Key Highlights

  • Third-quarter Net Income reached USD 167.4 million, or USD 2.42 a diluted share, against USD 121.2 million, or USD 1.76.
  • Total Revenue climbed to USD 273.4 million from USD 203.1 million as average WTI crude reached USD 87.12 a barrel.
  • Oil and gas royalties increased to USD 167.3 million from USD 108.7 million.
  • Water sales dipped to USD 28.4 million from USD 44.6 million, though produced water royalties rose to USD 41.4 million.

Crude Pricing Lifts Royalty Income

Texas Pacific Land (NYSE:TPL) filed its third-quarter 2026 report on November 4, 2026. The company holds roughly 896,000 surface acres, chiefly in the Permian Basin, and royalty interests equal to about 224,000 net royalty acres. It does not drill for or produce oil and gas, so Earnings depend on operator activity and Commodity prices. Average WTI crude was USD 87.12 against USD 65.78, and the nine-month average rose about 27%. The filing ties the higher prices to the Iran conflict and disruption around the Strait of Hormuz, while calling the rest of 2026 uncertain. Crude prices are the key external input, since the company earns royalties on production it does not operate itself.

Water Sales Soften as Surface Income Grows

Land and Resource Management revenue increased to USD 201.6 million from USD 122.3 million, and its net income reached USD 133.8 million against USD 80.8 million. Water Services and Operations revenue fell to USD 71.8 million from USD 80.8 million, with net income of USD 33.6 million versus USD 40.5 million. The extract did not explain the water decline. Operating Income rose to USD 207.8 million from USD 149.1 million, while general and administrative costs nearly doubled to USD 10.6 million and depreciation, depletion and amortization reached USD 22.8 million. The water results drew less revenue than the prior year, and the filing does not attribute that drop to a specific cause.

Land Transactions, a Data Center Tie-In and Capital Returns

Nine-month net income was USD 464.2 million, or USD 6.73 a share, compared with USD 358.0 million, or USD 5.19. During 2026 the company sold land for USD 42.5 million to a data center power project in Reeves County, which a major energy company is developing. Payments run through 2046, with put and call options tied to milestones. Land purchases totaled USD 122.7 million in the first nine months and another USD 145.0 million in October, covering land and royalty interests. The October purchases alone exceeded the nine-month total on our reading of the figures, a notable pace. The company targets cash of about USD 700.0 million, and cash of USD 369.6 million sits below that level, with excess free Cash Flow expected to go to special dividends or Buybacks once it is reached.

Where Things Stand

Higher crude prices and royalty volumes drove the rise, while the water Business moved the other way. Earnings Per Share reached USD 2.42 because royalties climbed USD 58.6 million on our arithmetic and surface income more than doubled. The filing does not explain the water decline. Watch whether oil prices hold, the pace of Permian activity, the October land purchases and any move to direct cash toward the USD 700.0 million target. Investors should also check whether the USD 369.6 million cash balance climbs toward that goal before special distributions begin.