Texas Pacific Land Corporation Announces First Quarter Results

– Earnings Call to be Held Thursday, May 7, 2026 at 9:30 am CT

DALLAS--(BUSINESS WIRE)--Texas Pacific Land Corporation (NYSE: TPL) (the “Company,” “TPL,” “we,” “our,” or “us”), one of the largest landowners in the State of Texas with surface and royalty ownership that provides revenue opportunities through the support of energy production, today announced its financial and operating results for the first quarter of 2026.

First Quarter 2026 Highlights

• Entered into an arrangement with a developer of a power generation plant to support data center operations. In conjunction with this arrangement, we sold land for aggregate consideration of $42.5 million pursuant to a financing arrangement with the developer, resulting in immediate recognition of $20.9 million in land sale revenue and the recording of a financing receivable. Additionally, we entered into a separate agreement to supply water to the project.

• On May 5, 2026, TPL’s board of directors (the “Board”) appointed Peter Doyle to the Board. Mr. Doyle is a co-founder and the Co-Chief Executive Officer of Horizon Kinetics, which, through various owned subsidiaries, is TPL’s largest shareholder.

• Oil and gas royalty production of 37.1 thousand barrels of oil equivalent (“Boe”) per day

• As of March 31, 2026, TPL’s royalty acreage had an estimated 5.8 net well permits, 9.6 net drilled but uncompleted wells (“DUCs”), and 5.2 net completed but not producing wells (“CUPs”), totaling 20.7 net wells.⁽¹⁾ TPL had 124.4 net producing wells as of March 31, 2026, and net producing wells added during the quarter had an average lateral length of approximately 10,650 feet.

• Land and Resource Management segment revenues of $153.6 million

• Water Services and Operations segment revenues of $83.3 million

• Consolidated net income of $142.9 million, or $2.07 per share (diluted)

• Adjusted EBITDA⁽²⁾ of $181.4 million

• Free cash flow⁽²⁾ of $136.4 million

• Quarterly cash dividend of $0.60 per share was paid on March 16, 2026

^(1) Total may not foot due to rounding.

^(2) Reconciliations of non-GAAP performance measures are provided in the tables below.

“For the first quarter of 2026, TPL’s core business performance remained strong, and we are closing in on significant milestones in our emerging opportunities in produced water desalination and land opportunities involving data centers and power generation,” said Tyler Glover, Chief Executive Officer of the Company. “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. With our unhedged commodity position, we will fully capture the upside from elevated commodity prices. During the quarter, we completed a land sale related to a large-scale data center and power generation project. As part of that transaction, TPL secured a water supply agreement for the gas-powered generation and an option to provide additional water to the data center facility. The urgency amongst hyperscalers, AI labs, and developers to advance projects in West Texas has noticeably increased compared to a year ago, and our ongoing commercial conversations in this area are progressing well. In addition, our 10,000 barrel per day produced water desalination R&D test facility in Orla, Texas is nearing completion and is on track to receive its first inlet barrels in the coming weeks.”

Financial Results for the First Quarter of 2026 - Sequential

The Company reported net income of $142.9 million for the first quarter of 2026 compared to net income of $123.3 million for the fourth quarter of 2025.

Total revenues for the first quarter of 2026 were $236.8 million compared to $211.6 million for the fourth quarter of 2025. The increase in total revenues was primarily due to a $21.4 million increase in oil and gas royalty revenue and a $20.9 million increase in land sale revenue, partially offset by a $13.9 million decrease in water sales compared to the fourth quarter of 2025. The Company’s average realized price was $37.06 per Boe in the first quarter of 2026 compared to $29.33 per Boe in the fourth quarter of 2025, and the Company’s share of production was 37.1 thousand Boe per day for the first quarter of 2026 compared to 37.5 thousand Boe per day for the fourth quarter of 2025. Water sales decreased due to a decrease in both water sales volumes and pricing. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.

Total operating expenses were $54.5 million for the first quarter of 2026 compared to $62.3 million for the fourth quarter of 2025. The decrease in operating expenses was principally related to a $7.9 million decrease in depreciation, depletion and amortization expense and a $3.2 million decrease in water service-related expenses, partially offset by a $2.2 million increase in general and administrative expenses during the first quarter of 2026 compared to the fourth quarter of 2025.

Financial Results for the First Quarter of 2026 - Year Over Year

The Company reported net income of $142.9 million for the first quarter of 2026 compared to net income of $120.7 million for the first quarter of 2025.

