Record Performance Amid Commodity Price Weakness: Texas Pacific Land Corporation (TPL) reported record quarterly revenue of $188 million for Q2 2025, driven by oil and gas royalty production of 33,200 barrels of oil equivalent per day, a 33% increase year-over-year. Despite the average WTI Cushing oil price dropping to $64 per barrel¡ªthe lowest since Q1 2021¡ªTPL achieved a strong adjusted EBITDA margin of 89%.

Opportunities in Produced Water Management: TPL captured $31 million in produced water royalties, another company record. The firm is expanding its produced water solutions, which includes new landfill pore space acquisitions and a desalination facility under construction. This expanding business segment positions TPL to benefit from increasing volumes of produced water, currently around 23 million barrels per day within the Permian.

Innovation and Technology Enhancements: TPL highlighted ongoing innovations in drilling techniques and efficiency in the Permian Basin, such as increased lateral lengths and new lightweight proppants that could significantly enhance recovery. TPL noted that advancements could lead to billions of barrels of incremental future production, representing a "free call option on innovation" for royalty owners.