The share price of Texas Pacific Land Corporation (NYSE:TPL) surged by 15.63% between February 13 and February 20, 2026, putting it among the Energy Stocks that Gained the Most This Week. Texas Pacific Land (TPL) Hits New Records in Q4 2025 Texas Pacific Land Corporation (NYSE:TPL) owns and manages about 868,000 acres in the Permian Basin. The company generates revenues along the entire value chain of oil and gas development, including royalties, water resources, and surface leases, easements, and materi ...

Core Insights - Texas Pacific Land Corporation (TPL) is a significant landowner in Texas, focusing on land management, oil and gas royalties, and water services [1][6] - The company has organized a shareholder visit to its office and water field in Midland to enhance understanding of its operations and water management strategies [2][6] - HORIZON KINETICS ASSET MANAGEMENT LLC, a major shareholder with a 10 percent stake, recently purchased additional shares, indicating strong investor confidence in TPL [3][6] - TPL's stock reached a high of $518.79, reflecting positive market sentiment and optimism regarding the company's performance [4] - The shareholder visit aims to build transparency and trust, strengthening relationships with investors and providing insights into TPL's operations [5][6]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 were approximately $212 million, with adjusted EBITDA of $178 million and an adjusted EBITDA margin of 84% [15] - Free cash flow for Q4 was $119 million, and for the full year 2025, record free cash flow reached approximately $498 million, an 8% year-over-year increase [15][16] - Full year 2025 oil and gas royalty production increased by 29% year-over-year, while water sales daily volumes increased by 4% and produced water royalty daily volumes increased by 25% [15][16] Business Line Data and Key Metrics Changes - Oil and gas royalty production grew 23% year-over-year in Q4, while water sales volumes exceeded 1 million barrels per day for the first time, growing 36% year-over-year [4] - Produced water royalty volumes grew 22% year-over-year [4] - The company achieved a three-year compounded annual growth rate of 17% for oil and gas royalty production, 18% for water sales volumes, and 30% for produced water royalty volumes despite declining oil prices [5] Market Data and Key Metrics Changes - The Permian Basin experienced a decline in rig activity, with the horizontal rig count down approximately 26% [17] - Despite lower rig counts, production growth was sustained through a drawdown of drilled but uncompleted wells (DUCs), with an estimated 600 DUCs drawn down in 2025 [17][18] - The average lateral lengths of wells completed on TPL royalty acreage increased by 8% compared to the previous year, with new permits averaging 35% longer than in 2024 [19] Company Strategy and Development Direction - The company is focused on next-generation opportunities in data centers and produced water desalination, with a strategic investment in Bolt Data & Energy to develop large-scale solutions [6][7] - TPL aims to build multiple multi-gig energy campuses, leveraging its scale in land, gas, and water access [27] - The company plans to invest approximately $20 million in waste heat capture and data center cooling at its desalination facility [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth pipeline for 2026, emphasizing the ability to drive growth and extract value even in a weak oil price environment [11][12] - The company maintains a debt-free balance sheet and a $500 million undrawn credit facility, providing flexibility to invest opportunistically [12][21] - Management highlighted the importance of maximizing long-term intrinsic value per share and the robust opportunity set across legacy and next-gen businesses [12] Other Important Information - The company announced a regular dividend of $0.60 per share, representing a 12.5% increase from the previous quarter [16] - A shareholder event is scheduled for May 18th in Midland, Texas, to provide updates on company operations [13] Q&A Session Summary Question: Thoughts on power and data center development opportunities - Management noted that the opportunity set for power and data center development has evolved significantly, with ongoing commercial negotiations and promising projects [26][27] Question: Potential value from the Bolt Energy partnership - Management indicated that the water revenue potential from Bolt's 10-gigawatt data center campus could be substantial, with water usage varying based on facility design [29][31] Question: Strength in traditional water business amid broader activity contraction - Management attributed the strength in produced water volumes to legacy contracts and strategic