TEXAS PACIFIC LAND CORPORATION ANNOUNCES THIRD QUARTER RESULTS
Earnings Call to be Held Thursday, November 5, 2026 at 9:30 am CT DALLAS, TX (November 4, 2026) – Texas Pacific Land Corporation (NYSE: TPL) (the “Company,” “TPL,” “we,” “our,” or “us”), one of the largest land and royalty owners in the State of Texas with surface and royalty ownership that provides revenue opportunities through the support of energy production and related industries, today announced its financial and operating results for the third quarter of 2026.
“Our third quarter results were the strongest in TPL’s history with new records set across our business,” said Tyler Glover, Chief Executive Officer of the Company. “TPL again generated record revenue, net income, and free cash flow. Our royalty acreage benefited from robust development activity, elevated oil prices, and improved gas realizations, driving record oil and gas royalty revenue. Pipeline easement revenue was strong as operators expanded development of midstream infrastructure. The continued trend of growing Permian produced water supported record produced water royalty volumes and revenues. Finally, our efforts towards data centers, power generation, and produced water desalination and beneficial reuse continue to progress, and we are steadfastly working to advance those into meaningful commercial outcomes.”
◦ Oil and gas royalty revenue of $167.3 million and oil and gas royalty production of 42.3 thousand barrels of oil equivalent (“Boe”) per day
◦ Produced water royalty revenue of $41.4 million and produced water royalty volumes of 5.5 million barrels (“bbl”) per day
• As of September 30, 2026, TPL’s royalty acreage had an estimated 5.7 net well permits, 8.6 net drilled but uncompleted wells (“DUCs”), and 2.5 net completed but not producing wells (“CUPs”), totaling 16.8 net wells. (2) TPL had 132.5 net producing wells as of September 30, 2026, and net producing wells added during the quarter had an average lateral length of approximately 10,623 feet.
• Oil and gas royalty production of 39.7 thousand Boe per day 1 • Water sales revenue of $115.0 million
• $122.7 million of aggregate land acquisitions in Shackelford and Jones Counties, Texas, in connection with our data center and power generation initiatives, and in Winkler and Reeves Counties, Texas.
• Completed construction and commenced commissioning of the Phase 2B produced water desalination facility in Orla, Texas with anticipated capacity of 10,000 inlet barrels per day.
• Announced an agreement with Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX) (“Chevron”) to provide land and brackish water resources for Chevron’s recently announced development known as Project Kilby, involving a large-scale power generation facility Chevron is developing to support a customer data center in Reeves County, Texas.
• On May 5, 2026, TPL’s board of directors (the “Board”) appointed Peter Doyle to the Board. Mr. Doyle is a co-founder and the Co-Chief Executive Officer of Horizon Kinetics, which, through various owned subsidiaries, is TPL’s largest stockholder.
(1) Reconciliations of non-GAAP performance measures are provided in the tables below.
The Company reported net income of $167.4 million for the third quarter of 2026 compared to net income of $153.9 million for the second quarter of 2026.
Total revenues for the third quarter of 2026 were $273.4 million compared to $246.1 million for the second quarter of 2026. The increase in total revenues was primarily due to a $21.7 million increase in oil and gas royalty revenue, a $12.5 million increase in easements and other surface-related income, and a $4.3 million increase in produced water royalties, partially offset by an $11.3 million decrease in water sales compared to the second quarter of 2026. For oil and gas royalty revenue, the Company’s average realized price was $44.97 per Boe in the third quarter of 2026 compared to $42.17 per Boe in the second quarter of 2026, and the Company’s share of production was 42.3 thousand Boe per day for the third quarter of 2026 compared to 39.7 thousand Boe per day for the second quarter of 2026. Water sales decreased in the third quarter of 2026 compared to the second quarter of 2026 due to a decrease in average realized pricing, partially offset by an increase in water sales volumes. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.
Total operating expenses were $65.6 million for the third quarter of 2026 compared to $54.2 million for the second quarter of 2026. The increase in operating expenses was principally related to a $6.2 million increase in depreciation, depletion and amortization expense, a $2.6 million increase in general and administrative expenses, and a $2.2 million increase in water service-related expenses during the third quarter of 2026 compared to the second quarter of 2026. 2 Financial Results for the Nine Months Ended September 30, 2026 - Year Over Year
The Company reported net income of $464.2 million for the nine months ended September 30, 2026 compared to net income of $358.0 million for the nine months ended September 30, 2025.
