Texas Pacific Land Corp
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
TPL$272.36+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001811074-25-000077
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001811074-25-000096
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 98 current paragraphs.
38 unchanged; 42 reworded; 13 added; 4 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 6 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Acquisition Activity
Current report
In September 2025, we acquired approximately 8,147 acres of land in Martin, County Texas for an aggregate purchase price, inclusive of closing costs, of $31.4 million in an all-cash transaction.
Current report
On November 3, 2025, we acquired approximately 17,306 NRA located primarily in the Midland basin in Martin, Howard, Midland, and other counties for an aggregate purchase price of $474.1 million. A deposit for the acquisition of $71.1 million was held in escrow as of September 30, 2025. The final purchase price and acreage interests are subject to customary closing conditions and adjustments.
Current report
Revolving Credit Facility
Current report
On October 23, 2025, the Company entered into a credit agreement among the Company, as the borrower, Wells Fargo Bank, National Association, as administrative agent and an L/C issuer (the “Administrative Agent”), and the other lenders from time to time party thereto (collectively with the Administrative Agent in its capacity as a lender, the “Lenders”), which provides for a revolving credit facility (the “Credit Facility”) in the aggregate principal amount of up to $500.0 million, and the ability to request potential increases in the commitments of the lenders of up to an additional $250.0 million; provided that any such request for an increase must be in a minimum amount of $50.0 million or, if less, the amount remaining available for all such increases. The Credit Facility and all borrowings thereunder will mature on October 23, 2029.
Current report
The borrowings under the Credit Facility will bear interest at a rate per annum (i) for each SOFR loan, equal to term SOFR for such interest period plus (x) 2.25% if the Company’s consolidated total leverage ratio is less than or equal to 2.0 to 1.0 or (y) 2.50% if the Company’s consolidated total leverage ratio is greater than 2.0 to 1.0 or (ii) for each base rate loan, equal to the base rate plus (x) 1.25% if the Company’s consolidated total leverage ratio is less than or equal to 2.0 to 1.0 or (y) 1.50% if the Company’s consolidated total leverage ratio is greater than 2.0 to 1.0. The base rate for any day is a fluctuating rate per annum equal to the highest of (a) the federal funds rate plus 1/2 of 1%, (b) the rate of interest per annum publicly announced by the Administrative Agent as its prime rate, and (c) term SOFR for a one-month tenor in effect on such day plus 1.00%. The Company is also required to pay customary letter of credit fees.
Current report
We intend to draw on the facility primarily for capital expenditures, ongoing working capital, acquisitions and general corporate purposes. Borrowings under the Credit Facility will be unsecured with a springing security interest in substantially all equity securities of the Company’s subsidiaries in the event the Company’s consolidated total leverage ratio exceeds 2.50 to 1.0. The Credit Facility also contains customary financial and other affirmative and negative covenants.
Current report
The events of default under the Credit Agreement include, among others, payment defaults, breaches of covenants, defaults under the related loan documents, material misrepresentations, cross defaults with certain other material indebtedness, bankruptcy and insolvency events, judgment defaults, certain events related to plans subject to the Employee Retirement Income Security Act of 1974, as amended, invalidity of the Credit Agreement or the related loan documents and change in control events. The occurrence of an event of default could result in the termination of commitments and letter of credit extensions, the acceleration of the Company’s obligations under the Credit Agreement, the requirement to post cash collateral with respect to letters of credit and the exercise of the Lenders of all rights and remedies under the Credit Agreement.
Current report
For the Nine Months Ended September 30, 2025 as Compared to the Nine Months Ended September 30, 2024
Current report
Other income, net. Other income, net was $4.8 million for the three months ended September 30, 2025 compared to $6.4 million for the same period of 2024. Lower cash balances and investment yields during the three months ended September 30, 2025 compared to the same period of 2024 resulted in a decrease in interest income.
Current report
For the Nine Months Ended September 30, 2025 as Compared to the Nine Months Ended September 30, 2024
Current report
Other income, net. Other income, net was $3.3 million for the nine months ended September 30, 2025 compared to $5.9 million for the same period of 2024. Lower cash balances and investment yields during the nine months ended September 30, 2025 compared to the same period of 2024 resulted in a decrease in interest income.
Current report
The purpose of presenting free cash flow is to provide investors a metric to measure the 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.
Removed paragraphs (4)
Previous report
For the Six Months Ended June 30, 2025 as Compared to the Six Months Ended June 30, 2024
Previous report
Other income, net. Other income, net was $1.1 million for the three months ended June 30, 2025 compared to $2.2 million for the same period of 2024. Lower cash balances during the three months ended June 30, 2025 compared to the same period of 2024 resulted in a decrease in interest income.
Previous report
For the Six Months Ended June 30, 2025 as Compared to the Six Months Ended June 30, 2024
Previous report
Other income, net. Other income, net was $2.0 million for the six months ended June 30, 2025 compared to $4.2 million for the same period of 2024. Lower cash balances during the six months ended June 30, 2025 compared to the same period of 2024 resulted in a decrease in interest income.