implementation over the past few years, allowing for market capture despite activity level fluctuations [34][36] Question: Update on desalination process efficiencies - Management confirmed that the goal is to reduce energy consumption in desalination, with waste heat capture being a key focus to lower costs [45][46] Question: Exposure to rare earth exploration in Hudspeth County - Management acknowledged ongoing exploration projects in Hudspeth County, with promising early findings [48]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 were approximately $212 million, with adjusted EBITDA of $178 million and an adjusted EBITDA margin of 84% [15] - Free cash flow for Q4 was $119 million, and for the full year 2025, record free cash flow reached approximately $498 million, an 8% year-over-year increase [15][16] - Full year 2025 oil and gas royalty production increased by 29% year-over-year, while water sales volumes increased by 4% and produced water royalty volumes increased by 25% [15][16] Business Line Data and Key Metrics Changes - Oil and gas royalty production grew 23% year-over-year in Q4, while water sales volumes exceeded 1 million barrels per day for the first time, growing 36% year-over-year [4] - Produced water royalty volumes grew 22% year-over-year [4] - The company achieved a 3-year compounded annual growth rate of 17% for oil and gas royalty production, 18% for water sales volumes, and 30% for produced water royalty volumes [5] Market Data and Key Metrics Changes - The Permian Basin experienced a decline in rig activity, with the horizontal rig count down approximately 26% [17] - Despite lower rig counts, production growth was sustained through a drawdown of drilled but uncompleted wells (DUCs), with an estimated 600 DUCs drawn down in 2025 [17][18] - The average lateral lengths of completed wells increased by 8% compared to the previous year, with new permitted wells averaging 35% longer than in 2024 [19] Company Strategy and Development Direction - The company is focused on leveraging its strengths in water and land access to build large-scale energy campuses, aiming for multiple multi-gig energy campuses [27][28] - TPL is investing in next-generation opportunities, including data centers and produced water desalination, with a strategic investment in Bolt Data & Energy [6][7] - The company plans to invest approximately $20 million in waste heat capture and data center cooling at its desalination facility [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth pipeline for 2026, focusing on maximizing long-term intrinsic value per share despite a weak oil price environment [12][11] - The company maintains a debt-free balance sheet and a $500 million undrawn credit facility, providing flexibility to invest opportunistically [12][21] - Management highlighted the importance of adapting to evolving market conditions and maintaining a resilient business model [22] Other Important Information - The company announced a regular dividend of $0.60 per share, representing a 12.5% increase from the previous quarter [16] - A shareholder event is scheduled for May 18th in Midland, Texas, to provide updates on company operations [13] Q&A Session Summary Question: Thoughts on power and data center development opportunities - Management noted that the opportunity set for power and data center development has evolved significantly, with ongoing commercial negotiations and promising projects [26][27] Question: Potential value from the Bolt Energy partnership - Management indicated that the water usage numbers for power generation and data centers could be substantial, depending on facility design [30][31] Question: Strength in traditional water business amid market contraction - Management attributed the strength in produced water volumes to legacy contracts and strategic implementation over the past few years [34][35] Question: Updates on desalination process efficiencies - Management confirmed that the goal is to reduce energy consumption in desalination, with waste heat capture being a key focus [45][46] Question: Exposure to rare earth exploration in Hudspeth County - Management acknowledged ongoing exploration projects in Hudspeth County, with promising early findings [48][49]

Texas Pacific Land Corporation NYSE: TPL Investor Presentation – February 2026 Disclaimers This presentation has been designed to provide general information about Texas Pacific Land Corporation and its subsidiaries ("TPL" or the "Company"). Any information contained or referenced herein is suitable only as an introduction to the Company. The recipient is strongly encouraged to refer to and supplement this presentation with information the Company has filed with the Securities and Exchange Commission ("SEC" ...

