Earnings release
Page 1
Exhibit 99.1 logo_texas2a.jpg TEXAS PACIFIC LAND CORPORATION ANNOUNCES RECORD SECOND QUARTER RESULTS AND ANNUAL STOCKHOLDER MEETING DATE Earnings Call to be Held Thursday, August 7, 2025 at 9:30 am CT DALLAS, TX (August 6, 2025) – Texas Pacific Land Corporation (NYSE: TPL) (the “Company,” “TPL,” “we,” “our” or “us”), one of the largest landowners in the State of Texas with surface and royalty ownership that provide revenue opportunities through the support of energy production, today announced its financial and operating results for the second quarter of 2025. Second Quarter 2025 Highlights • Record results including: ◦ Oil and gas royalty production of 33.2 thousand barrels of oil equivalent (“Boe”) per day ◦ Easements and other surface-related income revenue (“SLEM”) of $36.2 million ◦ Produced water royalties revenue of $30.7 million • In July, began construction of 10,000 barrel per day produced water desalination facility in in Orla, Texas with estimated service date in late 2025. • As of June 30, 2025, TPL’s royalty acreage had an estimated 6.0 net well permits, 11.1 net drilled but uncompleted wells (“DUCs”), and 5.1 net completed but not producing wells (“CUPs”). Net well permits, DUCs, and CUPs total 22.2 net wells . TPL had 95.4 net producing wells, and net producing wells added during the quarter had an average lateral length of approximately 9,376 feet. • Land and Resource Management segment revenues of $128.5 million • Water Services and Operations segment revenues of $59.0 million • Consolidated net income of $116.1 million, or $5.05 per share (diluted) • Adjusted EBITDA of $166.2 million • Free cash flow of $130.1 million • Quarterly cash dividend of $1.60 per share was paid on June 16, 2025 Six Months Ended June 30, 2025 Highlights • Oil and gas royalty production of 32.2 thousand Boe per day • Produced water royalties revenue of $58.4 million • Land and Resource Management segment revenues of $255.1 million • Water Services and Operations segment revenues of $128.4 million • Consolidated net income of $236.8 million, or $10.29 per share (diluted) • Adjusted EBITDA of $335.6 million (1) (2) (2) (2)
Page 2
1
Page 3
• Free cash flow of $256.6 million • $74.2 million of total cash dividends paid through June 30, 2025 Total may not foot due to rounding. Reconciliations of non-GAAP performance measures are provided in the tables below. “This quarter’s results demonstrate TPL’s financial resilience amid commodity price volatility, with quarterly revenue records achieved in both SLEM and produced water royalties,” said Tyler Glover, Chief Executive Officer of the Company. “TPL’s enormous footprint across royalties, surface, and water positions us to extract numerous sources of value from the Permian’s exceptional resource. In particular, record produced water royalty revenue reflects TPL’s unique position to deliver essential solutions and capture high-quality cash flows. With produced water management becoming an increasing focal point across the Permian, we have led the industry in procuring out-of- basin pore space for disposal, developing proprietary produced water desalination technology, and advancing beneficial reuse. Each of these initiatives represents significant revenue potential over both near and long-term horizons, while also ensuring that the broader Permian can sustain strong development.” Financial Results for the Second Quarter of 2025 - Sequential The Company reported net income of $116.1 million for the second quarter of 2025 compared to net income of $120.7 million for the first quarter of 2025. Total revenues for the second quarter of 2025 were $187.5 million compared to $196.0 million for the first quarter of 2025. The decrease in total revenues was primarily due to a $16.2 million decrease in oil and gas royalty revenue and a $13.2 million decrease in water sales, partially offset by an $18.0 million increase in easements and other surface-related income compared to the first quarter of 2025. The Company’s average realized price was $32.94 per Boe in the second quarter of 2025 compared to $41.58 per Boe in the first quarter of 2025, and the Company’s share of production was 33.2 thousand Boe per day for the second quarter of 2025 compared to 31.1 thousand Boe per day for the first quarter of 2025. