Texas Pacific Land Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for the third quarter of 2026 was $273.4 million, a sequential increase of $27.3 million from $246.1 million in the second quarter of 2026.
• Consolidated net income for the third quarter of 2026 was $167.4 million ($2.42 per share diluted), compared to $153.9 million ($2.23 per share diluted) in the second quarter of 2026.
• Consolidated revenue for the nine months ended September 30, 2026, was $756.3 million, a year-over-year increase of $169.7 million from $586.6 million in the same period of 2025.
• Consolidated net income for the nine months ended September 30, 2026, was $464.2 million ($6.73 per share diluted), compared to $358.0 million ($5.19 per share diluted) in the same period of 2025.
• Adjusted EBITDA for the third quarter of 2026 was $238.4 million, compared to $215.6 million in the second quarter of 2026.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $635.4 million, compared to $509.2 million in the same period of 2025.
• Free cash flow for the third quarter of 2026 was $170.3 million, compared to $155.5 million in the second quarter of 2026.
• Free cash flow for the nine months ended September 30, 2026, was $462.3 million, compared to $379.5 million in the same period of 2025.
• Total operating expenses for the third quarter of 2026 were $65.6 million, up from $54.2 million in the second quarter of 2026.
• Total operating expenses for the nine months ended September 30, 2026, were $174.3 million, up from $143.7 million in the same period of 2025.
• Oil and gas royalty revenue for the third quarter of 2026 was $167.3 million, compared to $145.6 million in the second quarter of 2026.
• Oil and gas royalty revenue for the nine months ended September 30, 2026, was $431.0 million, compared to $315.0 million in the same period of 2025.
• Produced water royalty revenue for the third quarter of 2026 was $41.4 million, compared to $37.1 million in the second quarter of 2026.
• Produced water royalty revenue for the nine months ended September 30, 2026, was $112.0 million, compared to $90.7 million in the same period of 2025.
• Water sales revenue for the third quarter of 2026 was $28.4 million, down from $39.7 million in the second quarter of 2026.
• Water sales revenue for the nine months ended September 30, 2026, was $115.0 million, compared to $109.0 million in the same period of 2025.
• Land and Resource Management segment revenue for the third quarter of 2026 was $201.6 million.
• Water Services and Operations segment revenue for the third quarter of 2026 was $71.8 million.
• Land and Resource Management segment revenue for the nine months ended September 30, 2026, was $519.0 million.
• Water Services and Operations segment revenue for the nine months ended September 30, 2026, was $237.3 million.
• Average realized price per Boe for oil and gas royalties was $44.97 in the third quarter of 2026, compared to $42.17 in the second quarter of 2026.
• Average realized price per Boe for oil and gas royalties was $41.60 for the nine months ended September 30, 2026, compared to $36.01 in the same period of 2025.
• Company's share of oil and gas production was 42.3 thousand Boe per day in the third quarter of 2026, compared to 39.7 thousand Boe per day in the second quarter of 2026.
• Company's share of oil and gas production was 39.7 thousand Boe per day for the nine months ended September 30, 2026, compared to 33.6 thousand Boe per day in the same period of 2025.

Guidance and Future Outlook:

• Management stated that efforts toward data centers, power generation, and produced water desalination and beneficial reuse continue to progress with a focus on advancing these into meaningful commercial outcomes.
• The company noted that revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.
• Forward-looking statements regarding future operations, drilling inventory, and energy resources are subject to risks including litigation, economic conditions, and industry-specific factors.

Business Segments and Product Lines:

• Oil and gas royalty production reached 42.3 thousand Boe per day in the third quarter of 2026.
• Produced water royalty volumes reached 5.5 million barrels per day in the third quarter of 2026.
• Water sales volumes were 672 thousand barrels per day in the third quarter of 2026.
• Produced water royalty volumes were 5.5 million barrels per day in the third quarter of 2026.
• As of September 30, 2026, TPL's royalty acreage had an estimated 5.7 net well permits, 8.6 net drilled but uncompleted wells (DUCs), and 2.5 net completed but not producing wells (CUPs), totaling 16.8 net wells.
• TPL had 132.5 net producing wells as of September 30, 2026.
• Net producing wells added during the third quarter of 2026 had an average lateral length of approximately 10,623 feet.
• Completed construction and commenced commissioning of the Phase 2B produced water desalination facility in Orla, Texas, with an anticipated capacity of 10,000 inlet barrels per day.
• Announced an agreement with Chevron U.S.A. Inc. to provide land and brackish water resources for Chevron's Project Kilby, a large-scale power generation facility to support a customer data center in Reeves County, Texas.
• Completed $122.7 million of aggregate land acquisitions in Shackelford and Jones Counties, Texas, for data center and power generation initiatives, and in Winkler and Reeves Counties, Texas.

Market and Competitive Landscape:

• The Permian Basin continues to show robust development activity, elevated oil prices, and improved gas realizations, driving record royalty revenue.
• Pipeline easement revenue was strong as operators expanded development of midstream infrastructure.
• The trend of growing Permian produced water supported record produced water royalty volumes and revenues.

Risks and Challenges:

• Revenue streams are directly impacted by commodity prices and development and operating decisions made by customers.
• Forward-looking statements involve risks and uncertainties, including the initiation or outcome of potential litigation, changes in general economic and industry-specific conditions, and other risks discussed in the company's 10-K and 10-Q filings.

Management Commentary and Tone:

• Tyler Glover, Chief Executive Officer, described the third quarter results as the strongest in TPL's history with new records set across the business.
• Management highlighted that royalty acreage benefited from robust development activity, elevated oil prices, and improved gas realizations.
• Management expressed steadfast commitment to advancing data center, power generation, and produced water desalination initiatives into meaningful commercial outcomes.

Other Key Points:

• A quarterly cash dividend of $0.60 per share was paid on September 15, 2026.
• On November 2, 2026, the Board declared a quarterly cash dividend of $0.60 per share, payable on December 15, 2026, to stockholders of record at the close of business on December 1, 2026.
• Total cash dividends paid through September 30, 2026, were $124.6 million.
• Peter Doyle was appointed to the Board on May 5, 2026; he is a co-founder and Co-Chief Executive Officer of Horizon Kinetics, TPL's largest stockholder.
• The company is not an oil and gas producer but generates revenue through land and royalty ownership, including easements, resource monetization, and water services.