Texas Pacific Land Corporation · NYSE:TPL
Texas Pacific Land — Q2 2025 Earnings Presentation
47 slides from Texas Pacific Land's earnings presentation, Aug 7, 2025
Slide 1: Texas Pacific Land Corporation
Texas Pacific Land Corporation Investor Presentation – August 2025 NYSE: TPL
Slide 2: Disclaimers
Disclaimers This presentation has been designed to provide general information about Texas Pacific Land Corporation and its subsidiaries (“TPL” or the “Company”). Any information contained or referenced herein is suitable only as an introduction to the Company. The recipient is strongly encouraged t
Slide 3: 2Q 2025 Summary Financial and Operating Update
2Q 2025 Summary Financial and Operating Update 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 O&G Royalty Production Total Water Sales Volumes1 Selected consolidated financials ($MM): (mboe/d) (mbbl/d) 33.2 Oil and gas royalties $89.8 $94.4 $97.0 $111.2 $95.0 31.1 28.3 29.1 800 792 Water sales 40.7 36.2 36
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Slide 5: Value Creation Culture and Proven Performance
Value Creation Culture and Proven Performance Average Annual Total Return Since 2017 (Compounded annual return from 1/1/2017 to 12/31/2024) 37% 18% (Composite) 15% WTI Oil 4% fsfsdfsfs S&P Oil & Gas (1%) E&P Index Land & Resource Management Water Services & Operations Net Income ($ millions) Net Inc
Slide 6: Unique Permian Basin Pure-Play
Unique Permian Basin Pure-Play Positioned to capture Balance Sheet Strength Efficient conversion of upside $ revenues to cash No Debt $611 Million $ $461 Million Cash Balance of 2024 Adjusted EBITDA 2024 Free Cash Flow $544 Million Diversified Revenue ~25,800 Streams: Core Permian Net Royalty 100% P
Slide 7: Texas Pacific Land Corporation (NYSE: TPL)
Texas Pacific Land Corporation (NYSE: TPL) ■ One of the largest landowners in Texas with approximately 874,000 acres located in the Permian Basin TPL by the Numbers1 ■ TPL was originally organized in 1888 as a business trust to manage the property of the Texas and Pacific Market Value ($MM) $22,668
Slide 8: TPL History and Evolution
TPL History and Evolution 1871 1888 1927 2010’s 2016 2017 2021 Texas & Pacific Texas & Pacific Railway TPL sub-share certificates $ bankruptcy leads to the listed on NYSE. TPL is The Permian Basin begins New management Railway is created and TPL forms Texas formation of Texas among the few to grow p
Slide 9: Unmatched Permian Footprint Combined With Premier Operators
Unmatched Permian Footprint Combined With Premier Operators Royalty Acreage Surface and Easement Acreage Combined Royalty & Surface Revenue Contribution1 (FY 2024) 26% Other 38% Super- majors Large-cap independents 36% (1) Permian supermajors include Chevron, Exxon, ConocoPhillips, BP and their resp
Slide 10: Permian Basin is a World-Class Resource
Permian Basin is a World-Class Resource Permian vs Major Oil Producer Nations Estimated Remaining Well Locations with US Rig Counts by Oil Basin <$55/bbl Breakeven Economics Permian Williston Russia 9.0 DJ-Niobrara Eagle Ford Cana Woodford Saudi Arabia 9.0 350 ~60,000 US ex- Permian 7.0 300 CRUDE (M
Slide 11: Capital Allocation Framework Focused on Maximizing Shareholder Value
Capital Allocation Framework Focused on Maximizing Shareholder Value Return Capital Protect Capital Invest Capital Return substantial amounts of capital Maintain strong balance sheet to Balance capital returns with through dividends and repurchases preserve financial flexibility attractive, high-ret
Slide 12: Focused on Allocating Capital Towards Highest Returns
Focused on Allocating Capital Towards Highest Returns Growing Free Cash Flow per Share is the Key to Generating Value We believe the key to maximizing shareholder value is to TPL FY 2024 Allocation of Operating Cash Flow maximize intrinsic value per share, which can also be expressed by long-term fr
Slide 13: TPL’s Combined Surface and Royalties Is Unique
TPL’s Combined Surface and Royalties Is Unique Comparison of Significant Revenue Generation by Asset Type Performance – FY 2024 versus FY 2022 78% Substantial surface and water related revenue growth despite O&G price 52% declines since FY 2022 44% Surface ― ― ― ― ― Water ― ― ― ― (19%) Royalties ― ―
Slide 14: TPL Maintains Top Tier Profitability Margins
TPL Maintains Top Tier Profitability Margins TPL Land & TPL Water 64% FY 2024 net Consolidated TPL 71% FY 2024 net Resource 52% FY 2024 net Services & income margin income margin Management income margin Operations Net Income Margin Comparison Net Income Margin Distribution for S&P 500 Constituents
Slide 15: Permian Activity Overview