Reworded paragraphs (42)
Previous wording
Statements in this Quarterly Report on Form 10-Q (this “Quarterly Report”) that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements regarding management’s expectations, hopes, intentions or strategies regarding the future. Words or phrases such as “expects” and “believes” or similar expressions or the negative of such terms, when used in this Quarterly Report or other filings with the Securities and Exchange Commission (the “SEC”), are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company’s future operations and prospects, the markets for real estate in the areas in which the Company owns real estate, applicable zoning regulations, the markets for oil and gas including actions of other oil and gas producers or consortiums worldwide such as the Organization of Petroleum Exporting Countries (“OPEC”) and Russia (collectively referred to as “OPEC+”), expected competition, management’s intent, beliefs or current expectations with respect to the Company’s future financial performance and other matters. All forward-looking statements in this Quarterly Report are based on information available to us, and speak only, as of the date this Quarterly Report is filed with the SEC, and we assume no responsibility to update any such forward-looking statements, except as required by law. All forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), and in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Part II, Item 1A. “Risk Factors” of this Quarterly Report.
Current wording
Statements in this Quarterly Report on Form 10-Q (this “Quarterly Report”) that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements regarding management’s expectations, hopes, intentions or strategies regarding the future. Words or phrases such as “expects,” “anticipates,” “could,” “will,” “intends,” “may,” “might,” “plan,” “potential,” “should,” “would,” “believes” or similar expressions or the negative of such terms, when used in this Quarterly Report or other filings with the Securities and Exchange Commission (the “SEC”), are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company’s future operations and prospects, the markets for real estate in the areas in which the Company owns real estate, applicable zoning regulations, the markets for oil and gas including actions of other oil and gas producers or consortiums worldwide such as the Organization of Petroleum Exporting Countries (“OPEC”) and Russia (collectively referred to as “OPEC+”), expected competition, management’s intent, beliefs or current expectations with respect to the Company’s future financial performance and other matters. All forward-looking statements in this Quarterly Report are based on information available to us, and speak only, as of the date this Quarterly Report is filed with the SEC, and we assume no responsibility to update any such forward-looking statements, except as required by law. All forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), and in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Part II, Item 1A. “Risk Factors” of this Quarterly Report.
Previous wording
Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as “TPL”, the “Company”, “our”, “we” or “us”) is a Delaware corporation and one of the largest landowners in the State of Texas with approximately 874,000 surface acres of land, principally concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and gas royalty interest (“NPRI”) under approximately 85,000 acres of land, a 1/16th NPRI under approximately 371,000 acres of land, and approximately 16,000 additional net royalty acres (normalized to 1/8th) (“NRA”), for a collective total of approximately 207,000 NRA, principally concentrated in the Permian Basin.
Current wording
Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as “TPL”, the “Company”, “our”, “we” or “us”) is a Delaware corporation and one of the largest landowners in the State of Texas with approximately 882,000 surface acres of land, principally concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and gas royalty interest (“NPRI”) under approximately 85,000 acres of land, a 1/16th NPRI under approximately 371,000 acres of land, and approximately 16,000 additional net royalty acres (normalized to 1/8th) (“NRA”), for a collective total of approximately 207,000 NRA, principally concentrated in the Permian Basin.
Previous wording
Average WTI oil prices for the six months ended June 30, 2025 were down approximately 15% compared to average oil prices during the same period last year. Oil prices continue to be impacted by certain actions by OPEC+, geopolitics, and evolving global supply and demand trends, among other factors. In addition, ambiguity around tariffs implemented by and towards the United States has created incremental global economic uncertainty, which has, in part, contributed to relatively weaker oil prices in 2025 to-date. Average Henry Hub natural gas prices during 2025 have increased approximately 74% compared to average prior year natural gas prices. Global and domestic natural gas markets have benefited from improved supply-demand balances, including tailwinds from expanded liquefied natural gas capacity and improved industrial and power demand, among other factors. Since mid-2022, the Waha Hub located in Pecos County, Texas has at times experienced significant negative price differentials relative to Henry Hub, located in Erath, Louisiana, due in part to growing local Permian natural gas production and limited natural gas pipeline takeaway capacity. Midstream infrastructure is currently being developed by operators to provide additional takeaway capacity, though the impact on future basis differentials will be dependent on future natural gas production and other factors. Changes in global and domestic macro-economic conditions could result in additional shifts in oil and gas supply and demand in future periods. Although our revenues are directly and indirectly impacted by changes in oil and natural gas prices, we believe our royalty interests (which require no capital expenditures or operating expense burden from us for well development), strong balance sheet, and liquidity position will help us navigate through potential commodity price volatility.
Current wording
Average WTI oil prices for the nine months ended September 30, 2025 were down approximately 14% compared to average oil prices during the same period last year. Oil prices continue to be impacted by certain actions by OPEC+, geopolitics, and evolving global supply and demand trends, among other factors. In addition, ambiguity around tariffs implemented by and towards the United States has created incremental global economic uncertainty, which has, in part, contributed to relatively weaker oil prices in 2025 to-date. Average Henry Hub natural gas prices during 2025 have increased approximately 64% compared to average prior year natural gas prices. Global and domestic natural gas markets have benefited from improved supply-demand balances, including tailwinds from expanded liquefied natural gas capacity and improved industrial and power demand, among other factors. Since mid-2022, the Waha Hub located in Pecos County, Texas has at times experienced significant negative price differentials relative to Henry Hub, located in Erath, Louisiana, due in part to growing local Permian natural gas production and limited natural gas pipeline takeaway capacity. Midstream infrastructure is currently being developed by operators to provide additional takeaway capacity, though the impact on future basis differentials will be dependent on future natural gas production and other factors. Changes in global and domestic macro-economic conditions could result in additional shifts in oil and gas supply and demand in future periods. Although our revenues are directly and indirectly impacted by oil and natural gas prices, we believe our royalty interests (which require no capital expenditures or operating expense burden from us for well development), strong balance sheet, and liquidity position will help us navigate through potential commodity price volatility.
