Texas Pacific Land Corporation (9WY)
Summary
9WY Chart
Buy Texas Pacific Land - They're Not Making It Any More
Texas Pacific Land Corporation delivered record Q2 2026 revenue, net income, and free cash flow, driven by robust oil, gas, and water royalties. A recent Texas moratorium on new data center grid connections threatens up to 20% of the U.S. pipeline, impacting land and infrastructure demand. The Company's strategic positioning in the Midland region and its water royalty and desalination operations provide diversified exposure to energy and data center trends.
Texas Pacific Land: Priced For Perfection
Texas Pacific Land Corporation delivered a record quarter, but results were driven by a transitory oil price spike rather than sustainable volume growth. TPL maintains industry-leading margins, free cash flow, and return metrics, but its valuation is elevated with a GAAP P/E of 44.7 and EV/EBITDA of 32.28. The company is fully unhedged, highly sensitive to oil price swings, and concentrated in the Permian Basin, amplifying both upside and downside risks.
Texas Pacific Land Q2 Earnings Call Highlights
Texas Pacific Land NYSE: TPL reported record quarterly revenue, net income and free cash flow for the second quarter of 2026, supported by higher oil and gas royalty production, produced-water royalty volumes and surface-related revenue.
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Texas Pacific Land Corporation Profile
| Oil, Gas & Consumable Fuels Industry | Energy Sector | Tyler Glover CEO | XFRA Exchange | 88262P102 CUSIP |
| US Country | 114 Employees | 1 Sep 2026 Last Dividend | 23 Dec 2025 Last Split | 31 Dec 1987 IPO Date |
Overview
Texas Pacific Land Corporation is a multifaceted company engaged in the management of land and natural resources, along with offering a suite of water services and operations. Founded in 1888, the company oversees the management of approximately 880,000 acres of land predominantly located in the western part of Texas. Its operations span a range of activities, including managing nonparticipating perpetual oil and gas royalty interests (NPRI), engaging in easements and commercial leases, and providing comprehensive water services to operators in the Permian Basin. With its headquarters in Dallas, Texas, Texas Pacific Land Corporation has cemented its role as a key player in land and resource management as well as water services in one of the most significant oil-producing regions in the United States.
Products and Services
Land and Resource Management:
- Oil and Gas Royalties: The company owns varying degrees of nonparticipating perpetual oil and gas royalty interests across different parcels of land in Texas. This includes a 1/128th NPRI under approximately 85,000 acres, a 1/16th NPRI under approximately 371,000 acres, alongside approximately 4,000 additional net royalty acres.
- Easements and Leases: Engages in granting easements and commercial leases for various purposes including oil, gas, and related hydrocarbons, as well as power line and utility easements, and subsurface wellbore easements. The company also leases land for processing, storage, and compression facilities and roads.
- Material Sales: Involves the sale of natural resources and materials extracted from its managed lands, such as caliche, contributing to the construction and maintenance of infrastructure.
Water Services and Operations:
- Water Sourcing and Disposal: Provides comprehensive water services that range from water sourcing, produced-water gathering and treatment, to disposal solutions specifically catered to the needs of operators within the Permian Basin. The approach ensures a sustainable management and utilization of water resources in oil production activities.
- Infrastructure Development: Works on the development of essential infrastructure required for water sourcing, including gathering systems and disposal facilities, ensuring efficient water management and distribution for oil production.
- Water Tracking and Analytics: Offers advanced water tracking and analytics services, designed to optimize the management and use of water in the oil production process by leveraging technology to monitor and analyze water usage and quality.
- Well Testing Services: Provides well testing services to evaluate the performance and water requirements of oil wells, ensuring that extraction processes are both efficient and environmentally sustainable.
- Water Royalties: Holds royalties for water sourced from its lands, creating an additional revenue stream from the utilization of natural water resources present in its managed properties.