Total revenues for the nine months ended September 30, 2026 were $756.3 million compared to $586.6 million for the nine months ended September 30, 2025. The increase in total revenues was primarily due to a $116.1 million increase in oil and gas royalty revenue, a $21.3 million increase in produced water royalties, a $20.2 million increase in land sales, a $6.1 million increase in water sales, and a $6.0 million increase in easements and other surface-related income during the nine months ended September 30, 2026 compared to the same period of 2025. The Company’s share of oil and gas production was 39.7 thousand Boe per day for the nine months ended September 30, 2026 compared to 33.6 thousand Boe per day for the same period of 2025, and the Company’s average realized price was $41.60 per Boe for the nine months ended September 30, 2026 compared to $36.01 per Boe for the same period of 2025. Produced water royalties increased due to increased produced water volumes, and water sales increased primarily due to increased water sales volumes. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.
Total operating expenses were $174.3 million for the nine months ended September 30, 2026 compared to $143.7 million for the same period of 2025. The increase in operating expenses was principally related to a $12.9 million increase in depreciation, depletion and amortization, a $9.9 million increase in general and administrative expenses, a $4.7 million increase in salaries and related employee expenses, and a $3.7 million increase in water service-related expenses during the nine months ended September 30, 2026 compared to the same period of 2025.
On November 2, 2026, the Board declared a quarterly cash dividend of $0.60 per share, payable on December 15, 2026 to stockholders of record at the close of business on December 1, 2026.
The Company will hold a conference call on Thursday, November 5, 2026 at 9:30 a.m. Central Time to discuss third quarter results. A live webcast of the conference call will be available on the Investors section of the Company’s website at www.TexasPacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.
The conference call can also be accessed by dialing 1-877-407-4018 or 1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13759100. The telephone replay will be available starting shortly after the call through November 19, 2026.
Texas Pacific Land Corporation is one of the largest land and royalty owners in the State of Texas, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its land and royalty ownership provides revenue opportunities throughout the life cycle of a well. These revenue opportunities include providing pipeline, utility, wellbore, and commercial easements/leases; monetizing caliche and materials resources; supplying source and recycled/treated produced water for well completions; allowing access to subsurface pore space; granting produced water crossing rights; and monetizing oil and gas royalty and mineral interests.
Certain statements in this news release are, and certain statements made on the related conference call may be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on TPL’s beliefs, as well as assumptions made by, and information currently available to, TPL, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,” “expect,” and similar expressions or the negative of such terms identify forward-looking statements. Forward-looking statements include, but are not limited to, references to strategies, plans, objectives, expectations, intentions, assumptions, future operations, and prospects; statements regarding anticipated benefits of recent acquisitions or the Permian Basin’s future drilling inventory and energy resources; and other statements 3 that are not historical facts. You should not place undue reliance on forward- looking statements. Although TPL believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, TPL may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may differ materially from those set forth in the forward-looking statements due to a number of factors, including, but not limited to: the initiation or outcome of potential litigation; any changes in general economic and/or industry specific conditions; and the other risks discussed in TPL’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You can access TPL’s filings with the Securities and Exchange Commission (“SEC”) through the SEC’s website at www.sec.gov and TPL strongly encourages you to do so. These forward-looking statements are based only on information available to TPL and speak only as of the date hereof. Except as required by applicable law, TPL undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.
The table below provides financial and operational data for water sales and produced water royalties:
In addition to amounts presented in accordance with GAAP, we also present certain supplemental non-GAAP performance measurements. These measurements are not to be considered more relevant or accurate than the measurements presented in accordance with GAAP. In compliance with the requirements of the SEC, our non-GAAP measurements are reconciled to net income, the most directly comparable GAAP performance measure. For all non-GAAP measurements, neither the SEC nor any other regulatory body has passed judgment on these non-GAAP measurements.
