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Texas Pacific Land (TPL) investor relations material
Texas Pacific Land Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved record oil and gas royalty production of 33,200 Boe/d in Q2 2025, with strong growth in produced water royalties and surface-related income.
Revenue for Q2 2025 was $187.5M, up from $172.3M in Q2 2024; net income rose to $116.1M from $114.6M year-over-year.
Maintained a debt-free balance sheet with $543.9M in cash and cash equivalents as of June 30, 2025.
Continued progress on desalination facility construction, targeting late 2025 service.
Paid $74.2M in dividends through June 30, 2025, including a quarterly dividend of $1.60 per share.
Financial highlights
Q2 2025 total revenue was $188M; adjusted EBITDA was $166M; free cash flow reached $130M, up 12% year over year.
Oil and gas royalty revenue was $95M, produced water royalties $31M, and water sales declined to $25.6M due to lower volumes.
Operating income for Q2 2025 was $143.8M; diluted EPS was $5.05.
Six-month total revenue was $383.5M, up from $346.5M year-over-year.
Adjusted EBITDA margin for Q2 2025 was 89%.
Outlook and guidance
Q3 water business expected to be strong; Q4 activity will depend on commodity prices.
Management targets a cash balance of ~$700M, with excess to be returned to shareholders via dividends and buybacks.
Produced water management and desalination initiatives are expected to drive future revenue and support Permian Basin development.
Ready to deploy capital opportunistically through buybacks, organic investment, or acquisitions if downturn persists.
The company expects to meet all capital and operational needs for at least the next 12 months with current liquidity.
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