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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.
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Q2 2025 earnings summary7 Aug, 2025

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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Frequently asked questions

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. It primarily owns, leases, or accesses real estate properties and resources. The company's portfolio of mineral interests comprises brine disposal plants, oil and gas tracts, water injection wells associated with oil production, oil and gas royalties, coal bed methane leases, and disposal wells for produced water from natural gas reserves. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.

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