On this page of StockholderLetter.com we present the latest annual shareholder letter from Texas Pacific Land Corp — ticker symbol TPL. Reading current and past TPL letters to shareholders can bring important insights into the investment thesis.
TEXAS PACIFIC LAND CORPORATION 2025 ANNUAL REPORT
Letter to Stockholders Dear Fellow Stockholders, TPL delivered another excellent year in 2025, setting all-time records for consolidated revenue, net income, and free cash flow. Despite lower oil prices in 2025 compared to the prior year, TPL achieved record oil and gas royalty production, water sales volumes, and produced water volumes. This continues a trend of TPL generating growth even when the broader commodity price environment has been less supportive. Over the last three years, TPL has generated a compound annual growth rate of 17% in oil and gas royalty production volumes, 18% in water sales volumes, and 30% in produced water royalty volumes. For the full year 2025, TPL generated consolidated revenues of $798 million, net income of $481 million, and free cash flow of $498 million. Oil and gas production reached 34.6 thousand barrels of oil equivalent ( BOE ) per day, which represents year-overyear growth of 29%. Our Water Services and Operations segment delivered water sales volumes of 763 thousand barrels per day and produced water volumes of 4.3 million barrels per day. OUR BUSINESS SEGMENTS Land and Resource Management Our Land and Resource Management segment focuses on capturing the economic value from our expansive royalty and mineral acreage and land ownership. The royalties and minerals generate a high-margin cash flow stream derived from oil and gas production in the Permian Basin. Our land ownership enables us to support oil and gas development by providing customers pipeline and wellbore easements, surface leases, and materials sales, among other items. For the full year 2025, total segment revenues were approximately $491 million, composed of oil and gas royalty revenue of approximately $412 million and surfacerelated income of approximately $79 million. Oil and gas royalty revenues were supported by record oil and gas production, benefiting from a combination of robust development activity on our royalty acreage and acquisition of high-quality mineral and royalty assets. This volume growth more than offset lower oil price realizations driven by a weaker commodity price environment. Surface-related income also grew, driven primarily by pipeline easements, wellbore easements, and lease bonuses. Water Services and Operations Our Water Services and Operations segment provides critical water solutions for upstream and midstream customers throughout the Permian Basin. TPL s significant land ownership and water infrastructure investments give us the ability to capitalize on sourcing water to operators for development activities. Furthermore, demand for produced water disposal on and around our surface remains strong as higher oil and gas production generates a commensurate increase in produced water volumes. For the full year 2025, our Water Services and Operations segment set new records with revenues of $307 million and net income of $159 million, with both water sales and produced water royalties reaching record levels. Water sales were supported by TPL leveraging its infrastructure size and scale to position itself as one of a limited number of water providers that can reliably meet the intensifying water demands from modern well development techniques such as simulfracs and co-completions. Growing Permian produced water volumes and TPL s ongoing commercial efforts to execute agreements with operators for surface and pore space access drove record growth in our produced water royalties. CAPITAL ALLOCATION Growth Opportunities During 2025, we deployed approximately $540 million of capital into acquisitions and new growth investments. We acquired approximately 17,300 Permian net royalty acres for approximately $450 million. Roughly 70% of the acquired acreage is adjacent to or overlaps drilling spacing units where we already hold an interest, and is largely operated by blue-chip operators. We also acquired approximately 8,100 surface acres in Martin County, Texas, expanding our footprint in the core of the Midland Basin. This acreage contains numerous surface and water-related cash flow streams, and we expect to drive substantial growth on this asset as we apply our commercial expertise. We made a $50 million minority investment in Bolt Data & Energy, Inc. ( Bolt ), a data and energy infrastructure company co-founded and chaired by Eric Schmidt, former