Permian Activity Overview Permian Oil Production Permian Horizontal Rig Counts Permian Well Permits (mmbbl/d) 2,044 2,013 7.0 1,916 338 338 1,848 314 1,788 1,746 1,780 301 301 302 1,728 294 289 289 1,591 273 1,436 6.0 5.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2023 2023 2023 202
Slide 16: Investment Highlights
Investment Highlights Permian Basin is a world class resource – Midland and Delaware Basins each possess tens of thousands of future undrilled well inventory Unique combination of surface and royalty ownership generates revenue throughout the entire lifecycle of a well Efficient conversion of revenu
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Slide 18: Jay Gould, Founder - Texas and Pacific Railway
Jay Gould Founder - Texas and Pacific Railway 18
Slide 19: Survey team (June 1930)
Survey team (June 1930) Survey marker (northwest corner of Section 39, Block 62, Township 2) El Capitan peak – Culberson County Orla Field Camp for survey team (June 1930) Camp Delaware Survey team in sand dunes near Guadalupe Mountains “Old Red” 19
Slide 20: TPL Currently Has Four Primary Revenue Streams
TPL Currently Has Four Primary Revenue Streams Surface Leases, Easements and O&G Royalties Water Sales Produced Water Royalties Material (“SLEM”) ■ Primarily own Non-Participating Royalty Interests ■ Surface acreage provides multiple income streams ■ Surface acreage provides ownership of water ■ Fac
Slide 21: Oil and Gas Royalties
Oil and Gas Royalties Overview and Management Producing Horizontal Wells (Gross) on TPL How TPL is Delivering Value Revenue Mechanics and Management Oil and gas royalties represent real property Oil and Gas Royalty Acreage 7,000 By interfacing directly with operators across interests entitling the o
Slide 22: TPL Royalty Production and Inventory Detail
TPL Royalty Production and Inventory Detail TPL Inventory (net) TPL Producing Wells (net) TPL Net Royalty Production 24.3 95.4 (mboe/d) 90.2 22.1 22.6 22.2 86.8 79.2 26.8 19.8 19.8 3.0 5.4 73.3 25.7 3.4 70.2 24.7 5.1 67.2 23.4 17.0 17.6 62.6 62.8 18.8 16.1 15.4 5.2 4.0 59.4 2.2 17.7 2.8 16.8 16.2 3.
Slide 23: TPL source water infrastructure
TPL source water infrastructure 23
Slide 24: TPL source water pond
TPL source water pond 24
Slide 25: Raw land does not monetize itself
Raw land does not monetize itself Surface Estate Ownership (i) Operational and legal expertise of surface estate ownership within the oil and gas industry and (ii) proactive execution are Leveraging Ownership of Raw Surface into Cash Flow requisite towards extracting substantial cash flow from raw l
Slide 26: Surface, Leases, Easements and Materials (SLEM)
Surface, Leases, Easements and Materials (SLEM) Overview and Management TPL SLEM Revenue Breakdown (FY 2024) Revenue Mechanics and Management How TPL is Delivering Value Pipeline easements Leveraging technology such as advanced Provide operators/customers access-to or use- 25% GIS, satellite imaging
Slide 27: Water Sales
Water Sales Overview and Management Revenue Mechanics and Management TPL Water Sales Volumes1 How TPL is Delivering Value (mbbl/d) 736 TPL has developed the largest source water Surface estate ownership includes access to infrastructure network in the northern water aquifers Delaware Basin O&G upstr
Slide 28: Water Sales
Water Sales Asset Map TPL Source Water Network 800+ sourced & treatment capacity mbbl/d 34.2 storage capacity mmbbl 445 source water pipelines miles Average Fluid Used per Delaware Well Completion (mbbls) 486 490 455 411 424 393 357 332 TPL has developed and currently Average O&G well in the Delawar
Slide 29: Produced Water Royalties
Produced Water Royalties Overview and Management Revenue Mechanics and Management TPL Produced Water Royalty Volumes How TPL is Delivering Value (mbbl/d) “Produced water” refers to water that flows from a 3,435 Intentionally commercialized to generate high- producing O&G well; given solids content a
Slide 30: Produced Water Royalties
Produced Water Royalties Delaware Upstream Activity + High Water-Cuts to Drive Produced Water Volume Growth Water vs Oil Production – Average Well in Delaware Basin1 (mbbl) First 12 months production First 36 months production ~1,210 ~680 ~305 ~180 TPL has executed numerous AMI TPL also generates si
Slide 31: TPL Captures Revenue Over the Well Lifecycle
TPL Captures Revenue Over the Well Lifecycle E&P/upstream operators procure regulatory permits; prepare future well 1 Permit site and develop infrastructure ■ Fixed fees for use of TPL’s surface for the construction and operation of infrastructure (e.g., well sites, wellbores, pipelines) SLEM ■ Sale
Slide 32: Permian’s Massive Resource Potential
