01—Abstract
Summary
Summary of the 10-K filed February 18, 2026. Cited figures are marked; the original filing is the authoritative source.
Texas Pacific Land Corporation reported record 2025 results.
Revenues were $798.2 milliona, up from $705.8 million in 2024, and net income was $481.4 million, or $6.97 per diluted share, compared with $454.0 million in 2024. Oil and gas royalty revenue rose to $411.7 million from $373.3 million on higher production of 34.6 thousand Boe per day, offset by lower realized prices of $34.18 per Boe versus $39.87. The Water Services and Operations segment generated $307.5 million of revenue, including $169.7 million of water sales and $124.2 million of produced water royalties, and segment net income of $159.0 million.
Adjusted EBITDA was $687.4 millionb and free cash flow was $498.3 million. The company expanded its asset base through about $536 million of acquisitions, including 17,306 NRA in the Midland Basin for $450.7 million, and made a $50.0 million minority investment in Bolt Data & Energy, Inc. tied to data center development on its land. It also entered a $500.0 million revolving Credit Facility dated October 23, 2025, which was undrawn as of the filing date, and effected a three-for-one stock split on December 22, 2025.
Cash and cash equivalents were $144.8 millionc at year end, versus $369.8 million in 2024, and the company paid $2.13 per share in regular dividends for 2025, with a $0.60 quarterly dividend declared on February 10, 2026. The filing notes several risks, including commodity price exposure, reliance on operators' drilling decisions, a Texas Railroad Commission seismic response area program that could limit produced water disposal, and an ad valorem tax reimbursement dispute with a third party for which no receivable has been recorded. Deloitte & Touche LLP issued an unqualified opinion on both the financial statements and internal control over financial reporting, and the filing reports no material pending legal proceedings.
02—Key points
Key Highlights
- Record 2025 results: revenues of $798.2 million (vs. $705.8 million in 2024) and net income of $481.4 million, or $6.97 per diluted share.
- Oil and gas royalty revenue of $411.7 million rose on production of 34.6 thousand Boe per day (vs. 26.8), while realized prices fell to $34.18 per Boe from $39.87.
- Water Services and Operations segment revenue of $307.5 million, including $169.7 million of water sales and $124.2 million of produced water royalties; segment net income of $159.0 million.
- Adjusted EBITDA of $687.4 million and free cash flow of $498.3 million, both non-GAAP measures reconciled in the filing.
- Acquired 17,306 NRA in the Midland Basin for $450.7 million in November 2025 and made a $50.0 million minority investment in Bolt Data & Energy, Inc.
- Entered a $500.0 million revolving Credit Facility maturing October 23, 2029; no draws were made and the facility was undrawn as of the filing date.
- Paid $2.13 per share in regular dividends for 2025, declared a $0.60 quarterly dividend on February 10, 2026, and effected a three-for-one stock split on December 22, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 18, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $798.19M$705.82M | +13.1% |
| Operating Expenses | $206.03M$166.69M | +23.6% |
| Operating Income | $592.16M$539.14M | +9.8% |
| Net Income | $481.38M$453.96M | +6.0% |
| EPS (Basic) | $6.98$6.58 | +6.1% |
| EPS (Diluted) | $6.97$6.57 | +6.1% |
| Shares Outstanding (Basic) | 68.95M68.96M | 0.0% |
| Shares Outstanding (Diluted) | 69.03M69.06M | 0.0% |
05—Questions
Frequently Asked Questions
How much did TPL earn and how did its revenue mix change in 2025?
Net income was $481.4 million, or $6.97 per diluted share, versus $454.0 million in 2024. Total revenues were $798.2 million, up from $705.8 million. Oil and gas royalties were $411.7 million, water sales $169.7 million, produced water royalties $124.2 million, and easements and other surface-related income $91.8 million, with land sales of $0.8 million.
What drove the change in oil and gas royalty revenue?
Royalty revenue increased to $411.7 million from $373.3 million, principally on higher production volumes of 34.6 thousand Boe per day versus 26.8. The filing states that realized prices decreased to $34.18 per Boe from $39.87. Oil realized prices were $64.69 per Bbl versus $75.80, while natural gas realized prices were $1.73 per Mcf versus $1.17.
How much cash did the company have and how did it return capital to stockholders?
Cash and cash equivalents were $144.8 million at December 31, 2025, down from $369.8 million a year earlier. During 2025 the company paid $147.8 million in dividends ($2.13 per share regular) and repurchased $8.4 million of common stock. The company has a stated target cash balance of approximately $700 million, above which it seeks to deploy free cash flow mainly into special dividends and/or share repurchases.
What are the main risks flagged in the filing?
The filing highlights oil and gas price volatility, its reliance on third-party operators' development decisions, and the Texas Railroad Commission's seismic response areas, which could limit produced water disposal. It also flags uncertainty around the Transmissive produced water desalination project, cybersecurity threats, and a third party's refusal to continue paying ad valorem taxes on historical royalty interests. The company has accrued and paid those taxes since January 1, 2022 and recorded no reimbursement receivable.
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