CEO of Google. Bolt plans to develop large-scale data center campuses and supporting infrastructure. In addition to our equity investment, TPL has the right of first refusal to supply water to Bolt-affiliated projects. Our expansive land position, access to conventional and renewable energy, and industryleading water position will allow TPL to benefit as West Texas emerges as a dominant hub for compute and power infrastructure. For Bolt, its expertise and relationships in the technology industry provide a natural synergy to TPL s competencies, and we believe our combined efforts can help bring hyper-scaled data infrastructure and power to West Texas. We also advanced our produced water desalination initiative as we began construction of a 10,000 barrel per day test facility in Orla, Texas. The project could provide an additional solution to growing Permian produced water volumes. Our Orla pilot facility, which commenced commissioning in 2026, will allow TPL to evaluate operational efficiencies and economics at scale, and successful demonstration will be a precursor to larger commercialscale produced water desalination. In addition, we are investigating various opportunities related to data center and/or power generation collocation and beneficial reuse, which could enhance the economics of produced water desalination. Stockholder Returns During 2025, we paid $148 million in cash dividends and repurchased $8 million of common stock for a total of $156 million returned to stockholders. In December, we effected a three-for-one stock split. In February 2026, we declared a 12.5% increase in the regular quarterly dividend to $0.60 per share. In October 2025, TPL executed a new $500 million revolving credit facility, which meaningfully expands our liquidity capacity at attractive credit spreads. At year end, we still maintained a balance sheet with significant cash and no debt. TPL s balance sheet and liquidity profile have never been stronger, and we retain tremendous flexibility to execute on growth opportunities and to expand stockholder return of capital. LOOKING AHEAD We continue to execute against our strategic operating and growth initiatives in 2026, and the opportunity set across all of our existing businesses is as compelling as at any point in our history. The Permian Basin remains a worldclass resource with unmatched remaining inventory compared to the rest of the US, and TPL has a dominant Permian position across royalties, land, and water from which we can extract value through active management, organic investment, and consolidation. Furthermore, the data center and power generation opportunity in West Texas is immense, and TPL is leveraging its existing expertise to drive growth and create value for stockholders. Thank you to our leadership team and employees for their relentless dedication and pursuit of excellence, and to my fellow board members for their unwavering support, collaboration, and shared commitment to our mission throughout the year. Before closing, we note with great sadness the passing of my fellow board member, Murray Stahl, in April 2026. Murray served on our board from the Company s conversion to a C-corporation in January 2021 until the time of his passing, and through Horizon Kinetics and its predecessor firms he was also TPL s largest stockholder for decades. He was widely respected for his judgment, dedication, and professionalism, and he was instrumental in strengthening our governance, advancing our growth strategies, and advocating on behalf of the Company. On behalf of the board, I extend our deepest condolences to his family, friends, and colleagues at Horizon Kinetics. In May 2026, we welcomed Peter Doyle, Co-Founder and Co-Chief Executive Officer of Horizon Kinetics, to our board, and we look forward to his perspective and engagement as a director. Finally, thank you to my fellow stockholders for your confidence in TPL. Sincerely, Rhys J. Best Chairman of the Board
Performance Graph The following graph compares the cumulative total return from January 11, 2021 (the date of our Corporate Reorganization) through December 31, 2025 of our Common Stock; the State Street S&P 500 ETF, which includes TPL; and the Reference Group. The graph assumes that $100 was invested at the beginning of the period and that all dividends were reinvested for each of TPL, the S&P 500, and the Reference Group. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in our 2025 Annual Report furnished herewith. The Reference Group consists of the companies referenced in Part III, Item 11. Executive Compensation. $500 $400 $300 $200 $100 January 11, 2021 December 31, 2021 Texas Pacific Land Corp December 31, 2022 December 31, 2023 Reference Group December 31, 2024 December 31, 2025 State Street S&P 500 ETF The information contained in the graph above is furnished and therefore not to be considered filed with the SEC or soliciting material under the Exchange Act and is not incorporated by reference into any document that incorporates this Annual Report by reference, irrespective of any general incorporation by reference language contained in such document.
