Texas Pacific Land Corporation (TPL)

[Enterprising Investor]

Texas Pacific Land Corporation Announces First Quarter Results (5/07/25)

Earnings Call to be Held Thursday, May 8, 2025 at 9:30 am CT

DALLAS--(BUSINESS WIRE)--Texas Pacific Land Corporation (NYSE: TPL) (the “Company,” “TPL,” “we,” “our” or “us”), one of the largest landowners in the State of Texas with surface and royalty ownership that provide revenue opportunities through the support of energy production, today announced its financial and operating results for the first quarter of 2025.

First Quarter 2025 Highlights

Oil and gas royalty production of 31.1 thousand barrels of oil equivalent (“Boe”) per day, a Company record

As of March 31, 2025, TPL’s royalty acreage had an estimated 5.9 net well permits, 12.9 net drilled but uncompleted wells ("DUCs"), and 5.4 net completed but not producing wells ("CUPs"). Net well permits, DUCs, and CUPs total 24.3 net wells(1), which represents a Company record. TPL had 90.2 net producing wells, and net producing wells added during the quarter had an average lateral length of approximately 8,988 feet.

Water Services and Operations segment revenues of $69.4 million, a Company record

Consolidated net income of $120.7 million, or $5.24 per share (diluted)

Adjusted EBITDA(2) of $169.4 million

Free cash flow(2) of $126.6 million

Quarterly cash dividend of $1.60 per share was paid on March 17, 2025
(1)

Total may not foot due to rounding.
(2)

Reconciliations of non-GAAP performance measures are provided in the tables below.
“Results for the first quarter of 2025 represented an excellent start to the year as the Company set quarterly records for oil and gas royalty production and Water Services and Operations segment revenue," said Tyler Glover, Chief Executive Officer of the Company. “TPL's resilient business model, high-margin cash flows, and fortress balance sheet enhances the Company's ability to weather a potential industry downcycle. Near-term activity levels remain strong around our footprint, but should economic volatility persist, our business retains numerous naturally embedded hedges to mitigate the potential direct impact of lower oil prices. In addition, TPL’s exceptional financial profile and strong liquidity with ample cash and no debt also allows us to be opportunistic during periods of uncertainty.”

Financial Results for the First Quarter of 2025 - Sequential

The Company reported net income of $120.7 million for the first quarter of 2025 compared to net income of $118.4 million for the fourth quarter of 2024.

Total revenues for the first quarter of 2025 were $196.0 million compared to $185.8 million for the fourth quarter of 2024. The increase in total revenues was primarily due to a $14.3 million increase in oil and gas royalty revenue and a $2.1 million increase in water sales compared to the fourth quarter of 2024. The Company’s share of production was 31.1 thousand Boe per day for the first quarter of 2025 versus 29.1 thousand Boe per day for the fourth quarter of 2024, and the average realized price was $41.58 per Boe in the first quarter of 2025 compared to $37.93 per Boe in the fourth quarter of 2024.

TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.

Total operating expenses were $45.9 million for the first quarter of 2025 compared to $43.2 million for the fourth quarter of 2024. The increase in operating expenses was principally related to a $1.8 million increase in water service-related expenses during the first quarter of 2025 compared to the fourth quarter of 2024.

Financial Results for the First Quarter of 2025 - Year Over Year

Total revenues for the first quarter of 2025 were $196.0 million compared to $174.1 million for the first quarter of 2024. The increase in total revenues was primarily due to a $19.1 million increase in oil and gas royalty revenue and a $4.7 million increase in produced water royalties. The Company’s share of production was 31.1 thousand Boe per day for the first quarter of 2025 versus 24.8 thousand Boe per day for the first quarter of 2024, and the average realized price was $41.58 per Boe for the first quarter of 2025 versus $42.71 per Boe for the first quarter of 2024. Produced water royalties increased principally due to an increase in produced water volumes. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.

Total operating expenses were $45.9 million for the first quarter of 2025 compared to $38.1 million for the first quarter of 2024. The increase in operating expenses was principally related to a $6.8 million increase in depletion expense associated with oil and gas royalty interests acquired during the second half of 2024.

Quarterly Dividend Declared

On May 6, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $1.60 per share, payable on June 16, 2025 to stockholders of record at the close of business on June 2, 2025.

Conference Call and Webcast Information

The Company will hold a conference call on Thursday, May 8, 2025 at 9:30 a.m. Central Time to discuss first quarter results. A live webcast of the conference call will be available on the Investors section of the Company’s website at www.TexasPacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

The conference call can also be accessed by dialing 1-877-407-4018 or 1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13753234. The telephone replay will be available starting shortly after the call through May 22, 2025.

About Texas Pacific Land Corporation

Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 873,000 acres of land, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provide revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fee payments for use of the Company’s land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and/or treated produced water, revenue from the Company’s oil and gas royalty interests, and revenue related to saltwater disposal on the Company’s land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits principally related to a variety of land uses including, but not limited to, midstream infrastructure projects and hydrocarbon processing facilities.

Visit TPL at www.TexasPacific.com.

https://www.businesswire.com/news/home/20250507740663/en/Texas-Pacific-Land-Corporation-Announces-First-Quarter-Results

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