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Texas Pacific Land reported an increase in first-quarter revenue, supported by higher oil and gas royalty earnings and stronger production volumes in the Permian Basin. The company also benefited from a major land transaction tied to a large-scale data center project, which added notable revenue during the quarter. While production levels improved compared to last year, lower natural gas prices affected the average realized price per barrel. The company’s adjusted core profit came in below market expectations despite the rise in overall revenue. Major energy companies such as Chevron, Occidental Petroleum and ConocoPhillips remain among its customers.
Texas Pacific Land reported a rise in first-quarter revenue, helped by stronger oil and gas royalty income and increased production activity across its Permian Basin assets. Advertisement
The company, which earns revenue through land use fees, royalty interests, water sourcing and treatment services, and construction material sales, posted total quarterly revenue of USD 236.8 million. This was higher than USD 196 million reported during the same period last year.
A major contributor to the growth came from a land sale linked to a large-scale data center development. The transaction generated USD 20.9 million in revenue during the quarter, reflecting increasing demand for strategically located land parcels in energy and infrastructure-focused regions.
Oil and gas royalty revenue stood at USD 118.2 million, compared to USD 111.2 million a year earlier. The company said its share of production rose to 37,100 barrels of oil equivalent per day from 31,100 barrels per day recorded in the corresponding quarter last year.
Despite the rise in production volumes, the average realized price for each barrel of oil equivalent declined to USD 37.06 from USD 41.58 a year ago. The decline was mainly due to lower natural gas prices, which continued to impact energy producers across the sector over recent quarters.
The company’s adjusted core profit for the quarter came in at USD 181.4 million. However, this remained below analysts’ expectations of USD 204.5 million, according to data compiled by LSEG.
Texas Pacific Land has continued to benefit from strong activity in the Permian Basin, one of the most productive oil regions in the United States. The company owns extensive land and royalty assets in the region and has increasingly expanded its revenue streams beyond traditional oil and gas operations through water services and land-related opportunities.
As of the end of last year, the company’s customer base included major energy producers such as Chevron, Occidental Petroleum and ConocoPhillips, highlighting its long-standing presence in the US energy sector.
Source Reuters
5th Jun, 2025
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