Texas Pacific Land Corp. (TPL) reported a record fourth‑quarter and full‑year 2025 performance, posting net income of $481.4 million and total revenue of $798.2 million, up from $454.0 million and $705.8 million respectively in 2024. The company’s diluted earnings per share for the quarter were $1.79, while the full‑year diluted EPS was $6.97. Production averaged 34.6 thousand barrels of oil equivalent per day, and TPL declared a quarterly cash dividend of $0.60 per share, a 12.5% increase over the prior dividend.
The Q4 EPS beat consensus estimates of $1.73 and $1.77 by $0.06 and $0.02 respectively. The beat was driven by higher oil and gas royalty revenue, which rose by $38.3 million, and by a $19.0 million increase in water sales revenue. Strong royalty volumes and efficient cost management helped maintain a high margin in a low commodity‑price environment.
Q4 revenue of $211.6 million exceeded the $204.0 million estimate by $7.6 million, a 3.7% beat. The increase was largely due to the $38.3 million rise in oil and gas royalty revenue and the $19.0 million growth in water sales, reflecting robust demand for water services and a record volume of produced water royalties.
Segment revenue for the full year 2025 was $490.7 million for Land and Resource Management and $307.5 million for Water Services and Operations. Water services grew 36% year‑over‑year to 1 million barrels per day, while oil and gas royalty production increased 22% year‑over‑year, underscoring the company’s counter‑cyclical growth strategy.
Adjusted EBITDA margin was 84% in Q4 and 87% in FY 2024, reflecting the capital‑light nature of TPL’s business and strong pricing power. The high margin was supported by a favorable mix of high‑margin water services and royalty income, offsetting the impact of lower commodity prices.
The dividend increase to $0.60 per share signals TPL’s confidence in its cash‑flow generation and its commitment to returning value to shareholders. The company’s robust free‑cash‑flow of approximately $498 million, an 8% year‑over‑year increase, provides a solid foundation for future investments.
CEO Tyler Glover said, "Excellent finish to 2025 with quarterly records set for oil and gas royalty production, water sales volumes and produced water royalties." He added, "Water sales volumes this quarter exceeded 1 million barrels per day for the first time in our history, growing 36% year‑over‑year and produced water royalty volumes grew 22% year‑over‑year." Glover also highlighted the company’s strategic investment in Bolt Data & Energy and the near‑completion of a desalination facility.
CFO Chris Steddum noted that the company generated record free cash flow of approximately $498 million, an 8% year‑over‑year increase. Investors reacted cautiously, focusing on the slight revenue miss relative to the higher consensus estimate and the company’s continued emphasis on capital‑light growth.
The results demonstrate TPL’s resilience in a challenging commodity‑price environment and reinforce its position as a leading royalty and water‑services provider in the Permian Basin.
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