Texas Pacific Land Corporation Announces Fourth Quarter and Full Year 2025 Results
Key Terms
adjusted ebitda financial
mbbls technical
mcf technical
mmcf technical
mboe technical
mboe/d technical
– Achieved Record Fiscal Year Consolidated Revenues, Net Income, and Free Cash Flow
– Achieved Record Quarterly Oil and Gas Royalties Production, Water Sales Volumes, and Produced Water Royalties Volumes
– Declared a
– Earnings Call to be Held Thursday, February 19, 2026 at 9:30 am CT
Fourth Quarter 2025 Highlights
-
Acquired 17,306 net royalty acres (standardized to 1/8th) located primarily in the Midland Basin for an aggregate purchase price of
$450.7 million -
Invested
$50.0 million -
Entered into a
$500 million - Effected a three-for-one stock split on December 22, 2025.
-
Achieved record performance results, including:
- Oil and gas royalty production of 37.5 thousand barrels of oil equivalent (“Boe”) per day
-
Water sales revenue of
$60.7 million -
Produced water royalties revenue of
$33.5 million -
Water Services and Operations segment revenues of
$98.2 million
- As of December 31, 2025, TPL’s royalty acreage had an estimated 5.6 net well permits, 9.8 net drilled but uncompleted wells (“DUCs”), and 4.0 net completed but not producing wells (“CUPs”), totaling 19.5 net wells(1). TPL had 116.1 net producing wells as of December 31, 2025, and net producing wells added during the quarter had an average lateral length of approximately 10,910 feet.(2)
-
Land and Resource Management segment revenues of
$113.4 million -
Consolidated net income of
$123.3 million $1.79 -
Adjusted EBITDA(3) of
$178.1 million -
Free cash flow(3) of
$118.9 million -
Quarterly cash dividend of
$0.53
Full Year 2025 Highlights
- Oil and gas royalty production of 34.6 thousand Boe per day
-
Produced water royalties revenue of
$124.2 million -
Land and Resource Management segment revenues of
$490.7 million -
Water Services and Operations segment revenues of
$307.5 million -
Consolidated net income of
$481.4 million $6.97 -
Adjusted EBITDA(3) of
$687.4 million -
Free cash flow(3) of
$498.3 million -
$147.8 million -
$8.4 million
(1) Total may not foot due to rounding. |
(2) Numbers reflected exclude recent royalty acquisition. |
(3) Reconciliations of non-GAAP performance measures are provided in the tables below. |
“Fourth quarter 2025 represents an excellent finish to a record year for TPL,” said Tyler Glover, Chief Executive Officer of the Company. “Oil and gas royalty production, water sales volumes, and produced water royalties volumes set records for this quarter and for the fiscal year. We also delivered fiscal year records for consolidated revenue, net income, and free cash flow. Our differentiated scale across royalties, land, and water enabled us to expand capture rates and generate growth despite broader commodity price headwinds. In addition, we have made substantial progress with next-generation opportunities in data centers and produced water desalination, and we plan to continue deploying resources to accelerate commercialization. TPL still maintains a net cash position and a fully undrawn
Financial Results for the Fourth Quarter of 2025 - Sequential
The Company reported net income of
Total revenues for the fourth quarter of 2025 were
Total operating expenses were
Financial Results for the Year Ended December 31, 2025
The Company reported net income of
Total revenues for the year ended December 31, 2025 were
Total operating expenses were
Quarterly Dividend Declared
On February 10, 2026, the Company’s Board of Directors declared a quarterly cash dividend of
Conference Call and Webcast Information
The Company will hold a conference call on Thursday, February 19, 2026 at 9:30 a.m. Central Time to discuss fourth quarter and year end results. A live webcast of the conference call will be available on the Investors section of the Company’s website at www.TexasPacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.
The conference call can also be accessed by dialing 1-877-407-4018 or 1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13757644. The telephone replay will be available starting shortly after the call through March 5, 2026.
About Texas Pacific Land Corporation
Texas Pacific Land Corporation is one of the largest landowners in the
Visit TPL at www.TexasPacific.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this news release are, and certain statements made on the related conference call may be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on TPL’s beliefs, as well as assumptions made by, and information currently available to, TPL, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,” “expect” and similar expressions or the negative of such terms identify forward-looking statements. Forward-looking statements include, but are not limited to, references to strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects; statements regarding anticipated benefits of recent acquisitions or the Permian Basin’s future drilling inventory and energy resources; and other statements that are not historical facts. You should not place undue reliance on forward-looking statements. Although TPL believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, TPL may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may differ materially from those set forth in the forward-looking statements due to a number of factors, including, but not limited to: the initiation or outcome of potential litigation; any changes in general economic and/or industry specific conditions; and the other risks discussed in TPL’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. You can access TPL’s filings with the Securities and Exchange Commission (“SEC”) through the SEC’s website at www.sec.gov and TPL strongly encourages you to do so. These forward-looking statements are based only on information available to TPL and speak only as of the date hereof. Except as required by applicable law, TPL undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.
