Texas Pacific Land Corp (NYSE:TPL)

Q2 2026 Texas Pacific Land Corp (Dover) Earnings Call Transcript

Aug 6, 2026 / 02:30 PM GMT

Release Date Price: $355.64 (-6.87%)

Transcript 10-Q8-K

Key Points

Positve

Texas Pacific Land Corp (TPL) delivered record quarterly total revenue, net income, and free cash flow, with consolidated revenues reaching approximately $246 million, up 31% year over year.
Oil and gas royalty production hit a record average of approximately 39,700 barrels of oil equivalent per day, up 20% year over year, and the company's unhedged position allowed it to fully benefit from strong oil prices.
Produced water royalty volumes reached a record 4.9 million barrels per day, up 15% year over year, driven by strong demand for both in-basin and out-of-basin pore space.
The company is making significant strategic progress in data center and power generation efforts, including the multi-gigawatt Project Gilby with Chevron and a new 10,000-acre land acquisition in Shackelford and Jones County, Texas, expanding its footprint beyond the Permian.
Construction of the Orla Phase 2B desalination facility is complete and commissioning has commenced, with strong interest from hyperscalers and AI labs for potential co-location and beneficial reuse of produced water streams.
Management is in advanced conversations with multiple hyperscalers, AI labs, and power generators on 25 gigawatts of projects, with expectations of announcing at least one or more major definitive agreements in the near term.

Negative

Water sales volumes declined 19% sequentially in the second quarter due to weak in-basin natural gas prices, as operators shifted some development activity away from the Delaware Basin.
The oil cut in production mix dipped to the mid-30% range, lower than the expected normalized long-term level of 40% plus, partly due to accounting noise from new acquisitions and heavy development in gas-rich areas.
The company has paused share buybacks for several quarters, choosing to build cash to deploy toward other opportunities like land acquisitions, which may not be the most favorable use of capital if the stock is undervalued.
The Shackelford and Jones County land acquisition represents a step-out beyond the company's legacy footprint, introducing execution risk in a new region and requiring new expertise in data center development.
The desalination facility is still in early commissioning stages, and the company has yet to demonstrate that produced water desalination can work at scale, with commercial viability and revenue generation still unproven.
The company's capital expenditure guidance of $65 million to $75 million for the year includes spending on co-location cooling and waste heat capture investigations, which are exploratory and may not yield immediate returns.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

TPL.N - Texas Pacific Land Corporation
Q2 2026 Texas Pacific Land Corp (Dover) Earnings Call
Aug 06, 2026 / 02:30PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings and welcome to the Texas Pacific Land Corporation second quarter 2026 earnings conference call.

At this time, all participants in listen-only mode.

A question-and-answer session will follow the formal presentation.

If anyone should require operator assistance, please press 0 on your telephone keypad, as a reminder, this conference is being recorded.

It is now my pleasure to introduce John Amini, Vice President of Finance and Investor Relations.

Please go ahead.

Thank you for joining us today for Texas Pacific Lane Corporation, second quarter 2026 earnings conference call yesterday afternoon, the company released its financial results and filed its

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