Previous wording
The Permian Basin is one of the oldest and most well-known hydrocarbon-producing areas and currently accounts for a substantial portion of oil and gas production in the United States, covering approximately 86,000 square miles across southeastern New Mexico and western Texas. Exploration and production (“E&P”) companies operating in the Permian Basin continue to maintain robust drilling and development activity. Per the U.S. Energy Information Administration, Permian production is currently in excess of 6.5 million barrels per day, which is higher than the average daily production in this region for any year prior to 2025.
Current wording
The Permian Basin is one of the oldest and most well-known hydrocarbon-producing areas and currently accounts for a substantial portion of oil and gas production in the United States, covering approximately 86,000 square miles across southeastern New Mexico and western Texas. Exploration and production (“E&P”) companies operating in the Permian Basin continue to maintain robust drilling and development activity. Per the U.S. Energy Information Administration, Permian production is currently in excess of 6.6 million barrels per day, which is higher than the average daily production in this region for any year prior to 2025.
Previous wording
Due to our ownership concentration in the Permian Basin, our revenues are directly impacted by oil and gas pricing and drilling activity in the Permian Basin. Below are metrics for the three and six months ended June 30, 2025 and 2024:
Current wording
Due to our ownership concentration in the Permian Basin, our revenues are directly impacted by oil and gas pricing and drilling activity in the Permian Basin. Below are metrics for the three and nine months ended September 30, 2025 and 2024:
Previous wording
The metrics above show selected domestic benchmark oil and natural gas prices and approximate activity levels in the Permian Basin for the three and six months ended June 30, 2025 and 2024. While average oil prices for the six months ended June 30, 2025 decreased compared to the same period in 2024, average Henry Hub and Waha natural gas prices for the six months ended June 30, 2025 increased compared to the same period in 2024. E&P companies broadly have continued to deploy capital at a measured pace as drilling and development activities across the Permian Basin have remained strong overall. As we are a significant landowner in the Permian Basin and not an oil and gas producer, our revenue is affected by the development decisions made by companies that operate in the areas where we own royalty interests and land. Accordingly, these decisions made by others affect, both directly and indirectly, our oil and gas royalties, produced water royalties, water sales, and other surface-related income.
Current wording
The metrics above show selected domestic benchmark oil and natural gas prices and approximate activity levels in the Permian Basin for the three and nine months ended September 30, 2025 and 2024. While average oil prices for the nine months ended September 30, 2025 decreased compared to the same period in 2024, average Henry Hub and Waha natural gas prices for the nine months ended September 30, 2025 increased compared to the same period in 2024. E&P companies broadly have continued to deploy capital towards drilling and development activities in the Permian Basin at a measured pace. As we are a significant landowner in the Permian Basin and not an oil and gas producer, our revenue is affected by the development decisions made by companies that operate in the areas where we own royalty interests and land. Accordingly, these decisions made by others affect, both directly and indirectly, our oil and gas royalties, produced water royalties, water sales, and other surface-related income.
Previous wording
Our principal sources of liquidity are cash and cash flows generated from our operations. Our primary liquidity and capital requirements are for capital expenditures related to our Water Services and Operations segment (the extent and timing of which are under our control), working capital and general corporate needs.
Current wording
Our principal sources of liquidity are cash and cash flows generated from our operations and a revolving credit facility, which closed on October 23, 2025. Our primary liquidity and capital requirements are for acquisitions, capital expenditures related to our Water Services and Operations segment, working capital and general business needs.
Previous wording
We continuously review our levels of liquidity and capital resources. If market conditions were to change and our revenues were to decline significantly or our operating costs were to increase significantly, our cash flows and liquidity could be reduced. Should this occur, we could seek alternative sources of funding. We had no debt, credit facilities or any off-balance sheet arrangements as of June 30, 2025.
Current wording
We continuously review our levels of liquidity and capital resources. If market conditions were to change and our revenues were to decline significantly or our operating costs were to increase significantly, our cash flows and liquidity could be reduced. Should this occur, we could seek alternative sources of funding. As of September 30, 2025, we had no debt or any off-balance sheet arrangements.
Previous wording
As we evaluate our current capital structure, capital allocation priorities, business fundamentals, and investment opportunities, we have set a target cash and cash equivalents balance of approximately $700 million. Above this target, we will seek to deploy the majority of our free cash flow towards returning capital to our stockholders in the form of special dividends and share repurchases. As of June 30, 2025, we had cash and cash equivalents of $543.9 million that we expect to utilize, along with cash flow from operations, to provide capital to support our business, to pay regular dividends subject to the discretion of our board of directors (the “Board”), to, subject to market conditions, repurchase shares of our common stock, par value $0.01 per share (the “Common Stock”), for potential acquisitions and for general corporate purposes. We believe that cash from operations, together with our cash and cash equivalents balances, will be sufficient to meet ongoing capital expenditures, working capital requirements and other cash needs for at least the next 12 months.
