Texas Pacific Land Corporation Announces Third Quarter Results

Core Insights - Texas Pacific Land Corporation (TPL) reported record quarterly revenues and net income for the third quarter of 2025, driven by strong performance in its Water Services and Operations segment and oil and gas royalty production [5][6][7]. Financial Results for the Third Quarter of 2025 - Net income for Q3 2025 was $121.2 million, up from $116.1 million in Q2 2025 [6]. - Total revenues reached $203.1 million, compared to $187.5 million in Q2 2025, with increases in water sales ($19.0 million) and oil and gas royalty revenue ($13.7 million) [7]. - The company's share of production was 36.3 thousand Boe per day, an increase from 33.2 thousand Boe per day in Q2 2025, with an average realized price of $34.10 per Boe [7][24]. Financial Results for the Nine Months Ended September 30, 2025 - Net income for the nine months was $358.0 million, compared to $335.6 million for the same period in 2024 [10]. - Total revenues for the nine months were $586.6 million, up from $520.0 million in 2024, primarily due to increases in oil and gas royalty revenue ($38.6 million) and produced water royalties ($14.7 million) [11]. - The company's share of production was 33.6 thousand Boe per day for the nine months, compared to 26.0 thousand Boe per day in 2024 [11]. Operational Highlights - TPL executed a purchase agreement for approximately 17,306 net royalty acres in the Midland Basin for $505 million, which closed on November 3, 2025 [8][14]. - A new $500 million revolving credit facility was completed on October 23, 2025, with an interest rate based on the Secured Overnight Financing Rate (SOFR) plus 2.25% to 2.50% [13]. - The company began construction of a 10,000 barrel per day produced water desalination facility in Orla, Texas, expected to be operational by the end of 2025 [8]. Dividend and Stock Split - A quarterly cash dividend of $1.60 per share was declared on November 3, 2025, payable on December 15, 2025 [15]. - The Board approved a three-for-one stock split of TPL's common stock, expected to be completed in December 2025 [16].