Texas Pacific Land Corporation operates in land and resource management, and water services and operations. Its Land and Resource Management segment manages surface acres and oil and gas royalty interests in the Permian Basin, and engages in easements for oil, gas, power lines, utilities, and subsurface wellbores. This segment also leases land for processing, storage, compression facilities, and roads, and sells materials such as caliche and sand, as well as land. The Water Services and Operations segment provides water sourcing, produced-water treatment, infrastructure development, and disposal solutions to Permian Basin operators, and holds produced water royalties. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres, a 1/16th NPRI under approximately 371,000 acres, and approximately 33,000 additional net royalty acres, totaling approximately 224,000 NRA in the Permian Basin. Founded in 1888, it is headquartered in Dallas, Texas.
TPL's Big New Driver: Land and Water for AI Data Centers
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Chevron picks TPL for Microsoft power project Chevron chose TPL to supply land and brackish water for Project Kilby, a $7 billion gas power plant for Microsoft in West Texas. TPL earns fees from surface acreage and water sales, a new income stream beyond oil and gas royalties.
This is the period's biggest new event, directly adding a fee-based revenue stream for TPL.
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Record Q2 revenue and production TPL reported record quarterly revenue of about $246 million, up 31% from a year ago, with record oil and gas royalty production and record produced water volumes. More production and water handling mean more cash flowing into the company.
Record financial and operating results show the core business is strong, supporting the stock.
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Advanced talks on 25 gigawatts of data center projects TPL is in advanced talks with hyperscalers, AI labs, and power generators on 25 gigawatts of projects and expects at least one major deal soon. This could turn its West Texas land and water into long-term, fee-based income.
This is a new, forward-looking catalyst that could significantly expand TPL's data center business.
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Q2 revenue missed estimates, weakest among peers TPL's Q2 revenue of $246.1 million rose 31.2% but missed analyst estimates by 1.4%, the weakest showing among shale peers. The stock fell 2.4% to $372.77, a reminder that high expectations can trip up the shares.
This is the main counterweight, showing that even strong growth can disappoint when peers beat by more.
Q3 2026
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TPL's Big New Driver: Land and Water for AI Data Centers
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Chevron picks TPL for Microsoft power project Chevron chose TPL to supply land and brackish water for Project Kilby, a $7 billion gas power plant for Microsoft in West Texas. TPL earns fees from surface acreage and water sales, a new income stream beyond oil and gas royalties.
This is the period's biggest new event, directly adding a fee-based revenue stream for TPL.
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Record Q2 revenue and production TPL reported record quarterly revenue of about $246 million, up 31% from a year ago, with record oil and gas royalty production and record produced water volumes. More production and water handling mean more cash flowing into the company.
Record financial and operating results show the core business is strong, supporting the stock.
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Advanced talks on 25 gigawatts of data center projects TPL is in advanced talks with hyperscalers, AI labs, and power generators on 25 gigawatts of projects and expects at least one major deal soon. This could turn its West Texas land and water into long-term, fee-based income.
This is a new, forward-looking catalyst that could significantly expand TPL's data center business.
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Q2 revenue missed estimates, weakest among peers TPL's Q2 revenue of $246.1 million rose 31.2% but missed analyst estimates by 1.4%, the weakest showing among shale peers. The stock fell 2.4% to $372.77, a reminder that high expectations can trip up the shares.
This is the main counterweight, showing that even strong growth can disappoint when peers beat by more.
News & notes movingTPL
United States
TPL▼
U.S. Shale E&P Stocks Beat Q2 Estimates by 10.4%
U.S. shale E&P stocks delivered an exceptional second quarter, with the 11 companies tracked beating analysts' consensus revenue estimates by 10.4% as a group. Chord Energy, the largest acreage holder in the Williston Basin, reported revenues of $2.17 billion, up 84% year on year and exceeding expectations by 31.9%, the biggest beat in the group, and its stock has risen 7.9% since reporting to $140.20. HighPeak Energy, operating in the Midland Basin, posted revenues of $272.4 million, up 25.8% year on year and beating estimates by 8.7%, though its stock is down 2.5% to $7.73. Texas Pacific Land, with roughly 868,000 acres in the Permian Basin, reported revenues of $246.1 million, up 31.2% year on year but missing estimates by 1.4%, the weakest performance among peers, and its stock is down 2.4% to $372.77. Matador Resources, focused on the Delaware Basin, saw revenues of $1.19 billion, up 32.5% year on year and beating estimates by 13.7%, with its stock up 18% to $55.50. Diamondback Energy, operating in the Permian Basin, reported revenues of $5.56 billion, up 51.2% year on year and beating estimates by 13.5%, with its stock flat at $199.02. On average, shale E&P stocks have risen 11.1% since the latest earnings results.
CHRD · Capital · Positive Chord Energy reported Q2 revenues of $2.17B, up 84% YoY and beating estimates by 31.9%, the biggest beat in the group.