Core Viewpoint - Texas Pacific Land Corporation (TPL) is transitioning towards high-growth infrastructure, particularly in AI-linked digital infrastructure, while maintaining its traditional revenue streams from oil and gas royalties [5]. Group 1: Company Overview - TPL is a land and resource management company based in Dallas, Texas, founded in 1888, and is one of the largest private landowners in Texas [1]. - The company has a market capitalization of approximately $28.5 billion [1]. Group 2: Market Performance - Over the past year, TPL has underperformed the broader market with a decline of 7.5%, but has seen significant gains of 44.1% in 2026 [2]. - In comparison, the S&P 500 Index has increased by 14.4% over the past year and is up 1.4% year-to-date [2]. Group 3: Strategic Developments - TPL is experiencing momentum due to a strategic pivot into non-energy sectors, specifically through a partnership with Bolt Data & Energy to develop data centers on its West Texas land [5]. - This diversification aims to create a new revenue stream, reducing reliance on the volatile oil and gas royalty model [5]. Group 4: Analyst Expectations - For the fiscal year ending December 2025, analysts project TPL's earnings per share (EPS) to grow by 5.3% to $6.92 on a diluted basis [6]. - The consensus among analysts is a "Moderate Buy," supported by two "Strong Buy" ratings and one "Hold" [6]. Group 5: Price Targets - Texas Capital Securities has reaffirmed its "Buy" rating on TPL with a price target of $390, citing potential data center development as a growth catalyst [7]. - TPL is currently trading above its average price target of $316.67 and Texas Capital's highest price target of $390 [7].

Financial Performance - Alliance Resource Partners, L.P. reported a fourth quarter EBITDA of $191.1 million, reflecting a 54.1% increase year over year, resulting in a free cash flow of $93.8 million after Capex adjustments [1] - The royalties segment achieved a record year with an adjusted EBITDA contribution of $30 million for 2025, indicating strong performance in oil and gas royalties [4] Market Conditions - Average coal sale prices decreased by 4% year over year due to the expiration of higher-priced legacy contracts and lower coal sales volumes, which were affected by the timing of committed deliveries [2] - Despite the revenue decline, increased production and inventory suggest significant earnings potential in upcoming quarters, supported by favorable long-term and short-term industry conditions [3] Valuation - The company appears undervalued with a price to earnings ratio that is 44% lower than coal peers and 51% lower than oil peers, despite generating record free cash flow and maintaining a strong balance sheet [5]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 was $191.1 million, a 54.1% increase from Q4 2024 and a 2.8% increase sequentially [4] - Net income attributable to ARLP in Q4 2025 was $82.7 million, or $0.64 per unit, compared to $16.3 million, or $0.12 per unit, in Q4 2024 [4] - Total revenues for Q4 2025 were $535.5 million, down from $590.1 million in Q4 2024, primarily due to lower coal sales and transportation revenues [5] Business Line Data and Key Metrics Changes - Average coal sales price per ton in Q4 2025 was $57.57, a 4% decrease year-over-year and a 2.1% decrease sequentially [6] - Total coal production in Q4 2025 was 8.2 million tons, up from 6.9 million tons in Q4 2024, while coal sales volumes were 8.1 million tons, down from 8.4 million tons in Q4 2024 [6] - In the Illinois Basin, coal sales volumes were 6.5 million tons in Q4 2025, down approximately 2% compared to both Q4 2024 and the sequential quarter [7] - In the Appalachia region, coal sales volumes were 1.7 million tons in Q4 2025, down from 1.8 million tons in Q4 2024 [8] Market Data and Key Metrics Changes - The oil and gas royalty segment achieved total revenue of $56.8 million in Q4 2025, up 17.2% year-over-year [11] - BOE volumes in the oil and gas royalty segment increased 20.2% year-over-year and 10% sequentially [11] - Total liquidity as of December 31, 2025, was $518.5 million, including $71.2 million in cash and cash equivalents [13] Company Strategy and Development Direction - The company anticipates overall coal sales volumes for 2026 to increase to 33.75-35.25 million tons, despite reduced sales volumes at the Mettiki mine [14] - Contracting activity for 2026 is robust, with over 93% of