Total revenues for the first quarter of 2026 were $236.8 million compared to $196.0 million for the first quarter of 2025. The increase in total revenues was primarily due to a $20.9 million increase in land sales, an $8.1 million increase in water sales, a $6.9 million increase in oil and gas royalty revenue, and a $5.8 million increase in produced water royalties during the first quarter of 2026 compared to the same period of 2025. The Company’s share of production was 37.1 thousand Boe per day for the first quarter of 2026 compared to 31.1 thousand Boe per day for the same period of 2025, and the Company’s average realized price was $37.06 per Boe for the first quarter of 2026 compared to $41.58 per Boe for the same period of 2025. Produced water royalties increased due to increased produced water volumes, and water sales increased due to both increased volumes and pricing. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.

Total operating expenses were $54.5 million for the first quarter of 2026 compared to $45.9 million for the same period of 2025. The increase in operating expenses was principally related to an increase of $3.2 million in water service-related expenses, an increase of $2.6 million in general and administrative expenses, and a $2.1 million increase in depreciation, depletion and amortization.

Quarterly Dividend Declared

On May 5, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.60 per share, payable on June 15, 2026 to stockholders of record at the close of business on June 1, 2026.

Appointment of Director

On May 5, 2026, TPL’s Board appointed Peter Doyle to the Board. Mr. Doyle will stand for re-election at the 2026 Annual Meeting. Mr. Doyle was also appointed to serve on the strategic acquisitions committee of the Board. Mr. Doyle is a co-founder and the Co-Chief Executive Officer of Horizon Kinetics (OTCQX: HKHC).

2026 and 2027 Annual Meetings of Stockholders

The Company intends to hold its 2026 Annual Meeting of Stockholders on November 5, 2026 in Dallas, Texas. The Company also intends to hold its 2027 Annual Meeting of Stockholders on May 6, 2027. Additional details, including the deadlines for stockholder proposals, will be provided in the applicable proxy statements to be filed by the Company with the Securities and Exchange Commission (“SEC”) and in other filings the Company makes with the SEC.

Conference Call and Webcast Information

The Company will hold a conference call on Thursday, May 7, 2026 at 9:30 a.m. Central Time to discuss first quarter results. A live webcast of the conference call will be available on the Investors section of the Company’s website at www.TexasPacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

The conference call can also be accessed by dialing 1-877-407-4018 or 1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13759098. The telephone replay will be available starting shortly after the call through May 21, 2026.

About Texas Pacific Land Corporation

Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 881,000 acres of land, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provides revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fee payments for use of the Company’s land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and/or treated produced water, revenue from the Company’s oil and gas royalty interests, and revenue related to saltwater disposal on the Company’s land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits principally related to a variety of land uses including, but not limited to, midstream infrastructure projects and hydrocarbon processing facilities.

Visit TPL at www.TexasPacific.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this news release are, and certain statements made on the related conference call may be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on TPL’s beliefs, as well as assumptions made by, and information currently available to, TPL, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,” “expect,” and similar expressions or the negative of such terms identify forward-looking statements. Forward-looking statements include, but are not limited to, references to strategies, plans, objectives, expectations, intentions, assumptions, future operations, and prospects; statements regarding anticipated benefits of recent acquisitions or the Permian Basin’s future drilling inventory and energy resources; and other statements that are not historical facts. You should not place undue reliance on forward-looking statements. Although TPL believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, TPL may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may differ materially from those set forth in the forward-looking statements due to a number of factors, including, but not limited to: the initiation or outcome of potential litigation; any changes in general economic and/or industry specific conditions; and the other risks discussed in TPL’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You can access TPL’s filings with the SEC through the SEC’s website at www.sec.gov and TPL strongly encourages you to do so. These forward-looking statements are based only on information available to TPL and speak only as of the date hereof. Except as required by applicable law, TPL undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.

FINANCIAL AND OPERATIONAL RESULTS

(unaudited)

Oil and Gas Activity

The table below provides financial and operational data by royalty stream:

	Three Months Ended
	March 31, 2026		December 31, 2025		March 31, 2025
Company’s share of production volumes ^(1):
Oil (MBbls)		1,345		1,320		1,123
Natural gas (MMcf)		5,794		6,328		5,230
NGL (MBbls)		1,028		1,078		807
Equivalents (MBoe)		3,339		3,453		2,801
Equivalents per day (MBoe/d)		37.1		37.5		31.1
Oil and gas royalty revenue (in thousands):
Oil royalties	$	90,627	$	74,998	$	76,179
Natural gas royalties		9,803		3,856		17,561
NGL royalties		17,737		17,867		17,505
Total oil and gas royalties	$	118,167	$	96,721	$	111,245
Realized prices ^(1):
Oil ($/Bbl)	$	70.57	$	59.48	$	71.05
Natural gas ($/Mcf)	$	1.83	$	0.66	$	3.63
NGL ($/Bbl)	$	18.65	$	17.92	$	23.46
Equivalents ($/Boe)	$	37.06	$	29.33	$	41.58

___________________________
(1)	Term	Definition
	Bbl	One stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil, condensate or NGL.
	Boe	One barrel of oil equivalent.
	MBbls	One thousand barrels of crude oil, condensate or NGL.
	MBoe	One thousand Boe.
	MBoe/d	One thousand Boe per day.
	Mcf	One thousand cubic feet of natural gas.
	MMcf	One million cubic feet of natural gas.
	NGL	Natural gas liquids. Hydrocarbons found in natural gas that may be extracted as liquefied petroleum gas and natural gasoline.