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TPL Shareholder/Stockholder Letter Transcript:

TEXAS PACIFIC LAND CORPORATION
2025 ANNUAL REPORT


Letter to Stockholders
Dear Fellow Stockholders,
TPL delivered another excellent year in 2025, setting all-time records for consolidated
revenue, net income, and free cash flow. Despite lower oil prices in 2025 compared to
the prior year, TPL achieved record oil and gas royalty production, water sales volumes,
and produced water volumes. This continues a trend of TPL generating growth even
when the broader commodity price environment has been less supportive. Over the
last three years, TPL has generated a compound annual growth rate of 17% in oil and
gas royalty production volumes, 18% in water sales volumes, and 30% in produced water
royalty volumes.
For the full year 2025, TPL generated consolidated revenues of $798 million, net income
of $481 million, and free cash flow of $498 million. Oil and gas production reached
34.6 thousand barrels of oil equivalent (   BOE   ) per day, which represents year-overyear growth of 29%. Our Water Services and Operations segment delivered water sales
volumes of 763 thousand barrels per day and produced water volumes of 4.3 million
barrels per day.
OUR BUSINESS SEGMENTS
Land and Resource Management
Our Land and Resource Management segment focuses on capturing the economic
value from our expansive royalty and mineral acreage and land ownership. The royalties
and minerals generate a high-margin cash flow stream derived from oil and gas
production in the Permian Basin. Our land ownership enables us to support oil and gas
development by providing customers pipeline and wellbore easements, surface leases,
and materials sales, among other items.
For the full year 2025, total segment revenues were approximately $491 million,
composed of oil and gas royalty revenue of approximately $412 million and surfacerelated income of approximately $79 million. Oil and gas royalty revenues were
supported by record oil and gas production, benefiting from a combination of robust
development activity on our royalty acreage and acquisition of high-quality mineral
and royalty assets. This volume growth more than offset lower oil price realizations
driven by a weaker commodity price environment. Surface-related income also grew,
driven primarily by pipeline easements, wellbore easements, and lease bonuses.
Water Services and Operations
Our Water Services and Operations segment provides critical water solutions for
upstream and midstream customers throughout the Permian Basin. TPL   s significant
land ownership and water infrastructure investments give us the ability to capitalize
on sourcing water to operators for development activities. Furthermore, demand for
produced water disposal on and around our surface remains strong as higher oil and
gas production generates a commensurate increase in produced water volumes.
For the full year 2025, our Water Services and Operations segment set new records
with revenues of $307 million and net income of $159 million, with both water sales and
produced water royalties reaching record levels. Water sales were supported by TPL
leveraging its infrastructure size and scale to position itself as one of a limited number
of water providers that can reliably meet the intensifying water demands from modern
well development techniques such as simulfracs and co-completions. Growing Permian
produced water volumes and TPL   s ongoing commercial efforts to execute agreements
with operators for surface and pore space access drove record growth in our produced
water royalties.
CAPITAL ALLOCATION
Growth Opportunities
During 2025, we deployed approximately $540 million of capital into acquisitions and
new growth investments. We acquired approximately 17,300 Permian net royalty acres
for approximately $450 million. Roughly 70% of the acquired acreage is adjacent to or
overlaps drilling spacing units where we already hold an interest, and is largely operated
by blue-chip operators. We also acquired approximately 8,100 surface acres in Martin
County, Texas, expanding our footprint in the core of the Midland Basin. This acreage
contains numerous surface and water-related cash flow streams, and we expect to
drive substantial growth on this asset as we apply our commercial expertise.
We made a $50 million minority investment in Bolt Data & Energy, Inc. (   Bolt   ), a data
and energy infrastructure company co-founded and chaired by Eric Schmidt, former

CEO of Google. Bolt plans to develop large-scale data center campuses and
supporting infrastructure. In addition to our equity investment, TPL has the
right of first refusal to supply water to Bolt-affiliated projects. Our expansive
land position, access to conventional and renewable energy, and industryleading water position will allow TPL to benefit as West Texas emerges as a
dominant hub for compute and power infrastructure. For Bolt, its expertise
and relationships in the technology industry provide a natural synergy to
TPL   s competencies, and we believe our combined efforts can help bring
hyper-scaled data infrastructure and power to West Texas.