EBITDA is a non-GAAP financial measurement of earnings before interest expense, taxes, depreciation, depletion and amortization. The purpose of presenting EBITDA is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis.
The purpose of presenting Adjusted EBITDA is to highlight earnings without non- cash activity such as share-based compensation and other non-recurring or unusual items, if applicable. Additionally, Adjusted EBITDA is a metric used by the compensation committee of our Board to evaluate the Company’s performance in determining the short-term and long-term incentive compensation of our executive officers on an annual basis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation, less land sale with financing arrangement and pension curtailment and settlement gain, as applicable to the periods presented.
The purpose of presenting free cash flow is to provide investors a metric to measure the funds available for investing in future acquisitions and returning capital to our stockholders through dividends and share repurchases after current income tax expense and purchases of fixed assets. Additionally, free cash flow is a metric used by the compensation committee of our Board to evaluate the Company’s performance in determining the short-term and long-term incentive compensation of our executive officers. To calculate free cash flow, net income is adjusted by adding back income tax expense, depreciation, depletion and amortization and employee share-based compensation, less current income tax expenses, land sale with financing arrangement, purchases of fixed assets and pension curtailment and settlement gain, as applicable to the periods presented.
We have presented EBITDA, Adjusted EBITDA, and free cash flow because we believe that these metrics are useful supplements to net income in analyzing the Company’s operating performance, ability to fund future acquisitions, ability to return capital to our stockholders and explaining how our executive officers are compensated. Our definitions of EBITDA, Adjusted EBITDA, and free cash flow may differ from computations of similarly titled measures of other companies.
The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended September 30, 2026 and June 30, 2026 and for the nine months ended September 30, 2026 and September 30, 2025 (in thousands):
10 The following table presents a reconciliation of net income to free cash flow for the three months ended September 30, 2026 and June 30, 2026 and for the nine months ended September 30, 2026 and September 30, 2025 (in thousands):
Full text with the tables
Exhibit 99.1
TEXAS PACIFIC LAND CORPORATION ANNOUNCES THIRD QUARTER RESULTS
–
Achieved Record Consolidated Revenue, Net Income and Free Cash Flow (1)
–
Achieved Record Quarterly Oil and Gas Royalty Revenue and Production
–
Earnings Call to be Held Thursday, November 5, 2026 at 9:30 am CT
DALLAS, TX (November 4, 2026) – Texas Pacific Land Corporation (NYSE: TPL) (the
“Company,” “TPL,” “we,” “our,” or “us”), one of the largest land and royalty
owners in the State of Texas with surface and royalty ownership that provides
revenue opportunities through the support of energy production and related
industries, today announced its financial and operating results for the third
quarter of 2026.
“Our third quarter results were the strongest in TPL’s history with new records
set across our business,” said Tyler Glover, Chief Executive Officer of the
Company. “TPL again generated record revenue, net income, and free cash flow.
Our royalty acreage benefited from robust development activity, elevated oil
prices, and improved gas realizations, driving record oil and gas royalty
revenue. Pipeline easement revenue was strong as operators expanded development
of midstream infrastructure. The continued trend of growing Permian produced
water supported record produced water royalty volumes and revenues. Finally, our
efforts towards data centers, power generation, and produced water desalination
and beneficial reuse continue to progress, and we are steadfastly working to
advance those into meaningful commercial outcomes.”
Third Quarter 2026 Highlights
• Achieved record performance results, including:
◦ Oil and gas royalty revenue of $167.3 million and oil and gas royalty
production of 42.3 thousand barrels of oil equivalent (“Boe”) per day
◦ Produced water royalty revenue of $41.4 million and produced water royalty
volumes of 5.5 million barrels (“bbl”) per day
◦ Land and Resource Management segment revenues of $201.6 million
◦ Consolidated revenues of $273.4 million
◦ Consolidated net income of $167.4 million, or $2.42 per share (diluted)
◦ Adjusted EBITDA (1) of $238.4 million
◦ Free cash flow (1) of $170.3 million
• Water Services and Operations segment revenues of $71.8 million
• As of September 30, 2026, TPL’s royalty acreage had an estimated 5.7 net well
permits, 8.6 net drilled but uncompleted wells (“DUCs”), and 2.5 net completed
but not producing wells (“CUPs”), totaling 16.8 net wells. (2) TPL had 132.5 net
producing wells as of September 30, 2026, and net producing wells added during
the quarter had an average lateral length of approximately 10,623 feet.