expected volumes already committed and priced at the midpoint of guidance [14] - The company remains committed to investing in its oil and gas royalties business and pursuing disciplined growth in this segment [17] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong performance in the Illinois Basin and robust customer demand, with utilities opting for longer-term agreements [19] - The company noted that coal's value to the grid is increasingly recognized, especially during extreme weather events [26] - Management expects demand fundamentals to strengthen, driven by higher natural gas prices and load growth from data centers and U.S. manufacturing [25] Other Important Information - The company ended Q4 2025 with 1.1 million tons of coal inventory, an increase compared to previous quarters [10] - The anticipated impact of reduced sales volumes at Mettiki is reflected in the 2026 guidance, with potential impairment evaluations planned for Q1 2026 [10] Q&A Session Summary Question: What does it take to get to the high or low end of your price per ton guidance? - Management indicated that most remaining tons to be sold are in the Illinois Basin, with potential upside depending on customer contract flexibilities [33] Question: What would it take for Alliance to increase production? - Management stated that no new units are planned, but productivity improvements are expected to drive growth [39] Question: How to model equity method investments going forward? - Management suggested a lower run rate of around $3 million per quarter for equity investment income moving forward [41] Question: How should we think about quarterly sales cadence in 2026? - Management expects Q1 2026 to be the lowest sales quarter, with gradual improvement anticipated in subsequent quarters [47] Question: How do you expect export sales to compare to 2025 levels? - Management noted that export sales are limited, focusing primarily on domestic customers due to higher netbacks [50]

Financial Data and Key Metrics Changes - For Q4 2025, adjusted EBITDA was $191.1 million, up 54.1% from Q4 2024 and up 2.8% sequentially from Q3 2025 [4] - Net income attributable to ARLP in Q4 2025 was $82.7 million, or $0.64 per unit, compared to $16.3 million, or $0.12 per unit, in Q4 2024 [4] - Total revenues were $535.5 million in Q4 2025, down from $590.1 million in Q4 2024, primarily due to lower coal sales and transportation revenues [5] Business Line Data and Key Metrics Changes - Average coal sales price per ton for Q4 2025 was $57.57, a 4% decrease year-over-year and a 2.1% decrease sequentially [6] - Total coal production in Q4 2025 was 8.2 million tons, compared to 6.9 million tons in Q4 2024 [6] - In the Illinois Basin, coal sales volumes were 6.5 million tons in Q4 2025, down approximately 2% compared to both Q4 2024 and Q3 2025 [7] - In Appalachia, coal sales volumes were 1.7 million tons in Q4 2025, down from 1.8 million tons in Q4 2024 [8] Market Data and Key Metrics Changes - The oil and gas royalty segment achieved total revenue of $56.8 million in Q4 2025, up 17.2% year-over-year [11] - BOE volumes increased 20.2% year-over-year and 10% sequentially in Q4 2025 [11] - Total liquidity as of December 31, 2025, was $518.5 million, including $71.2 million in cash [13] Company Strategy and Development Direction - The company anticipates overall coal sales volumes for 2026 to increase to 33.75 million tons - 35.25 million tons, despite reduced sales volumes at the Mettiki Mine [14] - Contracting activity for 2026 is robust, with over 93% of expected volumes already committed and priced [14] - The company remains committed to investing in its oil and gas royalties business and pursuing disciplined growth in this segment [17] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong contracting activity and a favorable supply-demand dynamic as utilities opt for longer-term agreements [19] - The company noted that coal's value to the grid is increasingly recognized, especially during extreme weather events [26] - Management expects demand growth driven by data centers and industrial development, which will support coal pricing [25] Other Important Information - The company ended Q4 2025 with 1.1 million tons of coal inventory, an increase compared to previous quarters [10] - The anticipated impact of reduced sales volumes at Mettiki is reflected in the 2026 guidance, with potential impairment evaluations planned