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Sep 30
Texas Pacific Q3 2025 Earnings Report
Texas Pacific Land Corporation reported strong third quarter results with record revenue and net income from its Water Services and Operations segment.
Key Takeaways
TPL achieved record revenue of $203.1 million and net income of $121.2 million in Q3 2025, driven by increased water sales and oil and gas royalties.
Total revenue reached $203.1 million, up from $187.5 million in Q2 2025
Net income rose to $121.2 million from $116.1 million in Q2
Water Services and Operations segment delivered record revenue of $80.8 million
Oil and gas royalty production reached 36.3 thousand Boe per day
Texas Pacific
Texas Pacific
Texas Pacific Revenue by Segment
Texas Pacific Revenue by Geographic Location
Revenue by Segment
Oil & Gas Royalties Revenue
CapyFin.comWater Sales Revenue
CapyFin.comProduced Water Royalties Revenue
CapyFin.comEasements & Surface Inc. Revenue
CapyFin.comLand Sales Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
TPL expects continued strength in water operations and stable oil and gas royalty production. Recent acquisitions are expected to enhance future cash flows.
Positive Outlook
- Completed acquisition of 17,306 net royalty acres and 8,147 surface acres
- Water desalination facility expected to start service by year-end
- Stock split announced to improve liquidity
- Credit facility of $500 million secured for future flexibility
- New assets expected to deliver double-digit pre-tax cash yield
Challenges Ahead
- Decline in easements and surface-related income quarter-over-quarter
- Operating expenses increased to $54.0 million
- Weakness in broader commodity prices may impact revenue
- Realized price per Boe decreased YoY
- Stock split pending final effective date and subject to market conditions