximately 33,200 barrels of oil equivalent per day, marking a 33% increase year over year and a 7% increase sequentially [29] - Produced water royalty revenues set a company record at $31 million, while slim revenues also reached a record of $36 million, benefiting from $20 million in pipeline easements [29] - Water sales decreased by $13 million sequentially to $26 million due to lower oil prices leading to reduced activity [30] Market Data and Key Metrics Changes - The average WTI Cushing oil price during the quarter was $64 per barrel, the lowest since 2021, contributing to a decline in operator activity [5][28] - Permian horizontal oil directed rig counts have declined over 20% from the peak in 2023, indicating a broader slowdown in the market [6] Company Strategy and Development Direction - The company remains focused on its desalination efforts, with a 10,000 barrel per day facility expected to begin operations by year-end, which will convert produced water into high-quality freshwater [22][25] - TPL is strategically positioned to capture growth in produced water volumes, with proactive measures in out-of-basin pore space acquisitions and new contracting [30][24] - The company emphasizes the long-term potential of the Permian Basin, asserting that it retains significant undeveloped inventory and will benefit from technological advancements in drilling and completion practices [11][12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Permian's resource potential despite current commodity price volatility, indicating that the company is well-positioned to capitalize on future upturns in the market [26][27] - The management highlighted that the current oil prices are below longer-term mid-cycle expectations, suggesting a favorable outlook for the future [26] Other Important Information - The company has maintained a debt-free balance sheet while returning significant capital to shareholders, demonstrating financial resilience [31] - TPL's royalty acreage has expanded to include 48 horseshoe wells, showcasing innovation in well development techniques [19] Q&A Session Summary Question: Outlook for water resources in the second half - Management noted that Q2's water sales decline was driven by commodity prices and spatial variations in completion activities, but they expect Q3 to be strong [35][36] Question: Thoughts on the ARRIS acquisition by Western - Management agreed that the acquisition supports the Delaware water thesis and creates opportunities for land and resource owners [38][39] Question: Cost objectives for the desalination facility and its importance - The desalination project is crucial for attracting power generation and data center opportunities, with significant synergies expected [40][42] Question: Expectations for additional power generation announcements - Management indicated ongoing discussions and accelerating talks regarding power generation in the Permian, anticipating more announcements in the near future [44][45]

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most rated 5 stars, indicating a strong reputation in the investment community [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in shares of TPL, LB, and CNQ, indicating personal investment interests [2] - It clarifies that the opinions expressed are those of the author and not influenced by compensation from any company mentioned [2] Group 3 - Seeking Alpha emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment advice [3] - The platform notes that its analysts are third-party authors, which may include both professional and individual investors without formal licensing [3]

[PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, and cash flows, for the periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.40 billion** by June 30, 2025, driven by higher cash, with total equity reaching **$1.29 billion** Condensed Consolidated Balance Sheets (in thousands) | Account | June 30, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 667,500 | 503,369 | | Cash and cash equivalents | 543,930 | 369,835 | | **Total Assets** | **1,404,664** | **1,248,020** | | **Total Liabilities** | 115,720 | 115,555 | | **Total Equity** | **1,288,944** | **1,132,465** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Total revenues for the six months ended June 30, 2025, increased to **$383.5 million**, resulting in **$236.8 million** net income and **$10.29** diluted EPS Financial Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $187,543 | $172,334 | $383,526 | $346,476 | | Oil and gas royalties | $95,006 | $89,813 | $206,251 | $181,933 | | Water sales | $25,577 | $40,650 | $64,390 | $77,776 | | **Operating Income** | $143,751 | $133,222 | $293,824 | $269,263 | | **Net Income** | $116,140 | $114,589 | $236,792 | $229,006 | | **Diluted EPS** | $5.05 | $4.98 | $10.29 | $9.95 | - Cash dividends per share increased significantly to **$1.60** in Q2 2025 from $1.17 in Q2 2024, and to **$3.20** for the first six months of 2025 from $2.34 in the same period of 2024[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$277.6 million** for the six