Texas Pacific Land Corporation

TPL · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

TPL keeps setting records on its West Texas royalty, land and water acreage even with oil near $65, and is now selling that ground and water to the power plants and data centres moving in. Almost all of that second business is still unsigned. How much of its land is now under contract with data centre builders?

  • The legacy business grows without help from oil prices.

    Wells on TPL land keep getting longer, so the same acreage yields more without new rigs, and water sales passed one million barrels a day for the first time. TPL does not hedge, so a $10 rise in oil is worth about $50 million a year. How much of the royalty growth came from acquisitions rather than drilling?

  • Land and water for data centres are the real story now.

    The first one is signed: a $43 million land sale paid over 20 years plus a water supply deal, for Project Kilby, the Chevron power and data centre build in Reeves County. Management says it is in advanced talks on 25 gigawatts of projects. Which of the 25 gigawatts of projects has a signed agreement today?

  • The new businesses spend before they earn.

    Water sales volumes fell 19% in Q2 FY2026 as operators shifted work out of the Delaware Basin on weak gas prices. Orla desalination is only now being commissioned, months late, so the royalty business is still paying for it.

Bullish
  • Royalty volume growth
    The bull case is that TPL keeps raising royalty and water volumes through acquisitions and longer wells, so cash flow grows even when oil prices do not.
  • Countercyclical buying power
    A debt-free balance sheet and large cash balance let TPL buy minerals, surface and pore space when prices are low, which adds production for years.
  • Data center land and water
    Land, water and gas access across West Texas give TPL a paying role in power and data center projects that sits outside the oil and gas royalty business.
Bearish
  • Depleting well backlog
    The bear case is that the basin is working through wells already drilled, so completions on TPL's acreage slow before drilling activity recovers.
  • Unhedged oil exposure
    TPL sells its oil without hedges, so weaker prices cut revenue and cash flow directly no matter how much volume the company produces.
  • Unproven next-gen projects
    Data center agreements and desalination are still largely in negotiation or testing, so the revenue they might add keeps moving further into the future.
See the full bull & bear case
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Sale≥$50KAug 21Oct 8
Donald Trump
Republican · Executive
Purchase≥$1KJul 23Sep 22
Donald Trump
Republican · Executive
Sale≥$100KJun 12Aug 22
Donald Trump
Republican · Executive
Purchase≥$100KMay 11Jul 1
Donald Trump
Republican · Executive
Purchase≥$15KMar 2May 13

Congressional trading data provided by QuiverQuant

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Product segmentsGeography
FY2025 · USD

How Texas Pacific Land turned $798.2M of revenue into $592.2M of operating income.

Revenue
Oil And Gas Royalties$411.7M▲ 10.27% YoY
Water Sales And Royalties$169.7M▲ 12.59% YoY
Produced Water Royalties$124.2M▲ 19.30% YoY
Easement and Sundry$91.8M▲ 25.28% YoY
Land Sales$819K▼ 81.34% YoY
Total revenue$798.2M
Gross profit$682.1M85.5%
Operating income$592.2M74.2%
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