• Quarterly cash dividend of $0.60 per share was paid on September 15, 2026
Nine Months Ended September 30, 2026 Highlights
• Oil and gas royalty production of 39.7 thousand Boe per day
1
• Water sales revenue of $115.0 million
• Produced water royalty revenue of $112.0 million
• Land and Resource Management segment revenues of $519.0 million
• Water Services and Operations segment revenues of $237.3 million
• Consolidated net income of $464.2 million, or $6.73 per share (diluted)
• Adjusted EBITDA (1) of $635.4 million
• Free cash flow (1) of $462.3 million
• $124.6 million of total cash dividends paid through September 30, 2026
• $122.7 million of aggregate land acquisitions in Shackelford and Jones
Counties, Texas, in connection with our data center and power generation
initiatives, and in Winkler and Reeves Counties, Texas.
• Completed construction and commenced commissioning of the Phase 2B produced
water desalination facility in Orla, Texas with anticipated capacity of 10,000
inlet barrels per day.
• Announced an agreement with Chevron U.S.A. Inc., a subsidiary of Chevron
Corporation (NYSE: CVX) (“Chevron”) to provide land and brackish water resources
for Chevron’s recently announced development known as Project Kilby, involving a
large-scale power generation facility Chevron is developing to support a
customer data center in Reeves County, Texas.
• On May 5, 2026, TPL’s board of directors (the “Board”) appointed Peter Doyle
to the Board. Mr. Doyle is a co-founder and the Co-Chief Executive Officer of
Horizon Kinetics, which, through various owned subsidiaries, is TPL’s largest
stockholder.
(1) Reconciliations of non-GAAP performance measures are provided in the tables
below.
(2) Total may not foot due to rounding.
Financial Results for the Third Quarter of 2026 - Sequential
The Company reported net income of $167.4 million for the third quarter of 2026
compared to net income of $153.9 million for the second quarter of 2026.
Total revenues for the third quarter of 2026 were $273.4 million compared to
$246.1 million for the second quarter of 2026. The increase in total revenues
was primarily due to a $21.7 million increase in oil and gas royalty revenue, a
$12.5 million increase in easements and other surface-related income, and a $4.3
million increase in produced water royalties, partially offset by an $11.3
million decrease in water sales compared to the second quarter of 2026. For oil
and gas royalty revenue, the Company’s average realized price was $44.97 per Boe
in the third quarter of 2026 compared to $42.17 per Boe in the second quarter of
2026, and the Company’s share of production was 42.3 thousand Boe per day for
the third quarter of 2026 compared to 39.7 thousand Boe per day for the second
quarter of 2026. Water sales decreased in the third quarter of 2026 compared to
the second quarter of 2026 due to a decrease in average realized pricing,
partially offset by an increase in water sales volumes. TPL’s revenue streams
are directly impacted by commodity prices and development and operating
decisions made by its customers.
Total operating expenses were $65.6 million for the third quarter of 2026
compared to $54.2 million for the second quarter of 2026. The increase in
operating expenses was principally related to a $6.2 million increase in
depreciation, depletion and amortization expense, a $2.6 million increase in
general and administrative expenses, and a $2.2 million increase in water
service-related expenses during the third quarter of 2026 compared to the second
quarter of 2026.
2
Financial Results for the Nine Months Ended September 30, 2026 - Year Over Year
The Company reported net income of $464.2 million for the nine months ended
September 30, 2026 compared to net income of $358.0 million for the nine months
ended September 30, 2025.
Total revenues for the nine months ended September 30, 2026 were $756.3 million
compared to $586.6 million for the nine months ended September 30, 2025. The
increase in total revenues was primarily due to a $116.1 million increase in oil
and gas royalty revenue, a $21.3 million increase in produced water royalties, a
$20.2 million increase in land sales, a $6.1 million increase in water sales,
and a $6.0 million increase in easements and other surface-related income during
the nine months ended September 30, 2026 compared to the same period of 2025.