months ended June 30, 2025, with cash used in financing activities rising due to higher dividends Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $277,626 | $245,533 | | **Cash used in investing activities** | ($16,450) | ($9,648) | | **Cash used in financing activities** | ($88,627) | ($71,730) | | Dividends paid | ($74,216) | ($53,801) | | Net increase in cash | $172,549 | $164,155 | | **Cash, end of period** | **$543,930** | **$894,704** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's business segments, accounting policies, segment performance, and subsequent dividend declarations, including its Permian Basin land holdings - The company operates two reportable segments: Land and Resource Management (LRM) and Water Services and Operations (WSO). The CEO, as the chief operating decision maker, uses net income to evaluate segment performance and allocate resources[22](index=22&type=chunk) Segment Net Income (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Land and Resource Management | $172,113 | $161,100 | | Water Services and Operations | $64,679 | $67,906 | | **Consolidated Net Income** | **$236,792** | **$229,006** | - On August 5, 2025, the Board declared a quarterly cash dividend of **$1.60** per share, payable on September 16, 2025[69](index=69&type=chunk) - For the six months ended June 30, 2025, the company's share of oil and gas production was approximately **32.2 thousand barrels of oil equivalent (Boe) per day**, an increase from 24.9 thousand Boe per day in the same period of 2024[67](index=67&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, market conditions, and liquidity, highlighting revenue growth despite lower oil prices, a strong balance sheet, and plans for shareholder returns - Average WTI oil prices for the first six months of 2025 were down approximately **15%** YoY, while average Henry Hub natural gas prices increased by about **74%**[77](index=77&type=chunk) - The company has set a target cash and cash equivalents balance of approximately **$700 million**. Free cash flow generated above this target will primarily be deployed towards special dividends and share repurchases[83](index=83&type=chunk) - The company is developing a patented, energy-efficient desalination process to recycle produced water. Construction of a **10,000 barrel-per-day** facility is underway, with **$15.7 million** spent on the project cumulatively through June 30, 2025[85](index=85&type=chunk) Non-GAAP Reconciliation (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $236,792 | $229,006 | | EBITDA | $329,025 | $300,359 | | Adjusted EBITDA | $335,593 | $305,279 | | Free cash flow | $256,613 | $230,454 | [Market Conditions and Permian Basin Activity](index=21&type=section&id=Market%20Conditions%20and%20Permian%20Basin%20Activity) WTI oil prices decreased **15%** while Henry Hub natural gas prices rose **74%** in H1 2025, with Permian Basin activity remaining robust despite slight declines in permits and rig counts Permian Basin Activity Metrics (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | WTI Cushing oil average price per bbl | $68.12 | $79.69 | | Henry Hub natural gas average price per mmbtu | $3.66 | $2.11 | | Average monthly horizontal permits | 606 | 641 | | Average weekly horizontal rig count | 281 | 302 | [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$543.9 million** cash and no debt, targeting a **$700 million** cash balance for shareholder returns and investing in water desalination - The company had no debt, credit facilities, or off-balance sheet arrangements as of June 30, 2025[82](index=82&type=chunk) - During the first six months of 2025, the company paid **$74.2 million** in dividends and did not repurchase any common stock[84](index=84&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) This section details segment-wise financial results, showing Land and Resource Management revenue growth from increased production and easements, while Water Services saw decreased sales but higher produced water royalties - **Land & Resource Management (Q2 2025 vs Q2 2024):** Oil and gas royalty revenue increased to **$95.0 million** from $89.8 million, driven by a production increase to **33.2 thousand Boe/day** from 24.9 thousand Boe/day, which offset a **20.5%** decrease in the average realized price per Boe[100](index=100&type=chunk) - **Land & Resource Management (Q2 2025 vs Q2 2024):** Easements and other surface-related income surged by **$19.3 million** to **$33.5 million**, primarily due to a **$15.7 million** increase in pipeline easements[102](index=102&type=chunk) - **Water Services & Operations (Q2 2025 vs Q2 2024):** Water sales revenue decreased by **$15.1 million** to **$25.6 million** due to a **39.7%** drop in sales volumes[105](index=105&type=chunk) - **Water Services & Operations (Q2 2025 vs Q2 2024):** Produced water royalties increased to **$30.7 million** from $25.3 million, driven by higher produced water volumes[106](index=106&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes have occurred in the company's market risk disclosures since the 2024 Annual Report