The longtime energy industry landlord could benefit handsomely from entering new businesses.On a trading day where the bears largely had their way, Texas Pacific Land Corporation (TPL +0.81%) stock landed in the black on Monday. Its share price closed 0.6% higher, thanks in no small part to an analyst price target increase, which looked impressive next to the S&P 500 index's more than 1% decline.The new "black gold"Texas Pacific, which is basically a landlord with vast holdings in the oil-rich Permian Basin ...

The share price of Texas Pacific Land Corporation (NYSE:TPL) surged by 15.63% between February 13 and February 20, 2026, putting it among the Energy Stocks that Gained the Most This Week. Texas Pacific Land (TPL) Hits New Records in Q4 2025 Texas Pacific Land Corporation (NYSE:TPL) owns and manages about 868,000 acres in the Permian Basin. The company generates revenues along the entire value chain of oil and gas development, including royalties, water resources, and surface leases, easements, and materi ...

Core Viewpoint - Texas Pacific Land Corporation (TPL) presents a compelling investment opportunity in the oil and gas sector, despite its seemingly uninteresting nature as a landlord for these companies [1]. Company Insights - TPL operates in the energy and minerals sectors, which are characterized by significant growth potential and active market dynamics [1]. - The company has garnered attention due to its unique position and the ongoing developments within the oil and gas industry [1]. Analyst Background - The analysis is conducted by a seasoned professional with over a decade of experience in financial markets, particularly in hedge funds, focusing on rigorous research standards [1]. - The analyst has a strong interest in technology sectors, specifically SaaS and cloud businesses, but has recently expanded focus to energy and minerals, indicating a broad understanding of market trends [1].

Core Insights - Texas Pacific Land Corporation (TPL) is a significant landowner in Texas, focusing on land management, oil and gas royalties, and water services [1][6] - The company has organized a shareholder visit to its office and water field in Midland to enhance understanding of its operations and water management strategies [2][6] - HORIZON KINETICS ASSET MANAGEMENT LLC, a major shareholder with a 10 percent stake, recently purchased additional shares, indicating strong investor confidence in TPL [3][6] - TPL's stock reached a high of $518.79, reflecting positive market sentiment and optimism regarding the company's performance [4] - The shareholder visit aims to build transparency and trust, strengthening relationships with investors and providing insights into TPL's operations [5][6]

Core Insights - Texas Pacific Land Corporation (TPL) is positioned to become a vital part of the value chain for large-scale data center developments by aggregating services related to power, water, and land sourcing [1] Group 1: Company Overview - TPL is focusing on integrating essential services for data center construction, which may enhance its market relevance and operational efficiency [1] Group 2: Investment Implications - The recent equity investment in TPL indicates a strategic move to capitalize on the growing demand for data centers, potentially leading to increased revenue streams [1]

Texas Pacific Land (NYSE:TPL) Q4 2025 Earnings call February 19, 2026 10:30 AM ET Company ParticipantsChris Steddum - CFODerrick Whitfield - Managing Director and Head of Energy Equity ResearchOliver Huang - Director of Research DepartmentRobert Crain - EVP of Texas Pacific Water ResourcesShawn Amini - VP of Finance and Investor RelationsTyler Glover - CEOConference Call ParticipantsTim Rezvan - Managing Director and Equity Research AnalystOperatorGreetings, and welcome to the Texas Pacific Land Corporation ...

