Here are 1-3 brief analogies to describe Texas Pacific Land (TPL):

• Like Weyerhaeuser (WY), but instead of timber, it manages vast tracts of West Texas land for oil, gas, and water resources, collecting royalties and leasing land.
• Imagine Franco-Nevada (FNV), but focused on oil, gas, and water royalties in the Permian Basin, combined with extensive surface land ownership and water infrastructure services.

• Land Leasing and Easements: Providing access to its vast land holdings for oil and gas operations, power lines, utility infrastructure, and roads through various leases and easements.
• Oil and Gas Royalty Interests: Earning passive income from nonparticipating perpetual oil and gas royalty interests under substantial acreage in West Texas.
• Water Services and Operations: Offering comprehensive water solutions to Permian Basin operators, including sourcing, gathering, treatment, disposal, and well testing.
• Water Royalty Interests: Earning royalties from the sale of water sourced from the company's land.
• Caliche Sales: Selling caliche, a material often used in construction, from its land.

Texas Pacific Land (TPL) primarily sells its services and resources to other companies.

Its major customers fall into the following categories:

• Oil and Gas Exploration and Production (E&P) Companies: These are the "operators in the Permian Basin" who are TPL's primary customers for its water services (sourcing, gathering, treatment, disposal, well testing). They also pay royalties for oil and gas production from TPL's royalty interests and lease land for drilling operations, facilities, and roads.
• Midstream and Energy Infrastructure Companies: These companies lease TPL's land for processing, storage, and compression facilities, as well as for pipelines and related infrastructure development tied to oil, gas, and related hydrocarbons.
• Utility Companies: Companies that utilize TPL's land for various easements, including those for power lines and other utility infrastructure.
• Construction and Industrial Companies: Customers who purchase materials such as caliche from TPL's land, likely for use in road construction, well pads, or other industrial applications.

The provided company description does not name specific public companies that are TPL's major customers.

The key risks to Texas Pacific Land's business include its significant dependence on the health and activity of the oil and gas industry in the Permian Basin, potential impacts from environmental regulations and policy shifts, and risks associated with water availability and management.

1. Dependence on the Oil and Gas Industry: Texas Pacific Land's revenue streams are heavily reliant on oil and gas exploration, development, and production activity, particularly within the Permian Basin. A substantial portion of its income is derived from nonparticipating perpetual oil and gas royalty interests (NPRI), easements for oil and gas infrastructure, and leasing of its land for related facilities. Furthermore, its Water Services and Operations segment provides services directly to oil and gas operators in the region. Therefore, fluctuations in crude oil and natural gas commodity prices, reduced drilling activity, or a long-term decline in demand for fossil fuels could significantly impact the company's royalty income, demand for its land and water services, and overall financial performance.

2. Environmental and Regulatory Risks: As a company deeply involved with land and resource management and water services in an active energy basin, Texas Pacific Land is exposed to various environmental regulations and potential policy changes. Stricter environmental regulations concerning oil and gas drilling, emissions, wastewater disposal (particularly produced water), or land use could increase operational costs for the operators it serves, potentially leading to reduced activity on TPL's land or decreased demand for its water services. Shifts in environmental policy towards renewable energy or conservation could also affect the long-term outlook for oil and gas development, indirectly impacting TPL.

3. Water Availability and Management Risks: The Water Services and Operations segment is a critical part of Texas Pacific Land's business, providing full-service water offerings to operators in the Permian Basin. Operating in an arid region, the company faces risks related to water scarcity, competition for water resources, and evolving water rights or conservation regulations. Changes in water availability, increasing costs of sourcing water, or more stringent rules regarding water usage and disposal could directly impact the profitability and operational capacity of its water services segment and potentially affect overall development activity in the Permian Basin, which in turn could reduce demand for TPL's other land-related services.

The accelerating global transition to renewable energy sources and electric vehicles poses a clear emerging threat. TPL's business model is overwhelmingly dependent on the sustained demand for and production of oil and gas in the Permian Basin. A rapid and widespread shift away from fossil fuels would diminish the value of its perpetual oil and gas royalty interests and reduce demand for its land leases and water services, fundamentally impacting its primary revenue streams.

Texas Pacific Land (TPL) operates in key segments within the Permian Basin, primarily focusing on land and resource management, and water services and operations. The addressable markets for its main products and services are significant within the U.S. and, more specifically, the Permian Basin.

