Texas Pacific Land Corporation

Second quarter 2026 consolidated revenues were approximately $246 million, up 4% sequentially and 31% year over year, and adjusted EBITDA was $216 million, up 19% sequentially and 30% year over year. Adjusted EBITDA margin was 88%, and free cash flow was $156 million, up 14% sequentially and 20% year over year. Management said oil and gas royalty production averaged approximately 39,700 BOE/day, produced water royalty volumes were 4.9 million barrels per day, and water sales volumes were 663,000 barrels per day. Full-year capex guidance was reaffirmed at $65 million to $75 million, with year-to-date capex at $29 million.

Tyler Glover said the quarter delivered exceptional results and that TPL is making progress on key growth initiatives across its core royalty business, water, and new power/compute opportunities. He emphasized that West Texas is becoming a global hub for power and compute, pointed to Project Kilby and the 10,000-acre acquisition in Shackelford and Jones Counties, and said the company is pursuing multiple hyperscalers, AI labs and power generators. His tone was highly constructive and confident, repeatedly stressing that opportunities are growing and that TPL wants to capture more of the value chain while staying capital light.

Chris Steddum highlighted the hard financial results: $246 million of revenue, $216 million of adjusted EBITDA, an 88% adjusted EBITDA margin, and $156 million of free cash flow. He also noted 5.6 net permitted wells, 9.5 net DUCs, and 3.4 net completed but not producing wells, for 18.4 net line-of-sight wells. On capital allocation, he said the company is in a “cash build mode” for now because there is a strong opportunity set, but buybacks remain on the table if they become the best use of capital; he reaffirmed full-year capex guidance of $65 million to $75 million.

Analysts focused on the new surface acquisition, the pace of monetization from power/compute projects, the durability of produced water royalty economics, the reasons oil cuts dipped, and the absence of recent buybacks. Management said the Shackelford/Jones land broadens the value proposition beyond the legacy footprint and that the company is in advanced conversations across 25 gigawatts of projects, with a near-term definitive agreement expected. On produced water royalties, management said contractual escalators support steady-to-increasing monetization over time, though transport royalties are typically lower than pure pore space injections; on oil mix, they said the lower oil percentage was likely temporary and should trend back above 40% long term.