Texas Pacific Land Corporation

Strong Q1 Performance: Texas Pacific Land Corporation (TPL) reported record quarterly results with oil and gas royalty production averaging approximately 31,100 barrels of oil equivalent per day, indicating a 7% growth sequentially and a remarkable 25% growth year-over-year (YOY). Water segment revenues reached $69 million, demonstrating a 3% sequential increase and an 11% YOY increase, highlighting resilience in TPL's business despite broader market challenges.

Positive Free Cash Flow and Strong Financial Position: TPL generated free cash flow of $127 million for Q1 2025, reflecting an 11% increase compared to the previous year. The company maintained a net cash position of $460 million with zero debt, positioning TPL strongly for potential opportunities in a volatile market.

Robust Well Inventory and Hedged Revenue Streams: TPL has a strong near-term well inventory with 24.3 net wells (including permitted, drilled but uncompleted, and completed but not producing) - the highest recorded level. This inventory is expected to provide stability in production levels even if market conditions worsen. Additionally, TPL's revenue from produced water royalties is relatively insulated from commodity price fluctuations, given its fixed fee model.