on Form 10-K - There have been no material changes in the information related to the market risk of the Company as disclosed in the 2024 Annual Report[131](index=131&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation, the CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[132](index=132&type=chunk) - There were no changes during the quarter ended June 30, 2025, in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal controls[133](index=133&type=chunk) [PART II OTHER INFORMATION](index=33&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings involving itself or its property - There are no material pending legal proceedings involving the company[135](index=135&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the risk factors previously disclosed in the 2024 Annual Report on Form 10-K - No material changes have occurred in the risk factors previously disclosed in the 2024 Annual Report[136](index=136&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock during the three months ended June 30, 2025 - The Company did not repurchase any shares of Common Stock during the three months ended June 30, 2025[137](index=137&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and iXBRL financial data

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) TPL achieved record Q2 2025 results, driven by all-time highs in key royalty and surface income streams [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Oil and Gas Royalty Production | 33.2 thousand Boe per day (Record) | | Easements and Other Surface-Related Income (SLEM) | $36.2 million (Record) | | Produced Water Royalties Revenue | $30.7 million (Record) | | Land and Resource Management Segment Revenues | $128.5 million | | Water Services and Operations Segment Revenues | $59.0 million | | Consolidated Net Income | $116.1 million | | Diluted EPS | $5.05 per share | | Adjusted EBITDA | $166.2 million | | Free Cash Flow | $130.1 million | - In July, the company began construction of a **10,000 barrel per day** produced water desalination facility in Orla, Texas, with an estimated service date in late 2025[5](index=5&type=chunk) - As of June 30, 2025, TPL's royalty acreage had a total of **22.2 net wells** in the development pipeline, consisting of 6.0 net well permits, 11.1 net DUCs, and 5.1 net CUPs[5](index=5&type=chunk) [Six Months Ended June 30, 2025 Highlights](index=1&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Highlights) H1 2025 Key Metrics | Metric | Value | | :--- | :--- | | Oil and Gas Royalty Production | 32.2 thousand Boe per day | | Produced Water Royalties Revenue | $58.4 million | | Land and Resource Management Segment Revenues | $255.1 million | | Water Services and Operations Segment Revenues | $128.4 million | | Consolidated Net Income | $236.8 million | | Diluted EPS | $10.29 per share | | Adjusted EBITDA | $335.6 million | | Free Cash Flow | $256.6 million | [Management Commentary](index=3&type=section&id=Management%20Commentary) - CEO Tyler Glover highlighted the company's financial resilience amid commodity price volatility, citing **record quarterly revenues** in both SLEM and produced water royalties[7](index=7&type=chunk) - Management emphasized TPL's unique position to deliver essential solutions for produced water management, including procuring out-of-basin disposal space, developing desalination technology, and advancing beneficial reuse, all of which represent **significant revenue potential**[7](index=7&type=chunk) [Financial Results Analysis](index=3&type=section&id=Financial%20Results%20Analysis) Q2 2025 net income decreased sequentially, while H1 2025 net income and revenue grew year-over-year due to increased production [Second Quarter 2025 - Sequential Comparison](index=3&type=section&id=Second%20Quarter%202025%20-%20Sequential%20Comparison) Q2 2025 vs Q1 2025 Financials (in millions) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net Income | 116.1 | 120.7 | (4.6) | | Total Revenues | 187.5 | 196.0 | (8.5) | | Oil and Gas Royalty Revenue | 95.0 | 111.2 | (16.2) | | Water Sales | 25.6 | 38.8 | (13.2) | | SLEM Revenue | 36.2 | 18.2 | +18.0 | | Total Operating Expenses | 43.8 | 45.9 | (2.1) | Q2 2025 vs Q1 2025 Production & Pricing | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Production (MBoe/d) | 33.2 | 31.1 | | Avg. Realized Price ($/Boe) | $32.94 | $41.58 | [Six Months Ended June 30, 2025 - Year Over Year Comparison](index=3&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20-%20Year%20Over%20Year%20Comparison) H1 2025 vs H1 2024 Financials (in millions) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | 236.8 | 229.0 | +7.8 | | Total Revenues | 383.5 | 346.5 | +37.0 | | Oil and Gas Royalty Revenue | 206.3 | 181.9 | +24.3 | | SLEM Revenue | 54.4 | 37.2 | +17.2 | | Total Operating Expenses | 89.7 | 77.2 | +12.5 | H1 2025 vs H1 2024 Production & Pricing | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Production (MBoe/d) | 32.2 | 24.9 | | Avg. Realized Price ($/Boe) | $37.10 | $42.07 | - The increase in operating expenses was primarily due to a **$15.0 million increase** in depletion