for Q1 2026 [10] Q&A Session Summary Question: What does it take to get to the high or low end of your price per ton guidance? - Management indicated that most remaining tons to be sold are in the Illinois Basin, with potential upside depending on customer contract flexibilities [34] Question: What would it take for Alliance to increase production? - Management stated that no new units are planned, but productivity improvements are expected to drive growth [40] Question: Any thoughts on modeling equity method investments going forward? - Management suggested a lower run rate of around $3 million per quarter for equity investment income moving forward [43] Question: How should we think about quarterly sales cadence in 2026? - Management expects Q1 2026 to be the lowest sales quarter, with gradual improvement anticipated in subsequent quarters [49] Question: How do you expect export sales to compare to 2025 levels? - Management noted that export sales are limited, focusing primarily on domestic customers due to higher netbacks [51]

Financial Data and Key Metrics Changes - For Q4 2025, adjusted EBITDA was $191.1 million, up 54.1% from Q4 2024 and up 2.8% sequentially from Q3 2025 [4] - Net income attributable to ARLP in Q4 2025 was $82.7 million, or $0.64 per unit, compared to $16.3 million, or $0.12 per unit, in Q4 2024 [4] - Total revenues were $535.5 million in Q4 2025, down from $590.1 million in Q4 2024, primarily due to lower coal sales and transportation revenues [5] Business Line Data and Key Metrics Changes - Average coal sales price per ton for Q4 2025 was $57.57, a 4% decrease year-over-year and a 2.1% decrease sequentially [6] - Total coal production in Q4 2025 was 8.2 million tons, compared to 6.9 million tons in Q4 2024 [6] - In the Illinois Basin, coal sales volumes were 6.5 million tons in Q4 2025, down approximately 2% compared to both Q4 2024 and Q3 2025 [7] - In Appalachia, coal sales volumes were 1.7 million tons in Q4 2025, down from 1.8 million tons in Q4 2024 [9] Market Data and Key Metrics Changes - The oil and gas royalty segment achieved total revenue of $56.8 million in Q4 2025, up 17.2% year-over-year [12] - BOE volumes increased 20.2% year-over-year and 10% sequentially in Q4 2025 [12] - Total liquidity as of December 31, 2025, was $518.5 million, including $71.2 million in cash [14] Company Strategy and Development Direction - The company anticipates overall coal sales volumes for 2026 to increase to 33.75-35.25 million tons, despite reduced sales volumes at the Mettiki mine [15] - Contracting activity for 2026 is robust, with over 93% of expected volumes already committed and priced [15] - The company remains committed to investing in its oil and gas royalties business and pursuing disciplined growth in this segment [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong contracting activity and a favorable supply-demand dynamic as utilities opt for longer-term agreements [21] - The company noted that coal generation played a critical stabilizing role during recent winter weather events, reinforcing coal's value to the grid [25] - Management expressed confidence in the long-term demand growth driven by data centers and industrial development [26] Other Important Information - The company ended Q4 2025 with 1.1 million tons of coal inventory, an increase compared to previous quarters [11] - The anticipated impact of reduced sales volumes at Mettiki is reflected in the 2026 guidance, with potential impairment evaluations planned for Q1 2026 [11] Q&A Session Summary Question: What does it take to get to the high or low end of your price per ton guidance? - Most remaining tons to be sold are in the Illinois Basin, with some optionality for customers that could influence pricing [35] Question: What would it take for Alliance to increase production? - The company does not plan to add any units but may improve productivity through existing operations [40] Question: How to model equity method investments going forward? - A lower run rate of approximately $3 million per quarter is suggested for future modeling [43] Question: How should we think about quarterly sales cadence in 2026? - The first quarter is expected to be the lowest, with gradual improvement anticipated in subsequent quarters [48] Question: How do you expect export sales to compare to 2025 levels? - The focus remains on domestic customers, with limited exposure to the export market [50]