Texas Pacific Land (US:TPL)2025-11-05 21:17Financial Performance - Record quarterly revenues of $203.1 million for Q3 2025, up from $187.5 million in Q2 2025, driven by a $19.0 million increase in water sales and a $13.7 million increase in oil and gas royalty revenue [9]. - Consolidated net income for Q3 2025 was $121.2 million, or $5.27 per share (diluted), compared to $116.1 million in Q2 2025 [8]. - Total revenues for the nine months ended September 30, 2025, were $586.6 million, compared to $520.0 million for the same period in 2024, reflecting a $38.6 million increase in oil and gas royalty revenue [12]. - Net income for the nine months ended September 30, 2025, was $358.0 million, compared to $335.6 million for the same period in 2024, reflecting an increase of 6.7% [37]. - Operating income for the nine months ended September 30, 2025, reached $442.9 million, up from $396.6 million in the prior year, marking a growth of 11.7% [37]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $509.2 million, compared to $449.4 million for the same period in 2024, indicating an increase of 13.3% [44]. Production Metrics - Oil and gas royalty production reached 36.3 thousand Boe per day in Q3 2025, an increase from 33.2 thousand Boe per day in Q2 2025 [9]. - Oil production volumes increased to 1,284 MBbls in Q3 2025 from 1,209 MBbls in Q2 2025, representing a 6.2% increase [30]. - Natural gas production rose to 6,142 MMcf in Q3 2025, up 8.5% from 5,659 MMcf in Q2 2025 [30]. - Average daily equivalents production was 36.3 MBoe/d in Q3 2025, up from 33.2 MBoe/d in Q2 2025 [30]. Revenue Breakdown - Water sales revenue for Q3 2025 was $44.6 million, with produced water royalties revenue at $32.3 million [5]. - Total oil and gas royalties reached $108.705 million in Q3 2025, a 14.5% increase compared to $95.006 million in Q2 2025 [33]. - Oil and gas royalties generated $315.0 million in revenue for the nine months ended September 30, 2025, compared to $276.4 million in 2024, an increase of 14.0% [37]. - Water sales revenue for the nine months ended September 30, 2025, was $108.9 million, slightly down from $114.0 million in the previous year, a decrease of 4.5% [37]. - Produced water royalties increased to $90.7 million for the nine months ended September 30, 2025, compared to $76.0 million in 2024, reflecting a growth of 19.3% [37]. Cash Flow and Expenses - Free cash flow for Q3 2025 was $122.9 million, contributing to a total of $379.5 million for the nine months ended September 30, 2025 [5][13]. - Free cash flow for the nine months ended September 30, 2025, amounted to $379.5 million, up from $337.3 million in the same period of 2024, representing a growth of 12.5% [45]. - The company’s total operating expenses increased to $53.994 million in Q3 2025 from $43.792 million in Q2 2025, a rise of 23.2% [33]. - Total operating expenses for the nine months ended September 30, 2025, were $143.7 million, compared to $123.4 million in the same period of 2024, an increase of 16.4% [37]. - Income tax expense for the nine months ended September 30, 2025, was $100.5 million, up from $92.2 million in 2024, indicating an increase of 8.5% [37]. Corporate Actions - The company executed a purchase agreement for approximately 17,306 net royalty acres for $505 million, closing on November 3, 2025 [5][18]. - A new $500 million revolving credit facility was completed on October 23, 2025, with an interest rate of SOFR plus 2.25% to 2.50% [17]. - The board approved a three-for-one stock split on November 3, 2025, expected to be completed in December 2025 [20]. - Quarterly cash dividend of $1.60 per share was declared on November 3, 2025, payable on December 15, 2025 [19].