We also advanced our produced water desalination initiative as we began
construction of a 10,000 barrel per day test facility in Orla, Texas. The project
could provide an additional solution to growing Permian produced water
volumes. Our Orla pilot facility, which commenced commissioning in 2026,
will allow TPL to evaluate operational efficiencies and economics at scale,
and successful demonstration will be a precursor to larger commercialscale produced water desalination. In addition, we are investigating various
opportunities related to data center and/or power generation collocation and
beneficial reuse, which could enhance the economics of produced water
desalination.
Stockholder Returns
During 2025, we paid $148 million in cash dividends and repurchased
$8 million of common stock for a total of $156 million returned to stockholders.
In December, we effected a three-for-one stock split. In February 2026, we
declared a 12.5% increase in the regular quarterly dividend to $0.60 per share.
In October 2025, TPL executed a new $500 million revolving credit facility,
which meaningfully expands our liquidity capacity at attractive credit spreads.
At year end, we still maintained a balance sheet with significant cash and no
debt. TPL   s balance sheet and liquidity profile have never been stronger, and
we retain tremendous flexibility to execute on growth opportunities and to
expand stockholder return of capital.
LOOKING AHEAD
We continue to execute against our strategic operating and growth initiatives
in 2026, and the opportunity set across all of our existing businesses is as
compelling as at any point in our history. The Permian Basin remains a worldclass resource with unmatched remaining inventory compared to the rest of
the US, and TPL has a dominant Permian position across royalties, land, and
water from which we can extract value through active management, organic
investment, and consolidation. Furthermore, the data center and power
generation opportunity in West Texas is immense, and TPL is leveraging its
existing expertise to drive growth and create value for stockholders.
Thank you to our leadership team and employees for their relentless
dedication and pursuit of excellence, and to my fellow board members for
their unwavering support, collaboration, and shared commitment to our
mission throughout the year.
Before closing, we note with great sadness the passing of my fellow board
member, Murray Stahl, in April 2026. Murray served on our board from the
Company   s conversion to a C-corporation in January 2021 until the time
of his passing, and through Horizon Kinetics and its predecessor firms he
was also TPL   s largest stockholder for decades. He was widely respected for
his judgment, dedication, and professionalism, and he was instrumental
in strengthening our governance, advancing our growth strategies, and
advocating on behalf of the Company. On behalf of the board, I extend our
deepest condolences to his family, friends, and colleagues at Horizon Kinetics.
In May 2026, we welcomed Peter Doyle, Co-Founder and Co-Chief Executive
Officer of Horizon Kinetics, to our board, and we look forward to his perspective
and engagement as a director.
Finally, thank you to my fellow stockholders for your confidence in TPL.
Sincerely,
Rhys J. Best
Chairman of the Board

Performance Graph
The following graph compares the cumulative total return from January        11, 2021 (the date of our Corporate
Reorganization) through December        31, 2025 of our Common Stock; the State Street S&P        500 ETF, which includes TPL; and the
Reference Group. The graph assumes that $100 was invested at the beginning of the period and that all dividends were reinvested
for each of TPL, the S&P        500, and the Reference Group. Capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in our 2025 Annual Report furnished herewith.
The Reference Group consists of the companies referenced in Part III, Item 11.    Executive Compensation.   
$500
$400
$300
$200
$100

January 11, 2021
December 31,
2021
Texas Pacific Land Corp
December 31,
2022
December 31,
2023
Reference Group
December 31,
2024
December 31,
2025
State Street S&P 500 ETF
The information contained in the graph above is furnished and therefore not to be considered    filed    with the SEC or
   soliciting material    under the Exchange Act and is not incorporated by reference into any document that incorporates this Annual
Report by reference, irrespective of any general incorporation by reference language contained in such document.


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