The Company’s share of oil and gas production was 39.7 thousand Boe per day for
the nine months ended September 30, 2026 compared to 33.6 thousand Boe per day
for the same period of 2025, and the Company’s average realized price was $41.60
per Boe for the nine months ended September 30, 2026 compared to $36.01 per Boe
for the same period of 2025. Produced water royalties increased due to increased
produced water volumes, and water sales increased primarily due to increased
water sales volumes. TPL’s revenue streams are directly impacted by commodity
prices and development and operating decisions made by its customers.
Total operating expenses were $174.3 million for the nine months ended September
30, 2026 compared to $143.7 million for the same period of 2025. The increase in
operating expenses was principally related to a $12.9 million increase in
depreciation, depletion and amortization, a $9.9 million increase in general and
administrative expenses, a $4.7 million increase in salaries and related
employee expenses, and a $3.7 million increase in water service-related expenses
during the nine months ended September 30, 2026 compared to the same period of
2025.
Quarterly Dividend Declared
On November 2, 2026, the Board declared a quarterly cash dividend of $0.60 per
share, payable on December 15, 2026 to stockholders of record at the close of
business on December 1, 2026.
Conference Call and Webcast Information
The Company will hold a conference call on Thursday, November 5, 2026 at 9:30
a.m. Central Time to discuss third quarter results. A live webcast of the
conference call will be available on the Investors section of the Company’s
website at www.TexasPacific.com. To listen to the live broadcast, go to the site
at least 15 minutes prior to the scheduled start time in order to register and
install any necessary audio software.
The conference call can also be accessed by dialing 1-877-407-4018 or
1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921
or 1-412-317-6671 and providing the conference ID# 13759100. The telephone
replay will be available starting shortly after the call through November 19,
2026.
About Texas Pacific Land Corporation
Texas Pacific Land Corporation is one of the largest land and royalty owners in
the State of Texas, with the majority of its ownership concentrated in the
Permian Basin. The Company is not an oil and gas producer, but its land and
royalty ownership provides revenue opportunities throughout the life cycle of a
well. These revenue opportunities include providing pipeline, utility, wellbore,
and commercial easements/leases; monetizing caliche and materials resources;
supplying source and recycled/treated produced water for well completions;
allowing access to subsurface pore space; granting produced water crossing
rights; and monetizing oil and gas royalty and mineral interests.
Visit TPL at www.TexasPacific.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this news release are, and certain statements made on the
related conference call may be, forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that are based on TPL’s beliefs, as
well as assumptions made by, and information currently available to, TPL, and
therefore involve risks and uncertainties that are difficult to predict.
Generally, future or conditional verbs such as “will,” “would,” “should,”
“could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,”
“expect,” and similar expressions or the negative of such terms identify
forward-looking statements. Forward-looking statements include, but are not
limited to, references to strategies, plans, objectives, expectations,
intentions, assumptions, future operations, and prospects; statements regarding
anticipated benefits of recent acquisitions or the Permian Basin’s future
drilling inventory and energy resources; and other statements
3
that are not historical facts. You should not place undue reliance on forward-
looking statements. Although TPL believes that plans, intentions and
expectations reflected in or suggested by any forward-looking statements made
herein are reasonable, TPL may be unable to achieve such plans, intentions or
expectations and actual results, and performance or achievements may differ
materially from those set forth in the forward-looking statements due to a
number of factors, including, but not limited to: the initiation or outcome of
potential litigation; any changes in general economic and/or industry specific
conditions; and the other risks discussed in TPL’s Annual Report on Form 10-K
and its Quarterly Reports on Form 10-Q. You can access TPL’s filings with the
Securities and Exchange Commission (“SEC”) through the SEC’s website at
www.sec.gov and TPL strongly encourages you to do so. These forward-looking
statements are based only on information available to TPL and speak only as of
the date hereof. Except as required by applicable law, TPL undertakes no
obligation to update any forward-looking statements or other statements herein
for revisions or changes after this communication is made.