Current wording
As we evaluate our current capital structure, capital allocation priorities, business fundamentals, and investment opportunities, we have set a target cash and cash equivalents balance of approximately $700 million. Above this target, we will seek to deploy the majority of our free cash flow towards returning capital to our stockholders in the form of special dividends and share repurchases. As of September 30, 2025, we had cash and cash equivalents of $531.8 million that we expect to utilize, along with cash flow from operations, to provide capital to support our business, to pay regular dividends subject to the discretion of our board of directors (the “Board”), to, subject to market conditions, repurchase shares of our common stock, par value $0.01 per share (the “Common Stock”), for potential acquisitions and for general corporate purposes.
Previous wording
During the six months ended June 30, 2025, we paid $74.2 million in dividends to our stockholders. There were no repurchases of shares of our Common Stock during six months ended June 30, 2025.
Current wording
During the nine months ended September 30, 2025, we paid $111.0 million in dividends to our stockholders. In addition, during nine months ended September 30, 2025, we repurchased $8.4 million of our Common Stock (including share repurchases not settled at the end of the period).
Previous wording
In 2024, we announced our progress towards developing a patented, energy-efficient, desalination and treatment process and associated equipment that can recycle produced water into fresh water with quality standards appropriate for surface discharge and beneficial reuse. With the Permian generating over 20 million barrels of produced water per day, this technology provides an attractive and critical alternative to subsurface injection. We have begun construction of our facility, which will have an initial capacity of 10,000 barrels of water per day, with expected construction completion later in 2025. Cumulatively through June 30, 2025, we have spent $15.7 million ($3.8 million during the six months ended June 30, 2025) on this new energy-efficient desalination and treatment process and equipment, of which $10.2 million has been capitalized as of June 30, 2025.
Current wording
In 2024, we announced our progress towards developing a patented, energy-efficient, desalination and treatment process and associated equipment that can recycle produced water into fresh water with quality standards appropriate for surface discharge and beneficial reuse. With the Permian Basin generating over 20 million barrels of produced water per day, this technology provides an attractive and critical alternative to subsurface injection. We have begun construction of our facility, which will have an initial capacity of 10,000 barrels of water per day, with estimated service date by the end of 2025. Cumulatively through September 30, 2025, we have spent $24.0 million ($12.1 million during the nine months ended September 30, 2025) on this new energy-efficient desalination and treatment process and equipment, of which $18.0 million has been capitalized as of September 30, 2025.
Previous wording
Additionally, during the six months ended June 30, 2025, we invested approximately $11.3 million to maintain and/or enhance our water sourcing assets.
Current wording
Additionally, during the nine months ended September 30, 2025, we invested approximately $14.1 million to enhance our water sourcing assets.
Previous wording
For the six months ended June 30, 2025 and 2024, cash provided by operating activities was $277.6 million and $245.5 million, respectively. Our cash flow provided by operating activities is primarily from oil, gas and produced water royalties, water and land sales, easements, and other surface-related income. Cash flows used in operations generally consist of operating expenses associated with our revenue streams, general and administrative expenses and income taxes.
Current wording
For the nine months ended September 30, 2025 and 2024, cash provided by operating activities was $432.2 million and $364.1 million, respectively. Our cash flow provided by operating activities is primarily from oil, gas and produced water royalties, water and land sales, easements, and other surface-related income. Cash flows used in operations generally consist of operating expenses associated with our revenue streams, general and administrative expenses and income taxes.
Previous wording
The increase in cash flows provided by operating activities for the six months ended June 30, 2025 compared to the same period of 2024 was primarily driven by an increase in operating income and changes in working capital requirements during 2025 as compared to 2024.
Current wording
The increase in cash flows provided by operating activities for the nine months ended September 30, 2025 compared to the same period of 2024 was primarily driven by an increase in operating income and changes in working capital requirements during 2025 as compared to 2024.
Previous wording
For the six months ended June 30, 2025 and 2024, cash used in investing activities was $16.5 million and $9.6 million, respectively. Our cash flows used in investing activities are primarily related to acquisitions and capital expenditures related to our Water Services and Operations segment. Our acquisitions may include land, royalty interests and other similar tangible and intangible assets.
Current wording
For the nine months ended September 30, 2025 and 2024, cash used in investing activities was $137.6 million and $225.8 million, respectively. Our cash flows used in investing activities are primarily related to acquisitions and purchases of fixed assets primarily related to our Water Services and Operations segment. Our acquisitions may include land, royalty interests and other similar tangible and intangible assets.
Previous wording
Capital expenditures for the six months ended June 30, 2025 increased $3.7 million compared to the same period of 2024 principally related to increased capital expenditures to maintain and enhance our water sourcing assets. Acquisitions of land totaled $4.5 million and $1.0 million for the six months ended June 30, 2025 and 2024, respectively. For further information regarding acquisitions of land, see Note 5, “Real Estate Activity” in the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q. We acquired royalty interests for $3.5 million, net of post-close adjustments, during the six months ended June 30, 2025. This activity was offset by a $3.9 million post-close adjustment from the seller of oil and gas interests we acquired in 2024 related to curative title defects.
Current wording
For the nine months ended September 30, 2025 and 2024, the cash flows used for acquisitions totaled $110.6 million, including a deposit for an acquisition, and $209.3 million, respectively. For further information regarding acquisitions of royalty interests and acquisitions of land, see Note 4, “Oil and Gas Royalty Interests” and Note 5, “Real Estate Activity,” respectively, in the notes to the condensed consolidated financial statements in this Quarterly Report. Purchases of fixed assets for the nine months ended September 30, 2025 increased $14.4 million compared to the same period of 2024 principally related to increased fixed asset purchases to maintain and enhance our water sourcing assets and office tenant improvements. This activity was partially offset by a $3.9 million post-close adjustment from the seller of oil and gas interests we acquired in 2024 related to curative title defects.
