Texas Pacific Land Corporation Reports 12.5% Revenue Growth in Q1 2025

Texas Pacific Land Corporation (TPL) reported its financial results for the first quarter of 2025, revealing a total revenue of $196.0 million, an increase of 12.5% from $174.1 million in the same period of 2024. The company's net income rose to $120.7 million, compared to $114.4 million a year earlier, resulting in a basic earnings per share of $5.25, up from $4.97. The increase in revenue was primarily driven by higher oil and gas royalty income, which reached $111.2 million, a significant increase from $92.1 million in the prior year, reflecting a rise in production volumes.

In terms of operational metrics, TPL's share of oil and gas production increased to 31.1 thousand barrels of oil equivalent (Boe) per day, compared to 24.8 thousand Boe per day in the first quarter of 2024. The average realized price for oil decreased slightly to $71.05 per barrel, down from $76.77 per barrel a year ago. The company also reported a 14% increase in water sales volumes, contributing to water sales revenue of $38.8 million, up from $37.1 million in the previous year. However, easements and other surface-related income fell to $15.3 million from $18.1 million, primarily due to a decrease in pipeline easements.

The company’s total assets increased to $1.35 billion as of March 31, 2025, compared to $1.25 billion at the end of 2024. Cash and cash equivalents also rose to $460.4 million from $369.8 million, reflecting strong cash flow from operations, which amounted to $156.7 million for the quarter, up from $147.2 million in the prior year. TPL's total liabilities increased to $147.0 million, primarily due to higher income taxes payable and unearned revenue.

Strategically, TPL completed the acquisition of oil and gas royalty interests for approximately $3.5 million during the quarter, marking its first acquisition of such interests in 2025. The company continues to focus on expanding its water services and operations, with significant investments in water sourcing assets. TPL has also initiated the construction of a facility aimed at recycling produced water into fresh water, with an expected capacity of 10,000 barrels per day, slated for completion later in 2025.

Looking ahead, TPL remains optimistic about its operational performance, despite fluctuations in oil and gas prices influenced by market conditions. The company plans to maintain a strong liquidity position and continue returning capital to shareholders through dividends and potential share repurchases. The board has declared a quarterly cash dividend of $1.60 per share, payable in June 2025, reflecting the company's commitment to returning value to its shareholders while navigating the evolving market landscape.