Texas Pacific Land Corp (NYSE: TPL)

Texas Pacific Land Corporation is a Delaware corporation and one of the largest landowners in Texas with approximately 882000 surface acres concentrated in the Permian Basin. The company also holds oil and gas royalty interests under additional acres giving it a combined royalty position of about 224000 net royalty acres. It was originally organized as a trust in 1888 and reorganized into a corporation in 2021. Its core activities involve managing surface land and mineral rights to generate income from oil and gas development, water services, easements, leases and land sales.

Revenue is generated primarily from oil and gas royalties, easements for pipelines and power lines, commercial leases for processing and storage facilities, sales of materials such as caliche and sand, land sales, water sales, produced water royalties and fees for temporary permits related to various land uses. The company also earns income from leasing land to third parties for nonhazardous oilfield solids waste disposal and from strategic investments in data center infrastructure.

The company operates through the following segments: Land and Resource Management and Water Services and Operations.

• Land and Resource Management manages the companys approximately 882000 surface acres and about 224000 net royalty acres in the Permian Basin. Revenue comes from oil and gas royalties, easements for pipelines power lines and subsurface wellbores, commercial leases for storage compression and processing facilities, sales of caliche sand and other materials, land sales and income from renewable energy evaluations such as data centers power generation batteries and carbon capture projects. The segment also earns from leasing land to a third party that operates a nonhazardous oilfield solids waste disposal site.

• Water Services and Operations provides full service water sourcing produced water treatment infrastructure development and disposal solutions through its subsidiary Texas Pacific Water Resources LLC. Revenue is generated from sales of sourced and treated water, produced water royalties and easements related to water delivery. The segment also invests in technology to recycle produced water into fresh water for surface discharge and beneficial reuse.

The company holds a unique position as one of the largest private landowners in the Permian Basin giving it scale that few competitors can match. Its extensive surface and royalty holdings allow it to collect multiple revenue streams from the same acreage without bearing the costs of drilling and operating wells. Competitors include other landowners, water service companies and midstream operators but none possess the same combination of surface acreage and royalty interests. Advantages stem from low ongoing capital needs, strong cash flow margins and the ability to lease land for diverse uses ranging from traditional oil and gas activities to emerging data center and renewable projects.

The company serves primarily oil and gas exploration and production companies, midstream service providers and water management firms operating in the Permian Basin. While specific customer names are not disclosed, the filing indicates that three investment grade rated customers each accounted for at least ten percent of 2025 revenue showing a concentration among major energy corporations.