$TPL · Texas Pacific Land Corp
Texas Pacific Land filed its Q3 FY2026 10-Q. Total revenues were $273.4M, up 34.6% from $203.1M a year earlier, driven by oil and gas royalties of $167.3M (up from $108.7M) and easements/other surface income of $36.2M (up from $16.7M). Net income was $167.4M versus $121.2M, with diluted EPS of $2.42 versus $1.76. Operating margin was 76.0%. Water sales declined to $28.4M from $44.6M.
- Oil and gas royalties rose 54% YoY to $167.3M in Q3.
- Water sales fell 36% YoY to $28.4M.
- Nine-month net income was $464.2M versus $358.0M.
- Cash and equivalents grew to $369.6M from $144.8M at year-end.
- Quarterly dividend raised to $0.60 per share from $0.54.
Regular session closed down 13.36% to $287.65, but extended-hours trading shows a +3.94% rebound to $299.00, suggesting the earnings release was received positively after the close.
A 34.6% revenue jump and 38% net income growth show TPL's royalty model compounding strongly despite a weak water segment.
TPL's royalty-heavy model benefits directly from Permian Basin activity, with oil and gas royalties up 54% YoY even as its water services segment softened.
Water sales declined 36% YoY, and interest expense of $981K appeared in Q3 versus none a year earlier, reflecting new debt.