– Achieved Record Quarterly Revenues and Net Income from Water Segment

– Earnings Call to be Held Thursday, November 6, 2025 at 9:30 am CT

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 provides revenue opportunities through the support of energy production, today announced its financial and operating results for the third quarter of 2025.

Third Quarter 2025 Highlights

• Executed purchase agreement on approximately 17,306 net royalty acres (standardized to 1/8th) primarily located in the Midland Basin⁽¹⁾ (which subsequently closed November 3, 2025) and acquired approximately 8,147 surface acres in Martin County, Texas in September 2025 for a combined aggregate purchase price of $505 million. Both acquisitions were all cash transactions.
  
  
  
  
• Completed a new $500 million revolving credit facility on October 23, 2025⁽²⁾.
  
  
  
  
• Three-for-one stock split of TPL’s common stock was approved by TPL’s Board of Directors (the “Board”) on November 3, 2025, subject to finalization of the effective date as determined by the Board.
  
  
  
  
• Record results, including:
  
  
  
  
  • Oil and gas royalty production of 36.3 thousand barrels of oil equivalent (“Boe”) per day
    
    
    
    
  • Water sales revenue of $44.6 million
    
    
    
    
  • Produced water royalties revenue of $32.3 million
    
    
    
    
• In July 2025, TPL began construction of a 10,000 barrel per day produced water desalination facility in Orla, Texas with estimated service date by the end of 2025.
  
  
  
  
• As of September 30, 2025, TPL’s royalty acreage had an estimated 6.1 net well permits, 9.9 net drilled but uncompleted wells (“DUCs”), and 3.1 net completed but not producing wells (“CUPs”). Net well permits, DUCs, and CUPs total 19.0 net wells⁽³⁾. TPL had 100.5 net producing wells as of September 30, 2025, and net producing wells added during the quarter had an average lateral length of approximately 10,619 feet.⁽⁴⁾
  
  
  
  
• Land and Resource Management segment revenues of $122.3 million
  
  
  
  
• Water Services and Operations segment revenues of $80.8 million, a Company record
  
  
  
  
• Consolidated net income of $121.2 million, or $5.27 per share (diluted)
  
  
  
  
• Adjusted EBITDA⁽⁵⁾ of $173.6 million
  
  
  
  
• Free cash flow⁽⁵⁾ of $122.9 million
  
  
  
  
• Quarterly cash dividend of $1.60 per share was paid on September 16, 2025

Nine Months Ended September 30, 2025 Highlights

• Oil and gas royalty production of 33.6 thousand Boe per day
  
  
  
  
• Produced water royalties revenue of $90.7 million
  
  
  
  
• Land and Resource Management segment revenues of $377.3 million
  
  
  
  
• Water Services and Operations segment revenues of $209.3 million
  
  
  
  
• Consolidated net income of $358.0 million, or $15.56 per share (diluted)
  
  
  
  
• Adjusted EBITDA⁽⁵⁾ of $509.2 million
  
  
  
  
• Free cash flow⁽⁵⁾ of $379.5 million
  
  
  
  
• $111.0 million of total cash dividends paid through September 30, 2025
  
  
  
  
• $8.4 million of common stock repurchases through September 30, 2025

“This quarter’s results demonstrate the power of TPL’s unique business model and active management,” said Tyler Glover, Chief Executive Officer of the Company. “Record quarterly revenues and net income for our Water Services and Operations segment are the product of our past investments, ongoing commercial efforts, and strategic acquisitions since its inception in 2017. Oil and gas royalty production also reached a quarterly record. Despite the ongoing weakness with broader commodity prices, we have leveraged our considerable competitive advantages to achieve record performance across nearly every major key performance indicator. Furthermore, we are opportunistically harnessing our resilient business, high cash flow margins, and fortress balance sheet to consolidate high-quality Permian royalties, surface, and water assets. The acquired assets announced today fit seamlessly into the broader TPL portfolio. Our business model is designed to succeed throughout the commodity cycle without the need for hedging, thus preserving considerable incremental upside for TPL when the industry macro environment eventually improves.”

Financial Results for the Third Quarter of 2025 - Sequential

The Company reported net income of $121.2 million for the third quarter of 2025 compared to net income of $116.1 million for the second quarter of 2025.

Total revenues for the third quarter of 2025 were $203.1 million compared to $187.5 million for the second quarter of 2025. The increase in total revenues was primarily due to a $19.0 million increase in water sales and a $13.7 million increase in oil and gas royalty revenue, partially offset by a $19.5 million decrease in easements and other surface-related income compared to the second quarter of 2025. The Company’s share of production was 36.3 thousand Boe per day for the third quarter of 2025 compared to 33.2 thousand Boe per day for the second quarter of 2025, and the Company’s average realized price was $34.10 per Boe in the third quarter of 2025 compared to $32.94 per Boe in the second 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 $54.0 million for the third quarter of 2025 compared to $43.8 million for the second quarter of 2025. The increase in operating expenses was principally related to an $8.0 million increase in water service-related expenses during the third quarter of 2025 compared to the second quarter of 2025.