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers. Total operating expenses were $43.8 million for the second quarter of 2025 compared to $45.9 million for the first quarter of 2025. The decrease in operating expenses was principally related to a $2.7 million decrease in water service-related expenses during the second quarter of 2025 compared to the first quarter of 2025. Financial Results for the Six Months Ended June 30, 2025 - Year Over Year The Company reported net income of $236.8 million for the six months ended June 30, 2025 compared to net income of $229.0 million for the six months ended June 30, 2024. Total revenues for the six months ended June 30, 2025 were $383.5 million compared to $346.5 million for the six months ended June 30, 2024. The increase in total revenues was primarily due to a $24.3 million increase in oil and gas royalty revenue and a $17.2 million increase in easements and other surface-related income. The Company’s share of production was 32.2 thousand Boe per day for the six months ended June 30, 2025 compared to 24.9 thousand Boe per day for the same period of 2024, and the average realized price was $37.10 per Boe for the six months ended June 30, 2025 compared to $42.07 per Boe for the same period of 2024. Easements and other surface-related income increased principally due to an increase of $10.6 million in pipeline easements, $2.3 million in wellbore easements and $1.5 million in commercial leases. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers. Total operating expenses were $89.7 million for the six months ended June 30, 2025 compared to $77.2 million for the same period of 2024. The increase in operating expenses was principally related to a $15.0 million increase in depletion expense associated with oil and gas royalty interests acquired during the second half of 2024. Quarterly Dividend Declared On August 5, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $1.60 per share, payable on September 16, 2025 to stockholders of record at the close of business on September 2, 2025. (2) (1) (2) 2
Page 4
Conference Call and Webcast Information The Company will hold a conference call on Thursday, August 7, 2025 at 9:30 a.m. Central Time to discuss second 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# 13753281. The telephone replay will be available starting shortly after the call through August 21, 2025. 2025 Annual Meeting of Stockholders The Company also announced that its 2025 Annual Meeting of Stockholders (“Annual Meeting”) will be held on November 6, 2025, at the Omni Dallas Hotel located at 555 South Lamar Street Dallas, Texas 75202. The meeting will be held in person at 11:00 a.m. Central Time with no remote streaming. About Texas Pacific Land Corporation Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 874,000 acres of land, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provide revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fee payments for use of the Company’s land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and/or treated produced water, revenue from the Company’s oil and gas royalty interests, and revenue related to saltwater disposal on the Company’s land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits principally related to a variety of land uses including, but not limited to, midstream infrastructure projects and hydrocarbon processing facilities. 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 the Permian Basin’s future drilling inventory and energy resources; and other statements 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 3
Page 5
FINANCIAL AND OPERATIONAL RESULTS (unaudited) Three Months Ended Six Months Ended June 30,2025 March 31,2025 June 30,2025 June 30,2024 Company’s share of production volumes: Oil (MBbls) 1,209 1,123 2,332 1,958 Natural gas (MMcf) 5,659 5,230 10,889 7,658 NGL (MBbls) 868 807 1,675 1,294 Equivalents (MBoe) 3,020 2,801 5,822 4,528 Equivalents per day (MBoe/d) 33.2 31.1 32.2 24.9 Oil and gas royalty revenue (in thousands): Oil royalties $ 73,893 $ 76,179 $ 150,072 $ 147,361 Natural gas royalties 4,574 17,561 22,135 9,429 NGL royalties 16,539 17,505 34,044 25,143 Total oil and gas royalties $ 95,006 $ 111,245 $ 206,251 $ 181,933 Realized prices: Oil ($/Bbl) $ 63.99 $ 71.05 $ 67.39 $ 78.82 Natural gas ($/Mcf) $ 0.87 $ 3.63 $ 2.20 $ 1.33 NGL ($/Bbl) $ 20.60 $ 23.46 $ 21.98 $ 21.00 Equivalents ($/Boe) $ 32.94 $ 41.58 $ 37.10 $ 42.07 (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. 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. NGL Natural gas liquids. Hydrocarbons found in natural gas that may be extracted as liquefied petroleum gas and natural gasoline. (1) (1) 4
Page 6
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share amounts) (unaudited) Three Months Ended Six Months Ended June 30,2025 March 31,2025 June 30,2025 June 30,2024 Revenues: Oil and gas royalties $ 95,006 $ 111,245 $ 206,251 $ 181,933 Water sales 25,577 38,813 64,390 77,776 Produced water royalties 30,737 27,700 58,437 48,307 Easements and other surface-related income 36,223 18,225 54,448 37,216 Land sales — — — 1,244 Total revenues 187,543 195,983 383,526 346,476 Expenses: Salaries and related employee expenses 14,072 14,572 28,644 25,232 Water service-related expenses 8,451 11,126 19,577 25,036 General and administrative expenses 5,693 6,072 11,765 15,211 Depreciation, depletion and amortization 13,699 11,941 25,640 7,933 Ad valorem and other taxes 1,877 2,199 4,076 3,801 Total operating expenses 43,792 45,910 89,702 77,213 Operating income 143,751 150,073 293,824 269,263 Other income, net 5,240 4,321 9,561 23,163 Income before income taxes 148,991 154,394 303,385 292,426 Income tax expense 32,851 33,742 66,593 63,420 Net income $ 116,140 $ 120,652 $ 236,792 $ 229,006 Net income per share of common stock Basic $ 5.05 $ 5.25 $ 10.30 $ 9.96 Diluted $ 5.05 $ 5.24 $ 10.29 $ 9.95 Weighted average number of shares of common stock outstanding Basic 22,987,326 22,980,695 22,984,029 22,995,486 Diluted 23,013,580 23,005,847 23,008,954 23,018,313 5