Previous wording
For the six months ended June 30, 2025 and 2024, cash used in financing activities was $88.6 million and $71.7 million, respectively. Our cash flows used in financing activities primarily consist of activities that return capital to our stockholders, such as payments of dividends and repurchases of our Common Stock.
Current wording
For the nine months ended September 30, 2025 and 2024, cash used in financing activities was $134.2 million and $335.0 million, respectively. Our cash flows used in financing activities primarily consist of activities that return capital to our stockholders, such as payments of dividends and repurchases of our Common Stock.
Previous wording
During the six months ended June 30, 2025 and 2024, we paid total dividends of $74.2 million and $53.8 million, respectively. During the six months ended June 30, 2025, employees surrendered $14.3 million in shares to the Company to settle tax withholdings related to stock vesting. We had no repurchases of our Common Stock during the six months ended June 30, 2025. During the six months ended June 30, 2024, we repurchased $16.6 million shares of our Common Stock (including share repurchases not settled at the end of the period).
Current wording
During the nine months ended September 30, 2025 and 2024, we paid total dividends of $111.0 million and $310.6 million, respectively. During the nine months ended September 30, 2025 and 2024, employees surrendered $14.8 million and $1.6 million in shares, respectively, to the Company to settle tax withholdings related to stock vesting. During the nine months ended September 30, 2025 and 2024, we repurchased $8.4 million and $22.8 million shares, respectively, of our Common Stock (including share repurchases not settled at the end of the period).
Previous wording
The following tables show our consolidated results of operations and our results of operations by reportable segment for Land and Resource Management (“LRM”) and Water Service and Operations (“WSO”) for the three and six months ended June 30, 2025 and 2024 (in thousands):
Current wording
The following tables show our consolidated results of operations and our results of operations by reportable segment for Land and Resource Management (“LRM”) and Water Service and Operations (“WSO”) for the three and nine months ended September 30, 2025 and 2024 (in thousands):
Previous wording
Total revenues were $187.5 million for the three months ended June 30, 2025 compared to $172.3 million for the three months ended June 30, 2024. Total operating expenses were $43.8 million for the three months ended June 30, 2025 compared to $39.1 million for the three months ended June 30, 2024. Net income was $116.1 million for the three months ended June 30, 2025 compared to $114.6 million for the same period of 2024. Individual revenue and expense line items are discussed below under “Segment Results of Operations.”
Current wording
Total revenues were $203.1 million for the three months ended September 30, 2025 compared to $173.6 million for the three months ended September 30, 2024. Total operating expenses were $54.0 million for the three months ended September 30, 2025 compared to $46.2 million for the three months ended September 30, 2024. Net income was $121.2 million for the three months ended September 30, 2025 compared to $106.6 million for the three months ended September 30, 2024. Individual revenue and expense line items are discussed below under “Segment Results of Operations.”
Previous wording
Total revenues were $383.5 million for the six months ended June 30, 2025 compared to $346.5 million for the six months ended June 30, 2024. Total operating expenses were $89.7 million for the six months ended June 30, 2025 compared to $77.2 million for the six months ended June 30, 2024. Net income was $236.8 million for the six months ended June 30, 2025 compared to $229.0 million for the same period of 2024. Individual revenue and expense line items are discussed below under “Segment Results of Operations.”
Current wording
Total revenues were $586.6 million for the nine months ended September 30, 2025 compared to $520.0 million for the nine months ended September 30, 2024. Total operating expenses were $143.7 million for the nine months ended September 30, 2025 compared to $123.4 million for the nine months ended September 30, 2024. Net income was $358.0 million for the nine months ended September 30, 2025 compared to $335.6 million for the three months ended September 30, 2024. Individual revenue and expense line items are discussed below under “Segment Results of Operations.”
Previous wording
We operate our business in two reportable segments: Land and Resource Management (“LRM”) and Water Services and Operations (“WSO”). We eliminate any inter-segment revenues and expenses upon consolidation.
Current wording
We operate our business in two reportable segments: Land and Resource Management and Water Services and Operations. We eliminate any inter-segment revenues and expenses upon consolidation.
Previous wording
Oil and gas royalties. Oil and gas royalty revenue was $95.0 million for the three months ended June 30, 2025 compared to $89.8 million for the three months ended June 30, 2024. Our share of production increased to 33.2 thousand barrels of oil equivalent (“Boe”) per day for the three months ended June 30, 2025 compared to 24.9 thousand Boe per day for the same period of 2024. The average realized price decreased 20.5% to $32.94 per Boe for the three months ended June 30, 2025 from $41.44 per Boe for the three months ended June 30, 2024.
Current wording
Oil and gas royalties. Oil and gas royalty revenue was $108.7 million for the three months ended September 30, 2025 compared to $94.4 million for the three months ended September 30, 2024, an increase of $14.3 million. Our share of production increased to 36.3 thousand barrels of oil equivalent (“Boe”) per day for the three months ended September 30, 2025 compared to 28.3 thousand Boe per day for the same period of 2024. The average realized price decreased 10.4% to $34.10 per Boe for the three months ended September 30, 2025 from $38.04 per Boe for the three months ended September 30, 2024.