FANG · Capital · Positive Diamondback Energy reported Q2 revenues of $5.56B, up 51.2% YoY and beating estimates by 13.5%.
HPK · Capital · Positive HighPeak Energy posted Q2 revenues of $272.4M, up 25.8% YoY and beating estimates by 8.7%.
MTDR · Capital · Positive Matador Resources saw Q2 revenues of $1.19B, up 32.5% YoY and beating estimates by 13.7%.
TPL · Capital · Negative Texas Pacific Land reported Q2 revenues of $246.1M, up 31.2% YoY but missing estimates by 1.4%, the weakest performance among peers.
Texas Pacific Land Corp posts record revenue and production, advances data center strategy
Texas Pacific Land Corp reported record quarterly total revenue of approximately $246 million, up 31% year over year, alongside record net income and free cash flow. Oil and gas royalty production reached a record average of about 39,700 barrels of oil equivalent per day, a 20% increase, while produced water royalty volumes hit a record 4.9 million barrels per day, up 15%. The company is advancing a multi-gigawatt data center project with Chevron and has acquired 10,000 acres in Shackelford and Jones County, Texas, expanding beyond its legacy Permian footprint. Management is in advanced talks on 25 gigawatts of projects with hyperscalers, AI labs, and power generators, and expects to announce at least one major definitive agreement soon. Water sales volumes declined 19% sequentially due to weak natural gas prices, and the oil cut in production dipped to the mid-30% range, below the expected long-term level of over 40%, partly due to accounting noise and gas-rich development.
ConocoPhillips and Texas Pacific Land Touted as Long-Term Energy Picks, Kosmos Energy Flagged as Underwhelming
An analysis identifies ConocoPhillips and Texas Pacific Land as energy stocks capable of generating sustainable market-beating returns, while Kosmos Energy is flagged as one to avoid. ConocoPhillips, with a market cap of $140.8 billion and revenue of $60.5 billion, is praised for its 8% annual revenue growth over the last ten years and strong free cash flow. Texas Pacific Land, valued at $27.36 billion, owns roughly 868,000 acres in the Permian Basin and earns revenue from oil and gas royalties, water services, and land leases. In contrast, Kosmos Energy, with a market cap of $1.45 billion and revenue of $1.37 billion, faces concerns over declining efficiency, negative free cash flow, and limited scale. The energy sector has returned 12.6% over the past six months, outperforming the S&P 500 by 6.4 percentage points.
Five Oil and Gas Stocks Positioned for a Strait of Hormuz Spike and Hawkish Fed
Energy investors face two opposing shocks: Iran's renewed closure of the Strait of Hormuz has pushed Brent crude above $86, while rising bond yields signal a hawkish Federal Reserve unlikely to cut rates soon. Five companies stand out as able to benefit from the crude surge without relying on cheap credit. ExxonMobil holds a 13 percent net-debt-to-capital ratio and $8.4 billion in cash, with upstream earnings of $5.7 billion driven by record Guyana output. EOG Resources is completely unhedged, giving shareholders full exposure to oil gains, and targets debt below one times EBITDA at $45 oil, ending the first quarter with $3.8 billion in cash. Valero is capitalizing on record refining margins, with second-quarter Gulf Coast indicators near $30 a barrel, and recently issued $850 million in notes to clear near-term maturities. Cheniere Energy, the largest U.S. LNG exporter, saw first-quarter adjusted EBITDA rise 25 percent as Gulf gas disruptions boost demand, though it carries higher leverage from terminal construction. Texas Pacific Land carries zero debt and $248 million in cash, collecting royalties across 881,000 surface acres in the Permian Basin, and posted record first-quarter revenue of $237 million.
Texas Pacific Land Corporation Rallied Over 50% in First Half of 2026
Shares of Texas Pacific Land Corporation rallied 52.4% in the first half of 2026. The company benefited from higher oil and gas prices driven by the war in Iran, given its 882,000 surface acres and 224,000 net royalty acres near the Permian Basin. West Texas is also becoming a prime location for AI data centers, and Texas Pacific Land secured a partnership with AI data center start-up Bolt, led by former Alphabet CEO Eric Schmidt, investing $50 million in December and gaining rights to supply power and water. In June, the company announced a deal with Chevron to provide land and brackish water for a power generation plant supporting a data center in Reeves County, Texas. The stock faced pressure in March and April from falling oil prices and the unexpected death of Horizon Kinetics Holdings' CEO, its largest shareholder, but rebounded on the Chevron news.
Texas Pacific Land beats Q1 estimates and signs Chevron power facility deal
Texas Pacific Land reported stronger-than-expected first-quarter 2026 results and announced an agreement with Chevron to provide land and brackish water for a power generation facility in Reeves County, Texas. The Chevron Project Kilby deal adds a fee-based revenue stream that could diversify earnings beyond traditional oil and gas royalties, though the company remains heavily exposed to Permian Basin activity and regulatory risks. Analyst estimates project around $1.3 billion in revenue and $826 million to $837 million in earnings by 2029, with some caution that power or data center projects may underperform. The stock currently trades at a 12% discount to one fair value estimate of $445, while other estimates suggest a potential downside of 37%.