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 were approximately $212 million, with adjusted EBITDA of $178 million and an adjusted EBITDA margin of 84% [15] - Free cash flow for Q4 was $119 million, and for the full year 2025, record free cash flow reached approximately $498 million, an 8% year-over-year increase [15][16] - Full year 2025 oil and gas royalty production increased by 29% year-over-year, while water sales volumes increased by 4% and produced water royalty volumes increased by 25% [15][16] Business Line Data and Key Metrics Changes - Oil and gas royalty production grew 23% year-over-year in Q4, while water sales volumes exceeded 1 million barrels per day for the first time, growing 36% year-over-year [4] - Produced water royalty volumes grew 22% year-over-year [4] - The company achieved a 3-year compounded annual growth rate of 17% for oil and gas royalty production, 18% for water sales volumes, and 30% for produced water royalty volumes [5] Market Data and Key Metrics Changes - The Permian Basin experienced a decline in rig activity, with the horizontal rig count down approximately 26% [17] - Despite lower rig counts, production growth was sustained through a drawdown of drilled but uncompleted wells (DUCs), with an estimated 600 DUCs drawn down in 2025 [17][18] - The average lateral lengths of completed wells increased by 8% compared to the previous year, with new permitted wells averaging 35% longer than in 2024 [19] Company Strategy and Development Direction - The company is focused on leveraging its strengths in water and land access to build large-scale energy campuses, aiming for multiple multi-gig energy campuses [27][28] - TPL is investing in next-generation opportunities, including data centers and produced water desalination, with a strategic investment in Bolt Data & Energy [6][7] - The company plans to invest approximately $20 million in waste heat capture and data center cooling at its desalination facility [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth pipeline for 2026, focusing on maximizing long-term intrinsic value per share despite a weak oil price environment [12][11] - The company maintains a debt-free balance sheet and a $500 million undrawn credit facility, providing flexibility to invest opportunistically [12][21] - Management highlighted the importance of adapting to evolving market conditions and maintaining a resilient business model [22] Other Important Information - The company announced a regular dividend of $0.60 per share, representing a 12.5% increase from the previous quarter [16] - A shareholder event is scheduled for May 18th in Midland, Texas, to provide updates on company operations [13] Q&A Session Summary Question: Thoughts on power and data center development opportunities - Management noted that the opportunity set for power and data center development has evolved significantly, with ongoing commercial negotiations and promising projects [26][27] Question: Potential value from the Bolt Energy partnership - Management indicated that the water usage numbers for power generation and data centers could be substantial, depending on facility design [30][31] Question: Strength in traditional water business amid market contraction - Management attributed the strength in produced water volumes to legacy contracts and strategic implementation over the past few years [34][35] Question: Updates on desalination process efficiencies - Management confirmed that the goal is to reduce energy consumption in desalination, with waste heat capture being a key focus [45][46] Question: Exposure to rare earth exploration in Hudspeth County - Management acknowledged ongoing exploration projects in Hudspeth County, with promising early findings [48][49]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 were approximately $212 million, with an adjusted EBITDA of $178 million and an adjusted EBITDA margin of 84% [14] - Free cash flow for Q4 was $119 million, contributing to a record free cash flow of approximately $498 million for the full year 2025, representing an 8% year-over-year increase [14][15] - Full year 2025 oil and gas royalty production increased by 29% year-over-year, while water sales daily volumes increased by 4% and produced water royalty daily volumes increased by 25% [15] Business Line Data and Key Metrics Changes - Oil and gas royalty production grew 23% year-over-year in Q4 2025, while water sales volumes exceeded 1 million barrels per day for the first time, growing 36% year-over-year [4] - Produced water royalty volumes grew 22% year-over-year [4] - The company achieved a 3-year compounded annual growth rate of 17% for oil and gas royalty production, 18% for water sales volumes, and 30% for produced water royalty volumes [5] Market Data and Key Metrics Changes - The Permian Basin experienced a decline in rig activity, with the horizontal rig count down approximately 26% [17] - Despite lower rig counts, production growth was sustained through a drawdown of drilled but uncompleted wells (DUCs), with an estimated 600 DUCs drawn down in 2025 [17][18] - The average lateral lengths of wells completed on TPL royalty acreage increased by 8% compared to the previous year, with new permitted wells averaging 35% longer than in 2024 [19] Company Strategy and Development Direction - The company is focused on leveraging its strengths in land, water, and energy to build large-scale data center and power generation solutions, particularly through its partnership with Bolt Data & Energy [6][8] - TPL aims to develop multiple multi-gig energy campuses, emphasizing the importance of scale in its operations [27] - The company is also investing in desalination projects to provide sustainable solutions for produced water management, with a facility in Orla, Texas nearing completion [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth pipeline for 2026, highlighting the ability to drive growth and extract value even in a weak oil price environment [11] - The company maintains a debt-free balance sheet and a $500 million undrawn credit facility, providing flexibility to invest opportunistically [12] - Management anticipates capital expenditures of approximately $65 million to $75 million for 2026, with a focus on water sales business improvements and desalination facility enhancements [20] Other Important Information - The company announced a regular dividend of $0.60 per share, representing a 12.5% increase from the prior quarter [16] - TPL is actively exploring opportunities in rare earths in Hudspeth County, with promising early-stage findings [47] Q&A Session Summary Question: Thoughts on power and data center development opportunities - Management believes the opportunity set for power and data center development has evolved significantly, with ongoing commercial negotiations and several projects in the pipeline [26][28] Question: Updates on the Bolt Energy partnership - Management indicated that Bolt aims to build a 10-gigawatt data center campus, with potential water revenue for TPL being substantial [29][30] Question: Current outlook for water business amidst broader activity contraction - Management attributed the strength in produced water volumes to legacy contracts and strategic implementation over the past few years, allowing for market capture despite activity level fluctuations [34][36] Question: Desalination process efficiencies and power intensity - Management clarified that the goal is to reduce energy consumption in desalination, with waste heat capture being a key focus to lower operational costs [44][45] Question: Exposure to rare earth exploration in Hudspeth County - Management confirmed ongoing exploration projects in Hudspeth County, with promising early-stage findings [47]