Permian’s Massive Resource Potential Enormous Acreage Extent and Stacked Pay Potential Enormous Acreage Extent Midland and Delaware Basins Greater Permian Basin Extent ~26,000 ~17,000,000 square miles acres Combined Midland and Delaware Footprint Stacked Pay Reserves 10+ for each Midland and Delawar
Slide 33: TPL Innovation | Produced Water Desalination and Beneficial Reuse
TPL Innovation | Produced Water Desalination and Beneficial Reuse Produced Water Desalination Key Milestones Commercial Purpose Proof of concept: freeze desalination works and pathway to TPL Desalination Project Overview affordable cost ■ Oil and gas development activity in the Permian Basin require
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Slide 35: Appendix
Appendix
Slide 36: NRI by Operator
Summary of Highest-Visibility Inventory 100% NRI Permitted Wells 100% NRI DUC Wells 100% NRI Completed Wells ■ ~83% of Permits are drilled within 6 months ■ ~26% of DUCs are completed within 6 months ■ ~95% of Completed Wells are listed as producing ■ ~91% of Permits are drilled within 12 months ■ ~
Slide 37: The Basics of Royalties Ownership
The Basics of Royalties Ownership Key Terms and Comparison: Royalties/Minerals vs Lease Interest Illustrative Economic Model – Minerals/Royalties vs Lease Interest Royalties / Minerals Lease Interest Capital Costs and Revenue / Companies that own lease interests are also generally Participants Most
Slide 38: Water Sales – Operated vs Royalty/Non-Operated Business Model
Water Sales – Operated vs Royalty/Non-Operated Business Model Royalty / Non-Operated Source Water Model (i.e., pre-TPWR) FAQ TPL formed TPWR in July 2017 Pre-TPWR development, TPL had negotiated History various royalty agreements with 3rd party Why doesn’t TPL have a non- operators operated Water Sa
Slide 39: Compensation Incentives Aligned With Shareholder Value Creation
Compensation Incentives Aligned With Shareholder Value Creation Mix (% of Total)1 Intent Key Performance Dimensions Fixed (16%)1 16% Deliver competitive fixed cash Based on individual role, level of Base Salary compensation for day-to-day job experience and performance performance Incentivize
Slide 40: Sustainability is Embedded in Our Strategy
Sustainability is Embedded in Our Strategy Key Opportunities ■ Government policies incentivize sustainable energy projects (e.g., carbon capture, utilization and storage) and Carbon Management TPL can reposition its business to take advantage of the opportunities created by these policies ■ Water re
Slide 41: Our Environmental Management Initiatives
Our Environmental Management Initiatives ■ Implementation of Spill Prevention, Control, and Countermeasure plan and protocol for water assets, which are equipped with tech / containment protections Incidents and Spill ■ Thorough tracking and monitoring of all spills; information is entered into cent
Slide 42: ESG Update
ESG Update Key Statistics Emissions vs Revenue Category 2020 2021 2022 2023 2024 Emissions Scope 1 CO2 Emissions 18,987 16,159 10,590 13,819 14,945 $706 $667 Scope 2 CO2 Emissions 5,110 6,596 11,492 10,572 14,663 $632 Total Scope 1 + Scope 2 24,097 22,755 22,082 24,391 29,608 Methane Emissions 0 0 0
Slide 43: Royalty Key Terms
Royalty Key Terms Net Royalty Acres Implied Avg Net Revenue Focus Area Gross Royalty Acres Average Royalty Gross DSU Acres (8/8th) Interest per well Delaware Basin 338,600 19,300 5.7 % 965,500 2.0 % Midland Basin 328,200 4,800 1.5 % 978,600 0.5 % Other 34,300 1,700 5.0 % 65,900 2.6 % Total 701,100 2
Slide 44: Non-GAAP Reconciliations - Consolidated
Non-GAAP Reconciliations - Consolidated Year ended December 31, Three months ended, ($ in millions) 2018 2019 2020 2021 2022 2023 2024 2Q24 3Q24 4Q24 1Q25 2Q25 Net Income $209.7 $318.7 $176.1 $270.0 $446.4 $405.6 $454.0 $114.6 $106.6 $118.4 $120.7 $116.1 Income tax expense 52.0 83.6 43.6 93.0 122.5
Slide 45: Non-GAAP Reconciliations - Segment
Non-GAAP Reconciliations - Segment Land and Resource Management Water Services and Operations Quarterly Annual Quarterly Annual ($ in millions) 2Q24 3Q24 4Q24 1Q25 2Q25 2023 2024 2Q24 3Q24 4Q24 1Q25 2Q25 2023 2024 Net income $80.1 $71.9 $81.9 $85.5 $86.6 $306.7 $314.9 $34.5 $34.7 $36.4 $35.1 $29.6 $
Slide 46: Historical Financial Summary
Historical Financial Summary Year ended December 31, Three months ended, ($ in millions) 2022 2023 2024 June 30, 2024 March 31, 2025 June 30, 2025 Total Acres 874,366 868,446 873,136 869,045 873,136 873,923 Revenues: Oil and gas royalties $452.4 $357.4 $373.3 $89.8 $111.2 $95.0 Water sales 84.7 112.
Slide 47: Texas Pacific Land Corporation
Texas Pacific Land Corporation 1700 Pacific Avenue, Suite 2900 Dallas, Texas 75201