Previous wording
Easements and other surface-related income. Easements and other surface-related income was $33.5 million for the three months ended June 30, 2025, an increase of $19.3 million compared to $14.2 million for the three months ended June 30, 2024. Easements and other surface-related income includes revenue related to the use and crossing of our land for oil and gas E&P, renewable energy, and agricultural operations. The increase in easements and other surface-related income was principally related to increases of $15.7 million in pipeline easements, $1.9 million in wellbore easements and $1.1 million in commercial leases for the three months ended June 30, 2025 compared to the same period of 2024. The amount of income derived from pipeline easements is a function of the term of the easement, the size of the easement, and the number of easements entered into for any given period. Easements and other surface-related income is dependent on development decisions made by companies that operate in the areas where we own land and is, therefore, unpredictable and may vary significantly from period to period. See “Market Conditions” and “Permian Basin Activity” above for additional discussion of development activity in the Permian Basin during the three months ended June 30, 2025.
Current wording
Easements and other surface-related income. Easements and other surface-related income was $12.7 million for the three months ended September 30, 2025, compared to $11.3 million for the three months ended September 30, 2024. Easements and other surface-related income includes revenue related to the use and crossing of our land for oil and gas E&P, renewable energy, and agricultural operations. The increase in easements and other surface-related income was principally related to increases of $1.6 million in pipeline easements for the three months ended September 30, 2025 compared to the same period of 2024. The amount of income derived from pipeline easements is a function of the term of the easement, the size of the easement, and the number of easements entered into for any given period. Easements and other surface-related income is dependent on development decisions made by companies that operate in the areas where we own land and is, therefore, unpredictable and may vary significantly from period to period. See “Market Conditions” and “Permian Basin Activity” above for additional discussion of development activity in the Permian Basin during the three months ended September 30, 2025.
Previous wording
General and administrative expenses. General and administrative expenses were $7.0 million for the six months ended June 30, 2025 compared to $10.7 million for the comparable period of 2024. The decrease was primarily due to a decrease in legal expenses of $3.5 million over the same time period.
Current wording
General and administrative expenses. General and administrative expenses were $3.4 million for the three months ended September 30, 2025 compared to $10.4 million for the comparable period of 2024. The decrease was primarily due to a decrease in legal and professional fees of $7.0 million over the same time period.
Previous wording
Depreciation, depletion and amortization. Depreciation, depletion and amortization was $9.1 million for the three months ended June 30, 2025 compared to $0.8 million for the comparable period of 2024. The increase was principally due to depletion expense associated with royalty interests acquired during the second half of 2024.
Current wording
Depreciation, depletion and amortization. Depreciation, depletion and amortization was $10.5 million for the three months ended September 30, 2025 compared to $2.1 million for the comparable period of 2024. The increase was principally due to depletion expense associated with royalty interests acquired during the second half of 2024.
Previous wording
Water sales. Water sales revenue decreased $15.1 million to $25.6 million for the three months ended June 30, 2025, compared to $40.7 million for the same period of 2024. The decrease in water sales was principally due to a decrease of 39.7% in water sales volumes for the three months ended June 30, 2025, compared to the same period of 2024. Water sales volumes are dependent upon customer demand in the areas in which we provide water to customers and may fluctuate from period to period.
Current wording
Water sales. Water sales revenue increased $8.4 million to $44.6 million for the three months ended September 30, 2025, compared to $36.2 million for the same period of 2024. The increase in water sales was principally due to a 14.3% increase in pricing for the three months ended September 30, 2025, compared to the same period of 2024. Water sales volumes are dependent upon customer demand in the areas in which we provide water to customers and may fluctuate from period to period.
Previous wording
Produced water royalties. Produced water royalties are received from the transfer or disposal of produced water on our land and are contractual and not paid as a matter of right. Produced water royalties are also fee based and not directly impacted by lower commodity prices. However, indirectly, volumes may vary from period to period depending upon development activity levels and operator decisions involving recycling versus disposal of produced water. We do not operate any saltwater disposal wells. Produced water royalties increased to $30.7 million for the three months ended June 30, 2025 compared to $25.3 million for the same period in 2024. This increase was principally due to increased produced water volumes for the three months ended June 30, 2025 compared to the same period of 2024.
Current wording
Produced water royalties. Produced water royalties are received from the transfer or disposal of produced water on our land and are contractual and not paid as a matter of right. Produced water royalties are also fee based and not directly impacted by lower commodity prices. However, indirectly, volumes may vary from period to period depending upon development activity levels and operator decisions involving recycling versus disposal of produced water. We do not operate any saltwater disposal wells. Produced water royalties increased to $32.3 million for the three months ended September 30, 2025 compared to $27.7 million for the same period in 2024. This increase was principally due to increased produced water volumes for the three months ended September 30, 2025 compared to the same period of 2024.
Previous wording
Water service-related expenses. Water service-related expenses decreased $6.4 million to $8.5 million for the three months ended June 30, 2025 compared to the same period of 2024. Certain types of water-related expenses, including, but not limited to, treatment, transfer, water purchases, repairs and maintenance, equipment rental, and fuel costs, vary from period to period as our customers’ needs and requirements change. Right of way and other expenses also vary from period to period depending upon location of customer delivery. The decrease in water service-related expenses for the three months ended June 30, 2025 compared to the same period of 2024 was principally related to a 39.7% decrease in water sales volumes.