Texas Pacific Land Corporation NYSE: TPL Investor Presentation – February 2026 Disclaimers This presentation has been designed to provide general information about Texas Pacific Land Corporation and its subsidiaries ("TPL" or the "Company"). Any information contained or referenced herein is suitable only as an introduction to the Company. The recipient is strongly encouraged to refer to and supplement this presentation with information the Company has filed with the Securities and Exchange Commission ("SEC" ...

Land and Resource Management - Texas Pacific Land Corporation owns approximately 882,000 surface acres of land and approximately 224,000 net royalty acres, primarily concentrated in the Permian Basin[12][23]. - Revenue from the Land and Resource Management segment for 2025 was $490.7 million, representing 62% of consolidated revenue, with oil and gas royalties contributing $411.7 million, or 52% of total revenue[28]. - Oil production volumes increased to 4,936 MBbls in 2025, up from 4,118 MBbls in 2024, while natural gas production rose to 23,359 MMcf from 17,074 MMcf in the same period[29]. - The company completed several acquisitions in 2025, including 17,306 net royalty acres for $450.7 million and 8,147 acres of land for $31.4 million[20]. - The realized price for oil in 2025 was $64.69 per barrel, down from $75.80 in 2024, while natural gas realized prices increased to $1.73 per Mcf from $1.17[29]. - The company has identified 5.6 net well permits and 9.8 net drilled but uncompleted (DUC) wells as potential candidates for further development[31]. - A three-for-one stock split of common stock was executed on December 22, 2025, with trading adjusted accordingly from December 23, 2025[18]. - Approximately 40% of 2025 revenue was derived from three investment-grade rated customers, indicating a high concentration of business with reliable operators in the Permian Basin[43]. - The company has interests in over 11,346 gross productive wells, consisting of 8,959 oil wells and 2,387 natural gas wells, as of December 31, 2025[133]. - The total Assigned Royalty Interests and acquired royalty interests amount to 224,057 NRA as of December 31, 2025, with 5,308 from Assigned Royalty Interests and 185,369 from acquired interests[125]. Water Services and Operations - Water Services and Operations segment revenue for 2025 was $307.464 million, representing 38% of consolidated revenue, up from $265.030 million in 2024 and $199.490 million in 2023[36]. - Water sales in 2025 reached $169.701 million, a 12.6% increase from $150.724 million in 2024, and produced water royalties increased to $124.218 million from $104.123 million[37]. - The total volume of water sales in 2025 was 278,564 MBbls, while produced water royalties amounted to 1,566,588 MBbls, reflecting a significant increase from previous years[37]. - The company has invested $45.5 million in developing an energy-efficient desalination and treatment process for produced water, with $33.6 million spent in 2025 alone[39]. - A new desalination test facility with an initial capacity of 10,000 barrels per day is under development, expected to be completed by the end of the first half of 2026[39]. - The company has spent $24.9 million in 2025 to enhance water sourcing assets, reinforcing its competitive position in the market[40]. - The company has maintained zero spills of produced water for three consecutive years (2023-2025), highlighting its commitment to environmental safety[51]. Financial Performance - Total revenues for the year ended December 31, 2025, were $798.2 million, an increase of 13.1% compared to $705.8 million for 2024[175]. - Net cash provided by operating activities was $545.9 million for the year ended December 31, 2025, compared to $490.7 million for 2024, reflecting an increase of 11.4%[168]. - Oil and gas royalty revenue increased by 10.3% to $411.7 million for the year ended December 31, 2025, from $373.3 