Texas Pacific Land Could Be 11% Undervalued on Royalty Growth Narrative
Texas Pacific Land may be about 11% undervalued relative to the average analyst price target, with a most-followed fair value estimate of $445 against a last close of $397.82. The stock has returned 6.03% over the past month and 33.51% year-to-date, while its three-year total shareholder return stands at 170.22%. Recent developments include a disclosed single-share purchase by Horizon Kinetics Asset Management, a more than 10% shareholder, and an agreement with Chevron for land and brackish water supply, alongside first-quarter 2026 financial results that surpassed analyst expectations. However, the stock trades at 54.5 times earnings, roughly four times the US Oil and Gas industry average of 13.4 times, suggesting investors are paying a steep premium for perceived quality and growth. The key question is whether the market could eventually lean back toward a lower fair price-to-earnings ratio of 21.5 times.
U.S. Shale E&P Stocks' Q1 Earnings: Crescent Energy Vs The Rest Of The Pack
U.S. shale E&P stocks reported a satisfactory first quarter, with revenues beating analysts' consensus estimates by 2.7% as a group. Crescent Energy posted revenues of $1.18 billion, up 24.5% year on year, in line with expectations, but its stock fell 30.9% since reporting. Chord Energy was the best performer, with revenues of $1.67 billion beating estimates by 33.1%, though its shares still dropped 22.6%. Texas Pacific Land had the weakest quarter, missing revenue and EBITDA estimates, and its stock declined 1.3%. Matador Resources saw revenues fall 33.8% year on year to $671.6 million, missing estimates by 23%, and its shares fell 15.2%. Riley Exploration Permian beat revenue estimates by 4.4% with $113.9 million, but missed on EBITDA and EPS, and its stock slipped 3.3%. On average, share prices of the tracked companies are down 14.7% since their latest earnings results.
CHRD · Capital · Negative Chord Energy beat revenue estimates but its shares dropped 22.6% since earnings, indicating negative market reaction to earnings results.
CRGY · Capital · Negative Crescent Energy posted in-line revenues but its stock fell 30.9% since reporting, reflecting negative market sentiment on earnings.
MTDR · Capital · Negative Matador Resources saw revenues fall 33.8% YoY and missed estimates by 23%, with shares down 15.2% since earnings.
REPX · Capital · Negative Riley Exploration Permian beat revenue estimates but missed on EBITDA and EPS, with stock slipping 3.3% since earnings.
TPL · Capital · Negative Texas Pacific Land had the weakest quarter, missing revenue and EBITDA estimates, with stock declining 1.3% since earnings.
Chevron selects Texas Pacific Land for Microsoft’s Project Kilby
Chevron has selected Texas Pacific Land Corporation to provide land and brackish water resources for Project Kilby, a $7 billion initiative with Microsoft to build a 2.67 gigawatt natural gas-fired power facility in West Texas. Texas Pacific Land will supply surface acreage for cash and the exclusive right to source aquifer-derived water for the facility. The company is also tasked with providing brackish groundwater to reduce freshwater demand and advanced solutions for reusing desalinated produced water from oil and gas operations. Chevron’s Vice President of Power Solutions, Daniel Droog, said the project demonstrates how large-scale energy infrastructure can be developed responsibly in West Texas to meet increasing power and technology demands.
Energy Transition & Power Demand › Natural Gas Value Chain ▲Demand
Energy Transition & Power Demand › Behind-the-Meter & On-site Power ▲Demand
TPL · Demand · Positive Texas Pacific Land selected to provide land and water resources for Project Kilby, generating revenue from surface acreage and water supply.
CVX · Demand · Positive Chevron's Project Kilby, a $7B natural gas power facility, increases demand for Chevron's natural gas and power solutions.
MSFT · Demand · Positive Microsoft is partnering on a $7B power facility to meet its increasing power demands for technology operations.
Texas Pacific Land misses Q1 estimates as U.S. shale E&P stocks face post-earnings selloff
Texas Pacific Land reported first-quarter revenues of $236.8 million, up 20.8% year on year but falling short of analysts' expectations by 0.8%, with a significant miss on EBITDA estimates. The company, one of America's largest private landowners with roughly 868,000 acres in the Permian Basin, saw its stock drop 11.9% since reporting. Among the 11 U.S. shale E&P stocks tracked, the group beat revenue consensus by 2.7% on average, yet share prices are down 12.7% on average since their latest earnings. Chord Energy posted the strongest results, with revenues of $1.67 billion beating estimates by 33.1%, though its stock still fell 19.6%. Other notable performers included Matador Resources, which missed revenue expectations by 23%, and HighPeak Energy, which beat revenue estimates by 1.3% and saw its stock rise 10%.
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