Current wording
Water service-related expenses. Water service-related expenses increased $4.7 million to $16.4 million for the three months ended September 30, 2025 compared to the same period of 2024. Certain types of water-related expenses, including, but not limited to, treatment, transfer, water purchases, repairs and maintenance, equipment rental, and fuel costs, vary from period to period as our customers’ needs and requirements change. Right of way and other expenses also vary from period to period depending upon location of customer delivery. The increase in water service-related expenses for the three months ended September 30, 2025 compared to the same period of 2024 was principally related to a $2.5 million increase in right of way expenses and expenses associated with customer delivery.
Previous wording
Depreciation, depletion and amortization. Depreciation, depletion and amortization was $4.6 million for the three months ended June 30, 2025 compared to $3.3 million for the comparable period of 2024. The increase was principally due to depreciation expense related to new water service-related assets placed in service.
Current wording
Depreciation, depletion and amortization. Depreciation, depletion and amortization was $4.5 million for the three months ended September 30, 2025 compared to $3.6 million for the comparable period of 2024. The increase was principally due to depreciation expense related to new water service-related assets placed in service.
Previous wording
Oil and gas royalties. Oil and gas royalty revenue was $206.3 million for the six months ended June 30, 2025 compared to $181.9 million for the six months ended June 30, 2024, an increase of $24.3 million. Our share of production increased to 32.2 thousand Boe per day for the six months ended June 30, 2025 compared to 24.9 thousand Boe per day for the same period of 2024. The average realized price decreased 11.8% to $37.10 per Boe for the six months ended June 30, 2025 from $42.07 per Boe for the same period of 2024.
Current wording
Oil and gas royalties. Oil and gas royalty revenue was $315.0 million for the nine months ended September 30, 2025 compared to $276.4 million for the nine months ended September 30, 2024, an increase of $38.6 million. Our share of production increased to 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. The average realized price decreased 11.3% to $36.01 per Boe for the nine months ended September 30, 2025 from $40.60 per Boe for the same period of 2024.
Previous wording
The financial and operational data by royalty stream is presented in the table below for the six months ended June 30, 2025 and 2024:
Current wording
The financial and operational data by royalty stream is presented in the table below for the nine months ended September 30, 2025 and 2024:
Previous wording
Easements and other surface-related income. Easements and other surface-related income was $48.8 million for the six months ended June 30, 2025, an increase of $16.5 million compared to $32.3 million for the six months ended June 30, 2024. Easements and other surface-related income includes revenue related to the use and crossing of our land for oil and gas E&P, renewable energy, and agricultural operations. The increase in easements and other surface-related income was principally related to increases of $10.6 million in pipeline easements, $2.3 million in wellbore easements and $1.5 million in commercial leases for the six months ended June 30, 2025 compared to the same period of 2024. Easements and other surface-related income is dependent on development decisions made by companies that operate in the areas where we own land and is, therefore, unpredictable and may vary significantly from period to period. See “Market Conditions” and “Permian Basin Activity” above for additional discussion of development activity in the Permian Basin during the six months ended June 30, 2025.
Current wording
Easements and other surface-related income. Easements and other surface-related income was $61.6 million for the nine months ended September 30, 2025, an increase of $17.9 million compared to $43.6 million for the nine months ended September 30, 2024. Easements and other surface-related income includes revenue related to the use and crossing of our land for oil and gas E&P, renewable energy, and agricultural operations. The increase in easements and other surface-related income was principally related to increases of $12.1 million in pipeline easements, $3.0 million in wellbore easements and $2.0 million in commercial leases for the nine months ended September 30, 2025 compared to the same period of 2024. Easements and other surface-related income is dependent on development decisions made by companies that operate in the areas where we own land and is, therefore, unpredictable and may vary significantly from period to period. See “Market Conditions” and “Permian Basin Activity” above for additional discussion of development activity in the Permian Basin during the nine months ended September 30, 2025.
Previous wording
Salaries and related employee expenses. Salaries and related employee expenses, which include not only salaries, equity and non-equity incentive compensation, but also employee benefits and contract labor expense, were $14.4 million for the six months ended June 30, 2025 compared to $12.9 million for the same period of 2024. The increase in salaries and related employee expenses was principally related to market compensation adjustments that take effect annually at the start of a given year.
Current wording
Salaries and related employee expenses. Salaries and related employee expenses, which include not only salaries, equity and non-equity incentive compensation, but also employee benefits and contract labor expense, were $21.7 million for the nine months ended September 30, 2025 compared to $20.1 million for the same period of 2024. The increase in salaries and related employee expenses was principally related to market compensation adjustments that take effect annually at the start of a given year.
Previous wording
Depreciation, depletion and amortization. Depreciation, depletion and amortization was $16.8 million for the six months ended June 30, 2025 compared to $1.5 million for the comparable period of 2024. The increase was principally due to depletion expense associated with royalty interests acquired during the second half of 2024.
Current wording
Depreciation, depletion and amortization. Depreciation, depletion and amortization was $27.3 million for the nine months ended September 30, 2025 compared to $3.6 million for the comparable period of 2024. The increase was principally due to depletion expense associated with royalty interests acquired during the second half of 2024.
Previous wording
Other income, net. Other income, net was $4.2 million for the three months ended June 30, 2025 compared to $11.0 million for the same period of 2024. Lower cash balances during the three months ended June 30, 2025 compared to the same period of 2024 resulted in a decrease in interest income. Additionally, during the three months ended June 30, 2024, we received $1.9 million of proceeds from a settlement with a title company regarding a defect in title to property acquired in a prior year.