expense related to oil and gas royalty interests acquired in the second half of 2024[13](index=13&type=chunk) [Shareholder Information](index=3&type=section&id=Shareholder%20Information) A $1.60 per share quarterly cash dividend was declared, with Q2 2025 earnings call and 2025 Annual Meeting details announced - On August 5, 2025, the Board of Directors declared a quarterly cash dividend of **$1.60 per share**, payable on September 16, 2025, to stockholders of record as of September 2, 2025[14](index=14&type=chunk) - The Q2 results conference call is scheduled for Thursday, **August 7, 2025**, at 9:30 a.m. Central Time[16](index=16&type=chunk) - The 2025 Annual Meeting of Stockholders will be held in person on **November 6, 2025**, at 11:00 a.m. Central Time in Dallas, Texas[18](index=18&type=chunk) [Financial Statements and Non-GAAP Measures](index=5&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Measures) This section provides unaudited financial tables, including operational data, income statements, segment results, and non-GAAP reconciliations [Financial and Operational Results](index=5&type=section&id=Financial%20and%20Operational%20Results) Production Volumes (MBoe/d) | Period | Production (MBoe/d) | | :--- | :--- | | Q2 2025 | 33.2 | | Q1 2025 | 31.1 | | H1 2025 | 32.2 | | H1 2024 | 24.9 | Realized Prices ($/Boe) | Period | Realized Price ($/Boe) | | :--- | :--- | | Q2 2025 | $32.94 | | Q1 2025 | $41.58 | | H1 2025 | $37.10 | | H1 2024 | $42.07 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Income Statement Summary (in thousands) | Line Item | Q2 2025 | Q1 2025 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $187,543 | $195,983 | $383,526 | $346,476 | | Total Operating Expenses | $43,792 | $45,910 | $89,702 | $77,213 | | Operating Income | $143,751 | $150,073 | $293,824 | $269,263 | | Net Income | $116,140 | $120,652 | $236,792 | $229,006 | | Diluted EPS | $5.05 | $5.24 | $10.29 | $9.95 | [Segment Operating Results](index=7&type=section&id=Segment%20Operating%20Results) Q2 2025 Segment Revenues (in thousands) | Segment | Q2 2025 Revenue | Q1 2025 Revenue | | :--- | :--- | :--- | | Land and Resource Management | $128,497 | $126,581 | | Water Services and Operations | $59,046 | $69,402 | H1 2025 vs H1 2024 Segment Revenues (in thousands) | Segment | H1 2025 Revenue | H1 2024 Revenue | | :--- | :--- | :--- | | Land and Resource Management | $255,078 | $215,517 | | Water Services and Operations | $128,448 | $130,959 | H1 2025 vs H1 2024 Segment Net Income (in thousands) | Segment | H1 2025 Net Income | H1 2024 Net Income | | :--- | :--- | :--- | | Land and Resource Management | $172,113 | $161,100 | | Water Services and Operations | $64,679 | $67,906 | [Non-GAAP Performance Measures](index=9&type=section&id=Non-GAAP%20Performance%20Measures) - The company uses non-GAAP measures such as **EBITDA**, **Adjusted EBITDA**, and **Free Cash Flow** to supplement **GAAP net income** in analyzing operating performance[33](index=33&type=chunk)[34](index=34&type=chunk) Reconciliation of Net Income to Free Cash Flow (in thousands) | Line Item | Q2 2025 | Q1 2025 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $116,140 | $120,652 | $236,792 | $229,006 | | EBITDA | $162,690 | $166,335 | $329,025 | $300,359 | | Adjusted EBITDA | $166,175 | $169,418 | $335,593 | $305,279 | | Free Cash Flow | $130,057 | $126,556 | $256,613 | $230,454 |

Financial Performance & Metrics - TPL's 2Q 2025 total revenues reached $187.5 million [12] - Adjusted EBITDA for 2Q 2025 was $166.2 million, with an 89% margin [12] - Free cash flow for 2Q 2025 amounted to $130.1 million, representing a 69% margin [12] - The company held $544 million in cash and cash equivalents as of June 30, 2025, with no debt [28, 32] - FY 2024 Adjusted EBITDA was $611 million [26] - FY 2024 Free Cash Flow was $461 million [26] Operational Highlights - Oil and gas royalties contributed $95.0 million to the total revenue in 2Q 2025 [12] - Water sales generated $25.6 million in revenue during 2Q 2025 [12] - Produced water royalties amounted to $30.7 million in 2Q 2025 [12] - Easements and other surface income reached $36.2 million in 2Q 2025 [12] Assets and Strategy - TPL has approximately 874,000 surface acres located in the Permian Basin [28, 38] - The company has ~25,800 net royalty acres [28, 32] - TPL is focused on maximizing shareholder value through active management of surface and royalty interests [38]

Group 1 - Texas Pacific Land Corporation (NYSE: TPL) has experienced a 6-month stock return of -32% [1] - The current market environment is seen as presenting potential investment opportunities [1] - The analysis focuses on a mix of quantitative and fundamental evaluation methods for assessing investment attractiveness [1] Group 2 - The analyst has been investing and trading since 2005, with a focus on US equities since 2018 [1] - The main investment strategy involves regularly purchasing shares intended for long-term holding [1] - The analysis aims to provide private investors with an independent view of large and well-known companies based on factual data [1]