Contact:
Investor Relations
IR@TexasPacific.com
4
FINANCIAL AND OPERATIONAL RESULTS
(unaudited)
Oil and Gas Activity
The table below provides financial and operational data by royalty stream:
Three Septem… Nine Septemb… Septem…
Months 30, June 30, Months 30, 30,
Ended 2026 2026 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Compa…
share
of
produ…
volum…
Oil(M… 1,578 1,280 4,203 3,616
Natur… 7,051 7,161 20,006 17,031
gas(M…
NGL(M… 1,142 1,142 3,312 2,705
Equiv… 3,895 3,615 10,849 9,160
Equiv…
per 42.3 39.7 39.7 33.6
day(M…
Oil
and
gas
royal…
reven…
(in
thous…
Oil $ 125,910 $ 119,273 $ 335,810 $ 229,932
royal…
Natur…
gas 15,628 2,618 28,049 33,576
royal…
NGL 25,737 23,698 67,172 51,448
royal…
Total
oil
and $ 167,275 $ 145,589 $ 431,031 $ 314,956
gas
royal…
Reali…
price…
Oil($… $ 83.57 $ 97.55 $ 83.67 $ 66.59
Natur… $ 2.40 $ 0.40 $ 1.52 $ 2.13
gas($…
NGL($… $ 24.37 $ 22.44 $ 21.93 $ 20.56
Equiv… $ 44.97 $ 42.17 $ 41.60 $ 36.01
(1) Term Definition
Bbl One stock tank barrel of 42 U.S. gallons liquid volume used
herein in reference to crude oil, condensate or NGL.
Boe One barrel of oil equivalent.
MBbls One thousand barrels of crude oil, condensate or NGL.
MBoe One thousand Boe.
MBoe/d One thousand Boe per day.
Mcf One thousand cubic feet of natural gas.
MMcf One million cubic feet of natural gas.
Natural gas liquids. Hydrocarbons found in natural gas that
NGL may be extracted as liquefied petroleum gas and natural
gasoline.
5
Water Services and Operations Activity
The table below provides financial and operational data for water sales and
produced water royalties:
Three Nine
Mont… Mont…
Ended Ended
Sept… June Sept… Sep…
30, 30, 30, 30,
2026 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Wa…
vo…
(in
MB…
Wa… 61,… 60,… 195,… 186…
sa…
Pr…
wa… 509… 443… 1,36… 1,1…
ro…
Wa…
vo…
in
ba…
per
day
(in
MB…
Wa… 672 663 718 683
sa…
Pr…
wa… 5,5… 4,8… 5,009 4,1…
ro…
Wa…
re…
(in
th…
Wa… $ 28,… $ 39,… $ 115… $ 108,…
sa…
Pr…
wa… $ 41,… $ 37,… $ 111… $ 90,7…
ro…
(1) MBbl = 1 thousand barrels of water.
(2) MBbl/d = 1 thousand barrels of water per day.
6
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(in thousands, except share and per share amounts) (unaudited)
Three Septem… Nine Septemb… Septem…
Months 30, June 30, Months 30, 30,
Ended 2026 2026 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Reven…
Oil
and $ 167,275 $ 145,589 $ 431,031 $ 314,956
gas
royal…
Water 28,437 39,733 115,033 108,968
sales
Produ…
water 41,386 37,075 111,990 90,705
royal…
Easem…
and
other 36,181 23,662 77,158 71,163
surfa…
income
Land 111 — 21,055 819
sales
Total 273,390 246,059 756,267 586,611
reven…
Expen…
Salar…
and
relat… 17,167 15,562 47,716 43,031
emplo…
expen…
Water
servi… 13,817 11,570 39,674 36,005
expen…
Gener…
and 10,600 8,004 27,235 17,356
admin…
expen…
Depre…
deple… 22,833 16,639 53,515 40,603
and
amort…
Ad
valor…
and 1,190 2,467 6,199 6,701
other
taxes
Total
