01—Abstract
Summary
Summary of the 10-Q filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Texas Pacific Land Corporation (TPL) reported net income of $153.9 milliona for the three months ended June 30, 2026, up from $116.1 million a year earlier, and $296.8 million for the six months, versus $236.8 million.
Total revenues were $246.1 millionb for the quarter, compared with $187.5 million, and $482.9 million for the six months, compared with $383.5 million. Oil and gas royalties were the largest driver, rising to $145.6 million from $95.0 million, with average realized pricing of $42.17 per Boe and production of 39.7 thousand Boe per day. Water sales of $39.7 million and produced water royalties of $37.1 million also grew, while easements and other surface-related income declined to $23.7 million from $36.2 million, mainly due to lower pipeline easement income.
The balance sheet strengthened, with cash and cash equivalents of $248.6 millionc at June 30, 2026, up from $144.8 million at December 31, 2025, and total assets of $1.86 billion. The Company's $500 million Credit Facility remained undrawn. During the first half of 2026, TPL acquired land for $110.2 million, including land tied to data center and power generation initiatives, and entered into a land sale with Chevron U.S.A.
Inc. for Project Kilby, recognizing $20.9 milliond of land sales revenue and a financing receivable. Operating cash flow was $334.9 million for the six months, and free cash flow, as defined by the Company, was $291.9 million. The Board declared a quarterly dividend of $0.60 per share on August 4, 2026, payable September 15, 2026.
No shares were repurchased in the quarter, with $170.2 million remaining under the repurchase authorization. Management notes that oil prices rose substantially in 2026 amid Middle East conflict and Strait of Hormuz disruptions, and that the duration and impact of this conflict on future prices remain uncertain. Management also highlighted the company's desalination facility, which has commenced commissioning, with an initial capacity of 10,000 barrels of water per day.
02—Key points
Key Highlights
- Net income rose to $153.9 million for Q2 2026 from $116.1 million in Q2 2025; six-month net income was $296.8 million versus $236.8 million.
- Oil and gas royalties increased to $145.6 million in Q2 2026 from $95.0 million, with realized pricing of $42.17 per Boe and production of 39.7 thousand Boe per day.
- Water sales grew to $39.7 million from $25.6 million, and produced water royalties rose to $37.1 million from $30.7 million in the quarter.
- Easements and other surface-related income fell to $23.7 million in Q2 2026 from $36.2 million, principally due to a $15.0 million decrease in pipeline easements.
- Cash and cash equivalents were $248.6 million at June 30, 2026, versus $144.8 million at year-end 2025; the $500 million Credit Facility remained undrawn.
- Land acquisitions totaled $110.2 million in the first half of 2026, and the Chevron Project Kilby land sale generated $20.9 million of land sales revenue plus a financing receivable.
- The Board declared a $0.60 per share quarterly dividend on August 4, 2026; $83.2 million in dividends were paid in the first six months.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $246.06M$187.54M | +31.2% |
| Operating Expenses | $54.24M$43.79M | +23.9% |
| Operating Income | $191.82M$143.75M | +33.4% |
| Net Income | $153.93M$116.14M | +32.5% |
| EPS (Basic) | $2.23$1.68 | +32.7% |
| EPS (Diluted) | $2.23$1.68 | +32.7% |
| Shares Outstanding (Basic) | 68.97M68.96M | 0.0% |
| Shares Outstanding (Diluted) | 69.03M69.04M | 0.0% |
05—Questions
Frequently Asked Questions
How did TPL's core revenue streams perform in the second quarter of 2026?
Oil and gas royalties rose to $145.6 million from $95.0 million, and water sales rose to $39.7 million from $25.6 million. Produced water royalties increased to $37.1 million from $30.7 million. Easements and other surface-related income declined to $23.7 million from $36.2 million, principally due to lower pipeline easement income.
What drove the increase in net income?
Total revenues increased to $246.1 million from $187.5 million for the quarter, while total operating expenses rose to $54.2 million from $43.8 million. Operating income reached $191.8 million, compared with $143.8 million in the prior-year quarter, and net income was $153.9 million.
What is the status of TPL's liquidity and capital allocation?
Cash and cash equivalents were $248.6 million at June 30, 2026, and the $500 million Credit Facility was undrawn. Management set a target cash balance of approximately $700 million and said it would seek to deploy most free cash flow above this level toward special dividends and/or share repurchases. No shares were repurchased in the six months ended June 30, 2026, and $170.2 million remained under the repurchase authorization.
What major new initiatives or transactions did TPL disclose?
TPL acquired land for $110.2 million in the first half of 2026 for data center and power generation initiatives in Shackelford and Jones Counties, and also acquired land in Winkler County. It entered into an agreement with Chevron U.S.A. Inc. for Project Kilby in Reeves County, selling land for $42.5 million in aggregate consideration. The company also completed construction of a desalination facility with an initial capacity of 10,000 barrels of water per day, and commissioning has commenced.
What factors could affect TPL's future results?
Management noted that oil prices increased to over $90 per barrel from March through early June 2026 amid the Iran conflict and Strait of Hormuz disruptions, with the impact on future prices uncertain. Easements and other surface-related income are dependent on operator development decisions and are unpredictable. The company also disclosed an unresolved matter regarding ad valorem taxes on historical royalty interests, for which it has not recorded a loss recovery receivable.
06—Continue