Water Services and Operations Activity

The table below provides financial and operational data for water sales and produced water royalties:

	Three Months Ended
	March 31, 2026		December 31, 2025		March 31, 2025
Water volumes (in MBbls) ^(1):
Water sales		73,747		92,072		71,264
Produced water royalties		414,450		443,578		335,656
Water volumes in barrels per day (in MBbls/d) ^(2):
Water sales		819		1,001		792
Produced water royalties		4,605		4,822		3,730
Water revenue (in thousands):
Water sales	$	46,863	$	60,733	$	38,813
Produced water royalties	$	33,529	$	33,513	$	27,700

___________________________
(1)	MBbl = 1 thousand barrels of water.
(2)	MBbl/d = 1 thousand barrels of water per day.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share amounts) (unaudited)
	Three Months Ended
	March 31, 2026			December 31, 2025			March 31, 2025
Revenues:
Oil and gas royalties	$	118,167		$	96,721		$	111,245
Water sales		46,863			60,733			38,813
Produced water royalties		33,529			33,513			27,700
Easements and other surface-related income		17,315			20,612			18,225
Land sales		20,944			—			—
Total revenues		236,818			211,579			195,983
Expenses:
Salaries and related employee expenses		14,987			14,894			14,572
Water service-related expenses		14,287			17,523			11,126
General and administrative expenses		8,631			6,424			6,072
Depreciation, depletion and amortization		14,043			21,930			11,941
Ad valorem and other taxes		2,542			1,562			2,199
Total operating expenses		54,490			62,333			45,910
Operating income		182,328			149,246			150,073
Interest expense		(992	)		(690	)		—
Other income, net		2,228			3,209			4,321
Income before income taxes		183,564			151,765			154,394
Income tax expense		40,662			28,419			33,742
Net income	$	142,902		$	123,346		$	120,652
Net income per share of common stock
Basic	$	2.07		$	1.79		$	1.75
Diluted	$	2.07		$	1.79		$	1.75
Weighted average number of shares of common stock outstanding
Basic		68,959,013			68,938,230			68,942,085
Diluted		69,009,942			69,020,805			69,017,541

SEGMENT OPERATING RESULTS (dollars in thousands) (unaudited)
	Three Months Ended
	March 31, 2026									December 31, 2025
	Land and Resource Management			Water Services and Operations			Consolidated			Land and Resource Management			Water Services and Operations			Consolidated
Revenues:
Oil and gas royalties	$	118,167		$	—		$	118,167		$	96,721		$	—		$	96,721
Water sales		—			46,863			46,863			—			60,733			60,733
Produced water royalties		—			33,529			33,529			—			33,513			33,513
Easements and other surface-related income		14,449			2,866			17,315			16,662			3,950			20,612
Land sales		20,944			—			20,944			—			—			—
Total revenues		153,560			83,258			236,818			113,383			98,196			211,579
Expenses:
Salaries and related employee expenses		7,558			7,429			14,987			7,457			7,437			14,894
Water service-related expenses		—			14,287			14,287			—			17,523			17,523
General and administrative expenses		5,495			3,136			8,631			3,966			2,458			6,424
Depreciation, depletion and amortization		9,194			4,849			14,043			17,276			4,654			21,930
Ad valorem and other taxes		2,530			12			2,542			1,551			11			1,562
Total operating expenses		24,777			29,713			54,490			30,250			32,083			62,333
Operating income		128,783			53,545			182,328			83,133			66,113			149,246
Interest expense		(793	)		(199	)		(992	)		(552	)		(138	)		(690	)
Other income, net		1,581			647			2,228			2,527			682			3,209
Income before income taxes		129,571			53,993			183,564			85,108			66,657			151,765
Income tax expense		28,648			12,014			40,662			15,566			12,853			28,419
Net income	$	100,923		$	41,979		$	142,902		$	69,542		$	53,804		$	123,346