Financial Results for the Nine Months Ended September 30, 2025 - Year Over Year

The Company reported net income of $358.0 million for the nine months ended September 30, 2025 compared to net income of $335.6 million for the nine months ended September 30, 2024.

Total revenues for the nine months ended September 30, 2025 were $586.6 million compared to $520.0 million for the nine months ended September 30, 2024. The increase in total revenues was primarily due to a $38.6 million increase in oil and gas royalty revenue, a $19.7 million increase in easements and other surface-related income, and a $14.7 million increase in produced water royalties. The Company’s share of production was 33.6 thousand Boe per day for the nine months ended September 30, 2025 compared to 26.0 thousand Boe per day for the same period of 2024, and the average realized price was $36.01 per Boe for the nine months ended September 30, 2025 compared to $40.60 per Boe for the same period of 2024. Easements and other surface-related income increased principally due to an increase of $12.1 million in pipeline easements, $3.0 million in wellbore easements and $2.0 million in commercial leases. Produced water royalties increased principally due to increased produced water volumes. TPL’s revenue streams are directly impacted by commodity prices and development and operating decisions made by its customers.

Total operating expenses were $143.7 million for the nine months ended September 30, 2025 compared to $123.4 million for the same period of 2024. The increase in operating expenses was principally related to a $23.2 million increase in depletion expense associated with oil and gas royalty interests acquired during the second half of 2024.

Credit Facility

On October 23, 2025, the Company entered into a credit agreement that provides for a new $500 million revolving credit facility (the “Credit Facility”). The Credit Facility bears interest at a per annum rate equal to the Secured Overnight Financing Rate (“SOFR”) plus 2.25% to 2.50% based on TPL’s debt-to-EBITDA leverage ratio. The Credit Facility has a $250 million accordion exercisable if new or existing lenders agree to provide or increase their commitments. The Credit Facility is initially unsecured with a springing security interest if the total debt-to-EBITDA leverage ratio exceeds 2.50 to 1.0. The Credit Facility matures on October 23, 2029, and contains customary financial and other affirmative covenants, negative covenants, and events of default. The Credit Facility remains undrawn as of November 5, 2025.

Royalty Interest Acquisition

On November 3, 2025, the Company acquired approximately 17,306 net royalty acres (standardized to 1/8th) located primarily in the Midland basin in Martin, Howard, Midland, and other counties, for an aggregate purchase price of $474.1 million (“the Royalty Interests Acquisition”) in an all-cash transaction. Approximately 70% of the acquired acreage interest are adjacent to or overlapping drilling spacing units that the Company already owns an interest in. Approximately 61% of the royalty acreage is operated by Exxon Mobil Corporation (NYSE: XOM), Diamondback Energy, Inc. (NASDAQ: FANG), and Occidental Petroleum Corporation (NYSE: OXY). The Royalty Interests Acquisition currently produces more than 3,700 Boe per day (approximately 80% oil and natural gas liquids), and the Company expects to generate a double-digit pre-tax cash flow yield at realized oil and natural gas prices of approximately $60 per barrel and $2 per thousand cubic feet (mcf), respectively. The final purchase price and acreage interests are subject to customary closing conditions and adjustments.

Quarterly Dividend Declared

On November 3, 2025, the Board declared a quarterly cash dividend of $1.60 per share, payable on December 15, 2025 to stockholders of record at the close of business on December 1, 2025.

Proposed Stock Split

On November 3, 2025, our Board approved a three-for-one stock split of the Company’s common stock. The stock split is expected to be completed in December 2025, subject to finalization of the effective date as determined by the Board.

The stock split had not yet been effected as of September 30, 2025, and accordingly, the accompanying financial statements and per-share data do not reflect the impact of the stock split. The stock split will be reflected in future financial statements following its effective date. The Board has approved the stock split, subject to there not being any material changes in the Company’s financial condition or results of operations or the market price for the common stock that would cause the Board to change its view on the desirability of effecting the stock split.

Conference Call and Webcast Information

The Company will hold a conference call on Thursday, November 6, 2025 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# 13753282. The telephone replay will be available starting shortly after the call through November 20, 2025.

About Texas Pacific Land Corporation

Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 882,000 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 provides 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 anticipated benefits of recent acquisitions or 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.

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 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 Named Executive Officers on an annual basis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation.

The purpose of presenting free cash flow is to provide investors a metric to measure 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 Named Executive Officers. To calculate free cash flow, net income is adjusted by the same items discussed above for EBITDA and Adjusted EBITDA and then further adjusted by deducting current income tax expense and purchases of fixed assets.

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 Named 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, 2025 and June 30, 2025 and for the nine months ended September 30, 2025 and September 30, 2024 (in thousands):

The following table presents a reconciliation of net income to free cash flow for the three months ended September 30, 2025 and June 30, 2025 and for the nine months ended September 30, 2025 and September 30, 2024 (in thousands):

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