What were the key takeaways from Texas Pacific Land’s earnings call?

What guidance did Texas Pacific Land's management provide for the next earnings period?

What is Texas Pacific Land's latest dividend and current dividend yield?

Did Texas Pacific Land beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Texas Pacific Land year over year?

What is the market's earnings forecast for Texas Pacific Land next quarter?

What is Texas Pacific Land's gross profit margin?

What does Texas Pacific Land do and what are its main business segments?

- **Record Q3 Performance**: $203M revenue, $174M EBITDA (85% margin), $123M free cash flow.
- **Major Acquisition**: $474M Midland Basin royalty deal adds 3,700 BOE/day with 80% liquids cut.
- **Water Business Growth**: Water sales up 74% QoQ, produced water royalties +16% YoY.
- **Strategic Moves**: $500M credit facility, 3-for-1 stock split, desalination project nearing commissioning.
- **Permian Dominance**: Permian supplied 100% of global oil growth since 2015; TPL poised to benefit from long-term demand trends.

**【Management Opening Remarks】**
- TPL reported record Q3 2025 revenue of $203 million, with adjusted EBITDA of $174 million (85% margin) and free cash flow of $123 million.
- Announced a 3-for-1 stock split to enhance liquidity and flexibility for growth opportunities.
- Secured a $500 million credit facility with attractive terms, maintaining a net cash balance sheet.

**【CEO Summary Section】**
- **Oil & Gas Royalties**: Q3 production reached 36,300 BOE/day (28% YoY growth), driven by 7% longer lateral wells and 18% contribution from acquired minerals/assets. Despite lower oil prices, royalty production increased 55% since Q3 2022.
- **Water Business**: 
  - Water sales hit $45 million (74% sequential growth), with produced water royalties at $32 million (16% YoY growth).
  - Acquired 8,100 surface acres for strategic SLEM and data center opportunities.
- **Acquisition Highlights**: 
  - $474 million purchase of 17,300 net royalty acres in Midland Basin, producing 3,700 BOE/day with 80% liquids cut.
  - 70% of acquired acreage overlaps existing TPL drilling units, enhancing operational synergies.
- **Strategic Positioning**: 
  - Permian's dominance in global oil supply growth (4.8 MMBbl/d since 2015) positions TPL to benefit from long-term demand trends.
  - Below-mid-cycle oil prices ($65 vs. 10-year average $78) create acquisition opportunities for high-quality, long-duration assets.

**【CFO Financial Commentary】**
- **Financial Performance**: 
  - GAAP net income of $420 million; Non-GAAP EPS of $1.08 exceeded expectations.
  - Free cash flow up 15% YoY, with 9% sequential growth in royalty production.
- **Balance Sheet**: 
  - $532 million cash on hand; no debt.
  - Credit facility remains undrawn, providing flexibility for countercyclical M&A.
- **Desalination Update**: 
  - 10,000 BOPD facility nearing commissioning; testing waste heat capture and colocation efficiencies.
  - Regulatory approvals for beneficial reuse pilots advancing.

**【Q&A Key Highlights】**
- **Water Sales Mix**: Recycled water占比 fluctuates based on operator demand, but brackish water infrastructure provides stability.
- **Desalination Commercialization**: Phase 2 testing focuses on waste heat integration and direct cooling applications.
- **M&A Activity**: Active pipeline of surface and mineral acquisitions, with focus on out-of-basin disposal and next-gen projects.
- **Power & Data Centers**: TPL's expansive West Texas footprint positions it as top contender for hyperscale facilities, with deals nearing closure.


Texas Pacific Land Corporation (TPL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TPL

TPL fundamentals

You can ask Aime