million in 2024[179]. - Cash flows used in investing activities were $595.8 million for the year ended December 31, 2025, compared to $471.7 million for 2024, representing a 26.3% increase[170]. - Operating income for the year ended December 31, 2025, was $592.2 million, compared to $539.1 million for 2024, an increase of 9.8%[175]. - The company paid total dividends of $147.8 million for the year ended December 31, 2025, compared to $347.3 million in 2024[173]. - Free cash flow for the year ended December 31, 2025, was $498.3 million, an increase from $461.1 million in 2024[201]. - Adjusted EBITDA for the year ended December 31, 2025, was $687.4 million, compared to $610.7 million in 2024[201]. Environmental and Regulatory Considerations - The company continues to explore opportunities in renewable energy and environmental sustainability, leveraging its extensive land and resource assets[15]. - The company’s ESG strategy emphasizes sustainability and responsible resource management, with ongoing initiatives to reduce emissions and enhance operational efficiency[48]. - The business is subject to government regulations that may increase costs and impact operations, particularly in response to environmental concerns[70]. - Negative public opinion regarding water treatment operations could lead to operational delays and increased regulatory scrutiny[73]. - The company’s revenues are influenced by natural and environmental conditions, which can disrupt operations and financial results[101]. Cybersecurity and Risk Management - The company has invested significantly in cybersecurity measures, aligning with the NIST Cybersecurity framework, to mitigate risks[106]. - The company has established a risk management framework that includes annual risk assessments and collaboration with third-party security experts[107]. - The company employs a multi-tiered approach to manage cybersecurity risks, involving a Director of Information Technology and a third-party Chief Information Security Officer (CISO)[119]. - The Audit Committee receives quarterly updates on IT and cybersecurity, including key risk indicators and management's steps to control cybersecurity risk exposure[118]. - Cyber incidents targeting the company's systems or those of its partners may adversely impact operations and reputation[83]. Market and Competitive Landscape - Demand for TPWR's products and services is heavily reliant on customer expenditures for oil and gas exploration, which can fluctuate based on oil and gas prices[65]. - The company faces risks in a rapidly evolving market, competing with numerous local companies and larger diversified competitors[66]. - The company’s business could be negatively affected by major industry trends such as decarbonization and shifts in energy demand[102]. - The average monthly horizontal permits in the Permian Basin decreased to 581 in 2025 from 654 in 2024, while average monthly horizontal wells drilled fell to 457 from 504[153]. - The average weekly horizontal rig count in the Permian Basin decreased to 257 in 2025 from 296 in 2024[153]. Capital Structure and Investments - The company entered into a revolving credit facility of up to $500 million, with the ability to request increases of up to $250 million, maturing on October 23, 2029[17]. - The Credit Facility imposes covenants that may limit operational flexibility and requires maintaining a consolidated interest coverage ratio of at least 3.0 to 1.0[77]. - The company has a stock repurchase program approved for up to $250.0 million, with $8.4 million spent to repurchase 27,000 shares in 2025[88]. - The company made a minority investment of $50 million in Bolt to develop large-scale data center campuses, receiving equity interest and a right of first refusal for water supply[79]. - As of December 31, 2025, the company had cash and cash equivalents of $144.8 million, with a target cash balance of approximately $700 million[156].