Water Services and Operations

The Permian Basin represents a dominant portion of the U.S. midstream water market for oil and gas. This market, which includes water sourcing, transport, storage, treatment, and disposal, is projected to reach a total of US$156 billion between 2025 and 2030 across the U.S., with an average annual value exceeding US$26 billion at a 2.1% compound annual growth rate. The Permian Basin alone is expected to account for US$101.8 billion of this market through 2030, representing nearly two-thirds of the total U.S. market value. It is projected that the Permian Basin will require an average of 46.5 billion gallons of water annually for new well completions during this forecast period.

Within water services, the global produced water treatment market was estimated at USD 9,331.5 million in 2025 and is projected to grow to USD 16,479.2 million by 2033, with a compound annual growth rate of 7.5% from 2026 to 2033. North America held the largest share of this market in 2025, largely due to extensive oil and gas production activities in regions such as the Permian Basin. In 2024, the Permian Basin alone generated approximately 12 million barrels of produced water per day.

Land and Resource Management

Texas Pacific Land's land and resource management activities, including easements, commercial leases for oil, gas, power line, utility, and subsurface wellbore, and leasing land for facilities and roads, contribute to the broader U.S. oil and gas infrastructure market. The U.S. oil & gas infrastructure market size was valued at USD 78.9 billion in 2024 and is projected to grow at a CAGR of 6.4% from 2025 to 2034, reaching an estimated USD 147.8 billion by 2034. This market growth is driven by increasing energy demand and shale oil and gas production across the nation, including the Permian Basin, and involves the development and upgrading of extensive pipeline networks and related infrastructure.

For the direct addressable market size for oil and gas royalty interests and caliche sales, specific market size figures are not readily available and therefore, are considered null.

1. Sustained Growth in Oil and Gas Royalty Production: Texas Pacific Land anticipates continued growth in its oil and gas royalty production. This is supported by an elevated inventory of permitted, drilled but uncompleted (DUC), and completed not yet producing wells on its acreage. Furthermore, the trend of longer lateral lengths in new permitted wells is expected to enhance production volumes from the company's royalty interests.
2. Expansion of Water Services and Operations: The Water Services and Operations (WSO) segment is a key growth area for TPL. The company expects sustained levels of water sales and increased produced water royalties. Strategic initiatives in this segment include the nearing completion and anticipated ramp-up of volumes from the Orla desalination facility, as well as ongoing discussions for beneficial reuse and commercial agreements with operators.
3. Strategic Acquisitions of Royalty and Mineral Interests: TPL actively pursues strategic acquisitions of third-party owned surface, water, and royalty/mineral assets. These acquisitions are intended to complement and enhance the company's existing asset base, providing a consistent source of future growth in royalty production and revenue streams.
4. Development of Data Center and Power Generation Infrastructure: Leveraging its extensive land holdings in West Texas, Texas Pacific Land is exploring and investing in "next-generation" initiatives, particularly in data center and power generation co-location projects. A strategic partnership, such as with Bolt Data & Energy, is a notable step in this direction, aiming to establish West Texas as a hub for technology infrastructure.
5. Growth in Easements and Other Surface-Related Income: The company's Land and Resource Management segment generates revenue through easements and commercial leases for various infrastructure, including oil, gas, power lines, utility easements, and subsurface wellbores. The sale of materials like caliche, essential for infrastructure development, also contributes to this segment's growth, which is expected to continue as activity on its lands persists.

Share Repurchases

• Texas Pacific Land Corporation repurchased $8.4 million of common stock through December 31, 2025.
• The company repurchased $87.9 million of its outstanding Common Stock in 2022 and $19.9 million in 2021.
• On November 1, 2022, the board of directors approved a stock repurchase program to acquire up to an aggregate of $250 million of outstanding common stock, effective beginning January 1, 2023. Previously, a $100 million stock repurchase program was approved on March 11, 2022, and expired on December 31, 2022.

Share Issuance

• Texas Pacific Land Corporation effected a three-for-one stock split on December 22, 2025, with shares trading on a split-adjusted basis starting December 23, 2025.
• The company amended its Certificate of Incorporation to increase authorized common shares from 46,536,936 to 139,610,808 in conjunction with the stock split.

Outbound Investments

• In the fourth quarter of 2025, TPL acquired 17,306 net royalty acres, primarily in the Midland Basin, for $450.7 million in an all-cash transaction.
• TPL invested $50.0 million in Bolt Data & Energy, Inc. in late 2025, as part of a strategic agreement to develop large-scale data center campuses and supporting infrastructure on TPL land in West Texas.

Capital Expenditures

• Capital expenditures for 2025 were $66 million, which was at the low end of original guidance.
• For fiscal year 2026, anticipated capital expenditures are approximately $65 million to $75 million.
• Approximately $20 million of the 2026 capital expenditures will be allocated towards investigating waste heat capture and data center co-location potential for the desalination facility.