Texas Pacific Land (TPL) investor relations material

Executive summary

• Achieved record quarterly and fiscal year revenues, net income, and free cash flow, driven by strong oil and gas royalty production, produced water royalty volumes, and diversified revenue streams including water sales and surface income.

• Oil and gas royalty production averaged 39,700 BOE/day in Q2 2026, up 7% sequentially and 20% year-over-year, with realized prices rising 28%.

• Expanded strategic initiatives in data center and power generation, including Project Kilby and major land acquisitions in Texas totaling over $110 million.

• Completed construction and commissioning of the Orla Phase 2B desalination facility, advancing produced water reuse and sustainability efforts.

• Maintained 100% Permian Basin exposure with ~894,000 surface acres and ~28,000 net royalty acres, supporting robust production and cash flow.

Financial highlights

• Q2 2026 consolidated revenues were $246.1 million, up 31% year-over-year; net income was $153.9 million, and adjusted EBITDA reached $215.6 million with an 88% margin.

• Free cash flow for Q2 2026 was $155.5 million, up 14% sequentially and 20% year-over-year; $291.9 million for the first half of 2026.

• FY 2025 revenues were $798.2 million, adjusted EBITDA $687 million (86% margin), and free cash flow $498 million.

• Water sales and produced water royalties contributed 37% of consolidated revenue in FY 2025.

• No debt and a strong cash position of $249 million as of June 30, 2026; $500 million credit facility undrawn.

Outlook and guidance

• Fiscal year capital expenditure guidance reaffirmed at $65–$75 million.

• Management expects continued growth in power and compute opportunities, with advanced discussions on 25GW of projects and at least one major definitive agreement anticipated.

• Produced water royalty rates expected to remain steady or increase due to contract escalators and growing pore space value.

• Ongoing investments in water infrastructure and desalination technology are expected to support future growth.

• Revenue streams remain sensitive to commodity prices and customer development decisions.