Texas Pacific Land Corporation (TPL) reported record financial results for the third quarter of 2026, with consolidated revenue of $273.4 million and diluted EPS of $2.42, comfortably beating analyst estimates. Performance was underpinned by all-time highs in both oil and gas royalty production and produced water royalty volumes, alongside a significant sequential recovery in natural gas price realizations.
Key Highlights
- Oil and gas royalty production reached a record 42.3 thousand Boe per day, a 6.5% sequential increase over the previous record set in the second quarter of 2026.
- Produced water royalty volumes hit a record 5.5 million barrels per day, driving $41.4 million in revenue as operators expanded Permian midstream infrastructure.
- Natural gas realizations improved drastically to $2.40 per Mcf from just $0.40 per Mcf in the prior quarter, contributing to a $21.7 million sequential increase in royalty revenue.
- The company announced a land and water resource agreement with Chevron to support "Project Kilby," a large-scale power facility for a customer data center in Reeves County.