Texas Pacific Land Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue and net income rose sequentially: Total revenues were $236.8 million, up from $211.6 million in the fourth quarter of 2025. Net income was $142.9 million, or $2.07 per diluted share, against $123.3 million. Source
• Land and Resource Management revenue rose: Land and Resource Management revenues were $153.6 million, against $113.4 million in the fourth quarter. The segment carries all oil and gas royalty revenue. Source
• Realized price rose from prior quarter: Average realized price was $37.06 per Boe, up from $29.33 in the fourth quarter and down from $41.58 a year earlier. Source
• Operating expenses fell sequentially: Total operating expenses were $54.5 million, down from $62.3 million, reflecting lower depreciation, depletion and amortization and lower water service-related expenses. Source
• Permits and drilled wells reported: As of March 31, 2026, royalty acreage had an estimated 5.8 net well permits, 9.6 net drilled but uncompleted wells and 5.2 net completed but not producing wells, totaling 20.7 net wells. Source
• Free cash flow reached $136.4 million: Free cash flow was $136.4 million, against $118.9 million in the fourth quarter and $126.6 million a year earlier. Adjusted EBITDA was $181.4 million. Source

“TPL generated record quarterly revenue and net income this quarter, supported by robust volumes across oil and gas royalties, water sales, and produced water royalties.”

Tyler Glover, Chief Executive Officer of the Company

Guidance

What changed from last quarter

• New: Sold land for $42.5 million under a financing arrangement with a developer of a power plant that supports data center operations. $20.9 million recognized as land sale revenue; a financing receivable recorded. Source
• New: Entered a separate agreement to supply water to the same project. Source
• New: Peter Doyle appointed to the Board on May 5, 2026, and to the strategic acquisitions committee. Source

Results and growth drivers

• Revenue and net income rose sequentially: Total revenues were $236.8 million, up from $211.6 million in the fourth quarter of 2025. Net income was $142.9 million, or $2.07 per diluted share, against $123.3 million. Source
• Year-over-year growth from land and water: Revenue was up from $196.0 million in the first quarter of 2025, led by land sales, water sales, oil and gas royalties and produced water royalties. Source
• Royalty revenue gains offset by water: Oil and gas royalty revenue rose $21.4 million and land sale revenue rose $20.9 million, partly offset by a $13.9 million drop in water sales. Source

Segments and regions

• Land and Resource Management revenue rose: Land and Resource Management revenues were $153.6 million, against $113.4 million in the fourth quarter. The segment carries all oil and gas royalty revenue. Source
• Water Services revenue lower sequentially: Water Services and Operations revenues were $83.3 million, down from $98.2 million in the fourth quarter of 2025, with lower water sales on volumes and pricing.
• Segment operating income split: Operating income was $128.8 million for Land and Resource Management and $53.5 million for Water Services and Operations. Consolidated operating income was $182.3 million. Source

“The urgency amongst hyperscalers, AI labs, and developers to advance projects in West Texas has noticeably increased compared to a year ago”

Tyler Glover, Chief Executive Officer of the Company

Royalty volumes and realized prices

• Production edged down sequentially: Share of production was 37.1 thousand Boe per day, down from 37.5 thousand in the fourth quarter and up from 31.1 thousand a year earlier. Source
• Realized price rose from prior quarter: Average realized price was $37.06 per Boe, up from $29.33 in the fourth quarter and down from $41.58 a year earlier. Source
• Produced water royalties rose on volume: Produced water royalties were $33.5 million, flat on the fourth quarter and up from $27.7 million a year earlier on higher produced water volumes. Source
• Water sales volumes and pricing fell: Water sales were $46.9 million, down from $60.7 million, with volumes averaging 819 thousand barrels a day against 1,001 thousand in the fourth quarter. Source

Costs, margins and pricing

• Operating expenses fell sequentially: Total operating expenses were $54.5 million, down from $62.3 million, reflecting lower depreciation, depletion and amortization and lower water service-related expenses. Source
• General and administrative costs rose: General and administrative expenses rose $2.2 million from the fourth quarter, partly offsetting the lower depreciation and water service costs. Source
• Year-over-year cost increase: Compared with $45.9 million a year earlier, operating expenses rose on higher water service-related expenses and general and administrative expenses. Source

Demand and the well inventory

• Permits and drilled wells reported: As of March 31, 2026, royalty acreage had an estimated 5.8 net well permits, 9.6 net drilled but uncompleted wells and 5.2 net completed but not producing wells, totaling 20.7 net wells. Source
• Producing wells and lateral length: Net producing wells totaled 124.4. Wells added in the quarter averaged a lateral of about 10,650 feet, against about 10,910 feet in the fourth quarter. Source
• West Texas commercial talks progressing: Management said its ongoing commercial conversations in West Texas, including the data center and power generation area, are progressing well. Source

Capital, cash and returns

• Free cash flow reached $136.4 million: Free cash flow was $136.4 million, against $118.9 million in the fourth quarter and $126.6 million a year earlier. Adjusted EBITDA was $181.4 million. Source
• Fixed asset purchases fell sharply: Purchases of fixed assets were $7.3 million, against $28.7 million in the fourth quarter and $9.0 million a year earlier. Current income tax expense was $37.1 million. Source
• Diluted share count broadly stable: Weighted average diluted shares were 69,009,942, against 69,020,805 in the fourth quarter. Diluted earnings per share were $2.07. Source

Strategy and investment

• Next-generation efforts continue: The prior release said the company planned to keep deploying resources to accelerate commercialization of next-generation efforts in data centers and produced water desalination.
• Water supply tied to power project: Under the land transaction the company secured a water supply agreement for gas-powered generation and an option to supply more water to the data center facility. Source
• Unhedged commodity position stated: Management said the company's commodity position is unhedged, so it will capture commodity price changes in full. Source

People and leadership

• Doyle to stand for re-election: Peter Doyle, appointed to the Board on May 5, 2026, will stand for re-election at the 2026 Annual Meeting. Source
• Doyle tied to Horizon Kinetics: Peter Doyle is a co-founder and Co-Chief Executive Officer of Horizon Kinetics, which is the company's largest shareholder through owned subsidiaries. Source
• 2026 annual meeting date set: The company intends to hold its 2026 Annual Meeting of Stockholders on November 5, 2026, in Dallas, Texas. Source

Coming up, as management said on 6 May 2026

• Milestones in produced water and power land: Management said it is closing in on significant milestones in its emerging produced water desalination and data center and power generation land work. Source
• 2027 annual meeting planned: The company intends to hold its 2027 Annual Meeting of Stockholders on May 6, 2027, with details to follow in proxy filings. Source

Figures management reported

Risks management discussed

• Demand: Revenue streams depend on commodity prices and on development and operating decisions made by customers, according to the company. Source

Earlier plans management reported on

• On track: Management said the Orla facility is nearing completion and is on track to receive its first inlet barrels in the coming weeks. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.