opera… 65,607 54,242 174,339 143,696
expen…
Opera… 207,783 191,817 581,928 442,915
income
Inter… -981 -973 -2,946 —
expen…
Other
incom… 3,590 2,854 8,672 15,649
net
Income
before 210,392 193,698 587,654 458,564
income
taxes
Income
tax 43,024 39,768 123,454 100,534
expen…
Net $ 167,368 $ 153,930 $ 464,200 $ 358,030
income
Net
income
per
share
of
common
stock
Basic $ 2.43 $ 2.23 $ 6.73 $ 5.19
Dilut… $ 2.42 $ 2.23 $ 6.73 $ 5.19
Weigh…
avera…
number
of
shares
of
common
stock
outst…
Basic 68,974… 68,974,… 68,969,… 68,952…
Dilut… 69,036… 69,034,… 69,019,… 69,024…
7
SEGMENT OPERATING RESULTS
(dollars in thousands) (unaudited)
Th… Se… Ju…
Mo… 30, 30,
En… 20… 20…
──────────────────────────────────────────────────────────────────────────────
La… Wa… La… Wat…
and Se… Co… and Ser… Con…
Re… and Re… and
Ma… Op… Ma… Ope…
R…
O…
a… $ 16… $ — $ 16… $ 14… $ — $ 14…
g…
r…
W… — 28… 28… — 39… 39…
s…
P…
w… — 41… 41… — 37… 37…
r…
E…
a…
o… 34… 1,… 36… 18… 5,… 23…
s…
i…
L… 111 — 111 — — —
s…
T… 20… 71… 27… 16… 82… 24…
r…
E…
S…
a…
r… 9,… 7,… 17… 8,… 7,… 15…
e…
e…
W…
s… — 13… 13… — 11… 11…
e…
G…
a… 7,… 3,… 10… 5,… 2,… 8,…
a…
e…
D…
d… 17… 5,… 22… 11… 4,… 16…
a…
a…
Ad
v…
a… 1,… 41 1,… 2,… 188 2,…
o…
t…
T…
o… 35… 30… 65… 27… 26… 54…
e…
O… 16… 41… 20… 13… 55… 19…
i…
I… -7… -1… -9… -7… -1… -9…
e…
O…
i… 2,… 862 3,… 2,… 714 2,…
n…
I…
b… 16… 42… 21… 13… 56… 19…
i…
t…
I…
t… 34… 8,… 43… 28… 11… 39…
e…
N… $ 13… $ 33… $ 16… $ 10… $ 44… $ 15…
i…
8
SEGMENT OPERATING RESULTS (Continued)
(dollars in thousands) (unaudited)
Ni… Se… Se…
Mo… 30, 30,
En… 20… 20…
──────────────────────────────────────────────────────────────────────────────
La… Wa… La… Wa…
and Se… Co… and Se… Co…
Re… and Re… and
Ma… Op… Ma… Op…
R…
O…
a… $ 43… $ — $ 43… $ 31… $ — $ 314…
g…
r…
W… — 11… 11… — 108… 108…
s…
P…
w… — 11… 11… — 90,… 90,…
r…
E…
a…
o… 66… 10… 77… 61… 9,5… 71,…
s…
i…
L… 21… — 21… 819 — 819
s…
T… 51… 23… 75… 37… 209… 586…
r…
E…
S…
a…
r… 25… 22… 47… 21… 21,… 43,…
e…
e…
W…
s… — 39… 39… — 36,… 36,…
e…
G…
a… 17… 9,… 27… 10… 6,9… 17,…
a…
e…
D…
d… 38… 14… 53… 27… 13,… 40,…
a…
a…
Ad
v…
a… 5,… 241 6,… 6,… 34 6,7…
o…
t…
T…
o… 87… 86… 17… 66… 77,… 143…
e…
O… 43… 15… 58… 31… 131… 442…
i…
I… -2… -5… -2… — — —
e…
O…
i… 6,… 2,… 8,… 12… 3,2… 15,…
n…
I…
b… 43… 15… 58… 32… 134… 458…
i…
t…
I…
t… 91… 32… 12… 70… 29,… 100…
e…
N… $ 34… $ 12… $ 46… $ 25… $ 105… $ 358…
i…
9
NON-GAAP PERFORMANCE MEASURES AND DEFINITIONS
In addition to amounts presented in accordance with GAAP, we also present
certain supplemental non-GAAP performance measurements. These measurements are
not to be considered more relevant or accurate than the measurements presented
in accordance with GAAP. In compliance with the requirements of the SEC, our
non-GAAP measurements are reconciled to net income, the most directly comparable
GAAP performance measure. For all non-GAAP measurements, neither the SEC nor any
other regulatory body has passed judgment on these non-GAAP measurements.
