Texas Pacific Land Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and diluted EPS rose: Consolidated net income was $153.9 million, or $2.23 per diluted share, against $142.9 million in the first quarter. Management described this as record net income. Source
• Revenue rose on royalty and surface income: Total revenues were $246.1 million, up from $236.8 million in the first quarter, with growth led by oil and gas royalty and easements income. Source
• Realized price per Boe climbed: The average realized price was $42.17 per Boe, against $37.06 per Boe in the first quarter, on 39.7 thousand Boe per day of production. Source
• Royalty production reached record daily level: Oil and gas royalty production averaged 39.7 thousand Boe per day, which management reported as a record for daily production. Source
• Well pipeline fell to 18.4 net wells: Net permits, DUCs and completed-not-producing wells totaled 18.4 net wells at June 30, against 20.7 net wells at March 31. Source
• Project Kilby involvement disclosed: Management said TPL is providing land and water resources for Project Kilby, a multi-gigawatt power and data center hub in Reeves County. Source
• Orla desalination facility completed construction: The Phase 2B produced water desalination facility in Orla finished construction and began commissioning, with 10,000 inlet barrels per day capacity. Source

“This quarter, we delivered record results across major financial and operating metrics and achieved significant milestones within our key growth initiatives,”

Tyler Glover, Chief Executive Officer of the Company

Guidance

What changed from last quarter

• New: Agreement with a Chevron subsidiary to supply land and brackish water for Project Kilby, a power generation facility serving a data center in Reeves County. Source
• New: Land acquired in Shackelford and Jones Counties for data center and power efforts beyond the immediate Permian Basin. Source

Results and growth drivers

• Net income and diluted EPS rose: Consolidated net income was $153.9 million, or $2.23 per diluted share, against $142.9 million in the first quarter. Management described this as record net income. Source
• Revenue rose on royalty and surface income: Total revenues were $246.1 million, up from $236.8 million in the first quarter, with growth led by oil and gas royalty and easements income. Source
• Realized price per Boe climbed: The average realized price was $42.17 per Boe, against $37.06 per Boe in the first quarter, on 39.7 thousand Boe per day of production. Source
• Royalty production reached record daily level: Oil and gas royalty production averaged 39.7 thousand Boe per day, which management reported as a record for daily production. Source
• Adjusted EBITDA and free cash flow rose: Adjusted EBITDA was $215.6 million and free cash flow was $155.5 million, against $181.4 million and $136.4 million in the first quarter. Source

Segments, water and regions

• Land and Resource Management revenue higher: Land and Resource Management segment revenue was $163.9 million, against $153.6 million in the first quarter. Source
• Water Services revenue slightly lower: Water Services and Operations segment revenue was $82.2 million, against $83.3 million in the first quarter. Source
• Produced water royalties at record volume: Produced water royalty revenue was $37.1 million on 4.9 million barrels per day of volume, up from $33.5 million in the first quarter. Source
• Water sales fell on lower volumes: Water sales volumes averaged 663 thousand barrels per day, down from 819, and average realized pricing rose. Source
• Activity extends beyond the Permian: Management said the data center and power efforts are expanding into areas beyond the immediate Permian Basin. Source

“TPL generated record revenue, net income, and free cash flow this quarter, supported by record oil and gas royalty daily production and produced water royalty volumes.”

Tyler Glover, Chief Executive Officer of the Company

Costs, margins and pricing

• Total operating expenses little changed: Total operating expenses were $54.2 million, against $54.5 million in the first quarter. Source
• Water costs fell, depreciation rose: Water service-related expenses fell $2.7 million and depreciation, depletion and amortization rose $2.6 million, both sequentially. Source
• Six-month costs rose on water and depreciation: Compared with the first half of 2025, water service costs rose $6.3 million, depreciation rose $5.0 million and G&A rose $4.9 million. Source

Demand and well activity

• Well pipeline fell to 18.4 net wells: Net permits, DUCs and completed-not-producing wells totaled 18.4 net wells at June 30, against 20.7 net wells at March 31. Source
• Producing wells rose and laterals lengthened: Net producing wells were 131.9 at June 30, against 124.4 at March 31. New wells averaged about 10,438 feet of lateral length. Source
• Easements and royalties drove revenue gain: Easements and other surface-related income rose $6.3 million sequentially, alongside a $27.4 million rise in oil and gas royalty revenue. Source

Capital, cash and dividends

• Land purchases totaled $110.2 million: Aggregate land acquisitions were $110.2 million in Shackelford and Jones Counties and Winkler County, tied to data center and power efforts. Source
• Dividends paid through first half: Total cash dividends paid through June 30, 2026 were $83.2 million for the six months. Source
• Free cash flow defined for capital use: Management defines free cash flow as funds available for acquisitions and for returning capital through dividends and share repurchases. Source

Strategy and data center expansion

• Project Kilby involvement disclosed: Management said TPL is providing land and water resources for Project Kilby, a multi-gigawatt power and data center hub in Reeves County. Source
• Orla desalination facility completed construction: The Phase 2B produced water desalination facility in Orla finished construction and began commissioning, with 10,000 inlet barrels per day capacity. Source
• Desalination pitched as proprietary solution: Management described the desalination work as a proprietary potential solution to produced water injection demands, with commercial uses for output streams. Source
• Peter Doyle joined the Board: Peter Doyle was appointed to the Board on May 5, 2026. He co-founded Horizon Kinetics, which is TPL's largest stockholder. Source

Coming up, as management said on 5 August 2026

• Dividend payable September 15: The declared $0.60 dividend is payable September 15, 2026 to holders of record at the close of business September 1, 2026. Source

Figures management reported

Risks management discussed

• External: Revenue is directly affected by commodity prices and by customers' development and operating decisions. Source

Earlier plans management reported on

• Not stated: The first-quarter release said the facility was on track for first inlet barrels. The second-quarter release reports construction completed and commissioning begun, without a status statement.

Other quarters

• Q1 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.