Page 7
SEGMENT OPERATING RESULTS (dollars in thousands) (unaudited) Three Months Ended June 30,2025 March 31,2025 Land andResourceManagementWater Servicesand OperationsConsolidated Land andResourceManagementWater Servicesand OperationsConsolidated Revenues: Oil and gas royalties $ 95,006 $ — $ 95,006 $ 111,245 $ — $ 111,245 Water sales — 25,577 25,577 — 38,813 38,813 Produced water royalties — 30,737 30,737 — 27,700 27,700 Easements and other surface-related income 33,491 2,732 36,223 15,336 2,889 18,225 Total revenues 128,497 59,046 187,543 126,581 69,402 195,983 Expenses: Salaries and related employeeexpenses 7,025 7,047 14,072 7,404 7,168 14,572 Water service-related expenses — 8,451 8,451 — 11,126 11,126 General and administrativeexpenses 3,648 2,045 5,693 3,313 2,759 6,072 Depreciation, depletion andamortization 9,137 4,562 13,699 7,689 4,252 11,941 Ad valorem and other taxes 1,864 13 1,877 2,189 10 2,199 Total operating expenses 21,674 22,118 43,792 20,595 25,315 45,910 Operating income 106,823 36,928 143,751 105,986 44,087 150,073 Other income, net 4,156 1,084 5,240 3,416 905 4,321 Income before income taxes 110,979 38,012 148,991 109,402 44,992 154,394 Income tax expense 24,410 8,441 32,851 23,858 9,884 33,742 Net income $ 86,569 $ 29,571 $ 116,140 $ 85,544 $ 35,108 $ 120,652 6
Page 8
SEGMENT OPERATING RESULTS (Continued) (dollars in thousands) (unaudited) Six Months Ended June 30,2025 June 30,2024 Land andResourceManagementWater Servicesand OperationsConsolidated Land andResourceManagementWater Servicesand OperationsConsolidated Revenues: Oil and gas royalties $ 206,251 $ — $ 206,251 $ 181,933 $ — $ 181,933 Water sales — 64,390 64,390 — 77,776 77,776 Produced water royalties — 58,437 58,437 — 48,307 48,307 Easements and other surface-related income 48,827 5,621 54,448 32,340 4,876 37,216 Land sales — — — 1,244 — 1,244 Total revenues 255,078 128,448 383,526 215,517 130,959 346,476 Expenses: Salaries and related employeeexpenses 14,429 14,215 28,644 12,945 12,287 25,232 Water service-related expenses — 19,577 19,577 — 25,036 25,036 General and administrativeexpenses 6,961 4,804 11,765 10,663 4,548 15,211 Depreciation, depletion andamortization 16,826 8,814 25,640 1,506 6,427 7,933 Ad valorem and other taxes 4,053 23 4,076 3,799 2 3,801 Total operating expenses 42,269 47,433 89,702 28,913 48,300 77,213 Operating income 212,809 81,015 293,824 186,604 82,659 269,263 Other income, net 7,572 1,989 9,561 18,944 4,219 23,163 Income before income taxes 220,381 83,004 303,385 205,548 86,878 292,426 Income tax expense 48,268 18,325 66,593 44,448 18,972 63,420 Net income $ 172,113 $ 64,679 $ 236,792 $ 161,100 $ 67,906 $ 229,006 7
Page 9
NON-GAAP PERFORMANCE MEASURES AND DEFINITIONS In addition to amounts presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we also present certain supplemental non-GAAP performance measures. These measures are not to be considered more relevant or accurate than the measures presented in accordance with GAAP. In compliance with the requirements of the SEC, our non-GAAP measures are reconciled to net income, the most directly comparable GAAP performance measure. For all non-GAAP measures, neither the SEC nor any other regulatory body has passed judgment on these non-GAAP measures. EBITDA, Adjusted EBITDA and Free Cash Flow EBITDA is a non-GAAP financial measure 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. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation. 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. We calculate free cash flow as Adjusted EBITDA less current income tax expense and capital expenditures. The purpose of presenting free cash flow is to provide an additional measure of operating performance. 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. 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 EBITDA, Adjusted EBITDA and free cash flow to net income for the three months ended June 30, 2025 and March 31, 2025 and for the six months ended June 30, 2025 and June 30, 2024 (in thousands): Three Months Ended Six Months Ended June 30,2025 March 31,2025 June 30,2025 June 30,2024 Net income $ 116,140 $ 120,652 $ 236,792 $ 229,006 Add: Income tax expense 32,851 33,742 66,593 63,420 Depreciation, depletion and amortization 13,699 11,941 25,640 7,933 EBITDA 162,690 166,335 329,025 300,359 Add: Employee share-based compensation 3,485 3,083 6,568 4,920 Adjusted EBITDA 166,175 169,418 335,593 305,279 Deduct: Current income tax expense (32,310) (32,954) (65,264) (62,664) Capital expenditures (3,808) (9,908) (13,716) (12,161) Free cash flow $ 130,057 $ 126,556 $ 256,613 $ 230,454 8