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Texas Pacific Land reported latest-quarter revenue of $273.4 million, up from $203.1 million a year earlier, and diluted earnings per share of $2.43, compared with $1.76. For the preceding quarter, the company reported adjusted earnings per share of $2.23 against a consensus estimate of $2.14, while revenue of $246.1 million exceeded the consensus estimate of $243.0 million.
In its filing, Texas Pacific Land attributed higher oil and gas royalty revenue to increased production and realized prices. The company also reported higher land-related easement income, principally from pipeline and power line agreements. Produced water royalties rose as volumes increased, while water sales fell because both pricing and volumes declined.
Texas Pacific Land reported an operating margin of 76.0%, compared with 73.4% a year earlier, and free cash flow of $192.4 million, compared with $104.6 million. The filing shows that operating expenses increased, including depreciation and depletion associated with acquired royalty interests.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $273.4 million | $203.1 million | 34.6% |
| Diluted EPS | $2.43 | $1.76 | 38.3% |
| Gross margin | 100.0% | 100.0% | 0.0 percentage points |
| Operating margin | 76.0% | 73.4% | 2.6 percentage points |
| Free cash flow | $192.4 million | $104.6 million | 84.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.23 | $2.14 | Beat by 4.21% |
| Revenue | $246.1 million | $243.0 million | Beat by 1.26% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Texas Pacific Land’s latest earnings call transcript is not available for review.
Guidance
Texas Pacific Land’s management guidance is not available for review, so a comparison with its prior outlook cannot be made. In its filing, the company said the effect on oil prices for the balance of the year and beyond is uncertain.