Texas Pacific Q4 2024 Earnings Report

Texas Pacific Land Corporation reported strong revenue growth and record royalty production in Q4 2024.

Key Takeaways

TPL delivered solid financial results for Q4 2024, with total revenue of $185.78M and record royalty production of 29.1K Boe/d. Net income reached $118.36M, and free cash flow stood at $123.73M. The company continued expanding its asset base with significant acquisitions in the Midland Basin.

Total revenue of $185.78M, driven by strong oil & gas royalties and water operations.

Net income of $118.36M, with diluted EPS at $5.14.

Free cash flow of $123.73M, supporting continued investments and dividends.

Acquired 7,490 net royalty acres for $275.2M, expanding the asset base.

Total Revenue

$186M

Previous year: $167M

+11.5%

EPS

$5.14

Previous year: $4.91

+4.7%

Royalty Production (Boe/d)

29.1K

Dividend per Share

$1.6

Adjusted EBITDA

$161M

Free Cash Flow

$124M

Previous year: $107M

+15.6%

Texas Pacific Revenue

Texas Pacific EPS

Texas Pacific Revenue by Segment

Forward Guidance

TPL remains focused on growth through strategic acquisitions, water infrastructure expansion, and royalty asset optimization.

Positive Outlook

Expansion of royalty and surface asset base.
Continued investment in water infrastructure projects.
Ongoing construction of produced water desalination test facility.
Strong free cash flow supporting shareholder returns.
Exploring consolidation opportunities in the royalty market.

Challenges Ahead

Exposure to commodity price fluctuations.
Regulatory uncertainties in energy and water sectors.
Potential operational disruptions due to infrastructure projects.
Increased competition in the Permian Basin.
Macroeconomic factors impacting oil and gas demand.