EBITDA, Adjusted EBITDA, and Free Cash Flow
EBITDA is a non-GAAP financial measurement of earnings before interest expense,
taxes, depreciation, depletion and amortization. The purpose of presenting
EBITDA is to highlight earnings without finance, taxes, and depreciation,
depletion and amortization expense, and its use is limited to specialized
analysis.
The purpose of presenting Adjusted EBITDA is to highlight earnings without non-
cash activity such as share-based compensation and other non-recurring or
unusual items, if applicable. Additionally, Adjusted EBITDA is a metric used by
the compensation committee of our Board to evaluate the Company’s performance in
determining the short-term and long-term incentive compensation of our executive
officers on an annual basis. We calculate Adjusted EBITDA as EBITDA plus
employee share-based compensation, less land sale with financing arrangement and
pension curtailment and settlement gain, as applicable to the periods presented.
The purpose of presenting free cash flow is to provide investors a metric to
measure the funds available for investing in future acquisitions and returning
capital to our stockholders through dividends and share repurchases after
current income tax expense and purchases of fixed assets. Additionally, free
cash flow is a metric used by the compensation committee of our Board to
evaluate the Company’s performance in determining the short-term and long-term
incentive compensation of our executive officers. To calculate free cash flow,
net income is adjusted by adding back income tax expense, depreciation,
depletion and amortization and employee share-based compensation, less current
income tax expenses, land sale with financing arrangement, purchases of fixed
assets and pension curtailment and settlement gain, as applicable to the periods
presented.
We have presented EBITDA, Adjusted EBITDA, and free cash flow because we believe
that these metrics are useful supplements to net income in analyzing the
Company’s operating performance, ability to fund future acquisitions, ability to
return capital to our stockholders and explaining how our executive officers are
compensated. Our definitions of EBITDA, Adjusted EBITDA, and free cash flow may
differ from computations of similarly titled measures of other companies.
The following table presents a reconciliation of net income to EBITDA and
Adjusted EBITDA for the three months ended September 30, 2026 and June 30, 2026
and for the nine months ended September 30, 2026 and September 30, 2025 (in
thousands):
Three Septem… Nine Septemb… Septem…
Months 30, June 30, Months 30, 30,
Ended 2026 2026 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 167,368 $ 153,930 $ 464,200 $ 358,030
income
Add:
Inter… 981 973 2,946 —
expen…
Income
tax 43,024 39,768 123,454 100,534
expen…
Depre…
deple… 22,833 16,639 53,515 40,603
and
amort…
EBITDA 234,206 211,310 644,115 499,167
Add
(dedu…
Emplo…
share… 4,168 4,279 12,189 10,061
compe…
Land
sale
with — — -20,944 —
finan…
arran…
Adjus… $ 238,374 $ 215,589 $ 635,360 $ 509,228
EBITDA
10
The following table presents a reconciliation of net income to free cash flow
for the three months ended September 30, 2026 and June 30, 2026 and for the nine
months ended September 30, 2026 and September 30, 2025 (in thousands):
Three Septem… Nine Septemb… Septem…
Months 30, June 30, Months 30, 30,
Ended 2026 2026 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 167,368 $ 153,930 $ 464,200 $ 358,030
income
Add
(dedu…
Income
tax 43,024 39,768 123,454 100,534
expen…
Depre…
deple… 22,833 16,639 53,515 40,603
and
amort…
Emplo…
share… 4,168 4,279 12,189 10,061
compe…
Curre…
income -52,580 -38,161 -127,819 -95,430
tax
expen…
Land
sale
with — — -20,944 —
finan…
arran…
Purch…
of -13,984 -21,853 -43,185 -30,878
fixed
assets
(Incr…
decre…
in
accou…
payab…
relat… -505 930 855 -3,444
to
purch…
of
fixed
assets
Free
cash $ 170,324 $ 155,532 $ 462,265 $ 379,476
flow
11