SEGMENT OPERATING RESULTS (Continued) (dollars in thousands) (unaudited)
	Three Months Ended
	March 31, 2026									March 31, 2025
	Land and Resource Management			Water Services and Operations			Consolidated			Land and Resource Management		Water Services and Operations		Consolidated
Revenues:
Oil and gas royalties	$	118,167		$	—		$	118,167		$	111,245	$	—	$	111,245
Water sales		—			46,863			46,863			—		38,813		38,813
Produced water royalties		—			33,529			33,529			—		27,700		27,700
Easements and other surface-related income		14,449			2,866			17,315			15,336		2,889		18,225
Land sales		20,944			—			20,944			—		—		—
Total revenues		153,560			83,258			236,818			126,581		69,402		195,983
Expenses:
Salaries and related employee expenses		7,558			7,429			14,987			7,404		7,168		14,572
Water service-related expenses		—			14,287			14,287			—		11,126		11,126
General and administrative expenses		5,495			3,136			8,631			3,313		2,759		6,072
Depreciation, depletion and amortization		9,194			4,849			14,043			7,689		4,252		11,941
Ad valorem and other taxes		2,530			12			2,542			2,189		10		2,199
Total operating expenses		24,777			29,713			54,490			20,595		25,315		45,910
Operating income		128,783			53,545			182,328			105,986		44,087		150,073
Interest expense		(793	)		(199	)		(992	)		—		—		—
Other income, net		1,581			647			2,228			3,416		905		4,321
Income before income taxes		129,571			53,993			183,564			109,402		44,992		154,394
Income tax expense		28,648			12,014			40,662			23,858		9,884		33,742
Net income	$	100,923		$	41,979		$	142,902		$	85,544	$	35,108	$	120,652

NON-GAAP PERFORMANCE MEASURES AND DEFINITIONS

In addition to amounts presented in accordance with GAAP, we also present certain supplemental non-GAAP performance measurements. These measurements are not to be considered more relevant or accurate than the measurements presented in accordance with GAAP. In compliance with the requirements of the SEC, our non-GAAP measurements are reconciled to net income, the most directly comparable GAAP performance measure. For all non-GAAP measurements, neither the SEC nor any other regulatory body has passed judgment on these non-GAAP measurements.

EBITDA, Adjusted EBITDA, and Free Cash Flow

EBITDA is a non-GAAP financial measurement of earnings before interest expense, taxes, depreciation, depletion and amortization. The purpose of presenting EBITDA is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis.

The purpose of presenting Adjusted EBITDA is to highlight earnings without non-cash activity such as share-based compensation and other non-recurring or unusual items, if applicable. Additionally, Adjusted EBITDA is a metric used by the compensation committee of our Board to evaluate the Company’s performance in determining the short-term and long-term incentive compensation of our executive officers on an annual basis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation, less land sale with financing arrangement and pension curtailment and settlement gain, as applicable to the periods presented.

The purpose of presenting free cash flow is to provide investors a metric to measure the funds available for investing in future acquisitions and returning capital to our stockholders through dividends and share repurchases after current income tax expense and purchases of fixed assets. Additionally, free cash flow is a metric used by the compensation committee of our Board to evaluate the Company’s performance in determining the short-term and long-term incentive compensation of our executive officers. To calculate free cash flow, net income is adjusted by adding back income tax expense, depreciation, depletion and amortization and employee share-based compensation, less the cash outflows of current income tax expenses, land sale with financing arrangement, purchases of fixed assets and pension curtailment and settlement gain, as applicable to the periods presented.

We have presented EBITDA, Adjusted EBITDA, and free cash flow because we believe that these metrics are useful supplements to net income in analyzing the Company’s operating performance, ability to fund future acquisitions, ability to return capital to our stockholders and explaining how our executive officers are compensated. Our definitions of EBITDA, Adjusted EBITDA, and free cash flow may differ from computations of similarly titled measures of other companies.

The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025 (in thousands):

	Three Months Ended
	March 31, 2026			December 31, 2025		March 31, 2025
Net income	$	142,902		$	123,346	$	120,652
Add:
Interest expense		992			690		—
Income tax expense		40,662			28,419		33,742
Depreciation, depletion and amortization		14,043			21,930		11,941
EBITDA		198,599			174,385		166,335
Add (deduct):
Employee share-based compensation		3,742			3,756		3,083
Land sale with financing arrangement		(20,944	)		—		—
Adjusted EBITDA	$	181,397		$	178,141	$	169,418

The following table presents a reconciliation of net income to free cash flow for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025 (in thousands):

	Three Months Ended
	March 31, 2026			December 31, 2025			March 31, 2025
Net income	$	142,902		$	123,346		$	120,652
Add (deduct):
Income tax expense		40,662			28,419			33,742
Depreciation, depletion and amortization		14,043			21,930			11,941
Employee share-based compensation		3,742			3,756			3,083
Current income tax expense		(37,078	)		(26,968	)		(32,954	)
Land sale with financing arrangement		(20,944	)		—			—
Purchases of fixed assets		(7,348	)		(28,653	)		(8,966	)
Decrease (increase) in accounts payable related to purchases of fixed assets		430			(2,973	)		(942	)
Free cash flow	$	136,409		$	118,857		$	126,556