Current wording
Other income, net. Other income, net was $12.4 million for the nine months ended September 30, 2025 compared to $25.4 million for the same period of 2024. Lower cash balances and investment yields during the nine months ended September 30, 2025 compared to the same period of 2024 resulted in a decrease in interest income. Additionally, during the nine months ended September 30, 2024, we received $1.9 million of proceeds from a settlement with a title company regarding a defect in title to property acquired in a prior year.
Previous wording
Water sales. Water sales revenue decreased $13.4 million to $64.4 million for the six months ended June 30, 2025 compared to the same period of 2024. The decrease in water sales was principally due to a decrease of 14.9% in water sales volumes for the six months ended June 30, 2025 compared to the same period of 2024. Water sales volumes are dependent upon customer demand in the areas in which we provide water to customers and may fluctuate from period to period.
Current wording
Water sales. Water sales revenue decreased $5.0 million to $109.0 million for the nine months ended September 30, 2025 compared to the same period of 2024. The decrease in water sales was principally due to a decrease of 7.5% in water sales volumes, which was partially offset by an increase in pricing for the nine months ended September 30, 2025 compared to the same period of 2024. Water sales volumes are dependent upon customer demand in the areas in which we provide water to customers and may fluctuate from period to period.
Previous wording
Produced water royalties. Produced water royalties are royalties received from the transfer or disposal of produced water on our land and are contractual and not paid as a matter of right. Produced water royalties are also fee based and not directly impacted by lower commodity prices. However, indirectly, volumes may vary from period to period depending upon development activity levels and operator decisions involving recycling versus disposal of produced water. We do not operate any saltwater disposal wells. Produced water royalties increased to $58.4 million for the six months ended June 30, 2025 compared to $48.3 million for the comparable period of 2024. The increase in produced water royalties was principally due to increased produced water volumes for the six months ended June 30, 2025 compared to the same period of 2024.
Current wording
Produced water royalties. Produced water royalties are royalties received from the transfer or disposal of produced water on our land and are contractual and not paid as a matter of right. Produced water royalties are also fee based and not directly impacted by lower commodity prices. However, indirectly, volumes may vary from period to period depending upon development activity levels and operator decisions involving recycling versus disposal of produced water. We do not operate any saltwater disposal wells. Produced water royalties increased to $90.7 million for the nine months ended September 30, 2025 compared to $76.0 million for the comparable period of 2024. The increase in produced water royalties was principally due to increased produced water volumes for the nine months ended September 30, 2025 compared to the same period of 2024.
Previous wording
Salaries and related employee expenses. Salaries and related employee expenses, which include not only salaries, equity and non-equity incentive compensation, but also employee benefits and contract labor expense, were $14.2 million for the six months ended June 30, 2025 compared to $12.3 million for the same period of 2024. The increase in salaries and related employee expenses is principally related to market compensation adjustments that take effect annually at the start of the year.
Current wording
Salaries and related employee expenses. Salaries and related employee expenses, which include not only salaries, equity and non-equity incentive compensation, but also employee benefits and contract labor expense, were $21.3 million for the nine months ended September 30, 2025 compared to $19.1 million for the same period of 2024. The increase in salaries and related employee expenses is principally related to increased contract labor costs associated with development of an in-house water management application and market compensation adjustments that take effect annually at the start of the year.
Previous wording
Depreciation, depletion and amortization. Depreciation, depletion and amortization was $8.8 million for the six months ended June 30, 2025 compared to $6.4 million for the comparable period of 2024. The increase was principally due to depreciation expense related to new water service-related assets placed in service.
Current wording
Depreciation, depletion and amortization. Depreciation, depletion and amortization was $13.3 million for the nine months ended September 30, 2025 compared to $10.1 million for the comparable period of 2024. The increase was principally due to depreciation expense related to new water service-related assets placed in service.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Draws on the Credit Facility will be repaid with cashflows generated from our operations. We believe that cash from operations and our cash and cash equivalents balance, together with our revolving Credit Facility will be sufficient to meet ongoing capital expenditures, working capital requirements, and other cash needs and allow for opportunistic transactions for at least the next 12 months. The Credit Facility remains undrawn as of November 5, 2025.
Current report — wording carried from elsewhere
General and administrative expenses. General and administrative expenses were $10.4 million for the nine months ended September 30, 2025 compared to $21.0 million for the comparable period of 2024. The decrease was primarily due to a decrease in legal and professional fees of $10.7 million over the same time period.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
The following table presents a reconciliation of net income to free cash flow for the three and nine months ended September 30, 2025 and 2024 (in thousands):
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Other income, net. Other income, net was $7.6 million for the six months ended June 30, 2025 compared to $18.9 million for the same period of 2024. Lower cash balances during the six months ended June 30, 2025 compared to the same period of 2024 resulted in a decrease in interest income. Additionally, during the six months ended June 30, 2024, we received $1.9 million of proceeds from a settlement with a title company regarding a defect in title to property acquired in a prior year.
Previous report — wording carried elsewhere
Water service-related expenses. Water service-related expenses decreased $5.5 million to $19.6 million for the six months ended June 30, 2025 compared to the same period of 2024. Certain types of water-related expenses, including, but not limited to, treatment, transfer, water purchases, repairs and maintenance, equipment rental, and fuel costs, vary from period to period as our customers’ needs and requirements change. Right of way and other expenses also vary from period to period depending upon location of customer delivery. The decrease in water service-related expenses for the three months ended June 30, 2025 compared to the same period of 2024 was principally related to a 14.9% decrease in water sales volumes.