FINANCIAL AND OPERATIONAL RESULTS
(unaudited)
Oil and Gas Activity
The table below provides financial and operational data by royalty stream:
|
|
Three Months Ended |
|
Years Ended |
||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||
Company’s share of production volumes (1): |
|
|
|
|
|
|
|
|
||||
Oil (MBbls) |
|
|
1,320 |
|
|
1,284 |
|
|
4,936 |
|
|
4,118 |
Natural gas (MMcf) |
|
|
6,328 |
|
|
6,142 |
|
|
23,359 |
|
|
17,074 |
NGL (MBbls) |
|
|
1,078 |
|
|
1,031 |
|
|
3,784 |
|
|
2,841 |
Equivalents (MBoe) |
|
|
3,453 |
|
|
3,338 |
|
|
12,613 |
|
|
9,804 |
Equivalents per day (MBoe/d) |
|
|
37.5 |
|
|
36.3 |
|
|
34.6 |
|
|
26.8 |
|
|
|
|
|
|
|
|
|
||||
Oil and gas royalty revenue (in thousands): |
|
|
|
|
|
|
|
|
||||
Oil royalties |
|
$ |
74,998 |
|
$ |
79,860 |
|
$ |
304,930 |
|
$ |
298,074 |
Natural gas royalties |
|
|
3,856 |
|
|
11,441 |
|
|
37,432 |
|
|
18,512 |
NGL royalties |
|
|
17,867 |
|
|
17,404 |
|
|
69,315 |
|
|
56,745 |
Total oil and gas royalties |
|
$ |
96,721 |
|
$ |
108,705 |
|
$ |
411,677 |
|
$ |
373,331 |
|
|
|
|
|
|
|
|
|
||||
Realized prices (1): |
|
|
|
|
|
|
|
|
||||
Oil ($/Bbl) |
|
$ |
59.48 |
|
$ |
65.14 |
|
$ |
64.69 |
|
$ |
75.80 |
Natural gas ($/Mcf) |
|
$ |
0.66 |
|
$ |
2.01 |
|
$ |
1.73 |
|
$ |
1.17 |
NGL ($/Bbl) |
|
$ |
17.92 |
|
$ |
18.25 |
|
$ |
19.81 |
|
$ |
21.60 |
Equivalents ($/Boe) |
|
$ |
29.33 |
|
$ |
34.10 |
|
$ |
34.18 |
|
$ |
39.87 |
| ___________________________ | ||||
| (1) | Term |
|
Definition |
|
|
Bbl |
|
One stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil, condensate or NGL. |
|
|
Boe |
|
One barrel of oil equivalent. |
|
|
MBbls |
|
One thousand barrels of crude oil, condensate or NGL. |
|
|
MBoe |
|
One thousand Boe. |
|
|
MBoe/d |
|
One thousand Boe per day. |
|
|
Mcf |
|
One thousand cubic feet of natural gas. |
|
|
MMcf |
|
One million cubic feet of natural gas. |
|
|
NGL |
|
Natural gas liquids. Hydrocarbons found in natural gas that may be extracted as liquefied petroleum gas and natural gasoline. |
|
Water Services and Operations Activity
The table below provides financial and operational data for water sales and produced water royalties:
|
|
Three Months Ended |
|
Years Ended |
||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||
Water volumes (in MBbls) (1): |
|
|
|
|
|
|
|
|
||||
Water sales |
|
|
92,072 |
|
|
71,332 |
|
|
278,564 |
|
|
269,281 |
Produced water royalties |
|
|
443,578 |
|
|
400,804 |
|
|
1,566,588 |
|
|
1,257,246 |
|
|
|
|
|
|
|
|
|
||||
Water volumes in barrels per day (in MBbls/d) (2): |
|
|
|
|
|
|
|
|
||||
Water sales |
|
|
1,001 |
|
|
775 |
|
|
763 |
|
|
736 |
Produced water royalties |
|
|
4,822 |
|
|
4,357 |
|
|
4,292 |
|
|
3,435 |
|
|
|
|
|
|
|
|
|
||||
Water revenue (in thousands): |
|
|
|
|
|
|
|
|
||||
Water sales |
|
$ |
60,733 |
|
$ |
44,578 |
|
$ |
169,701 |
|
$ |
150,724 |
Produced water royalties |
|
$ |
33,513 |
|
$ |
32,268 |
|
$ |
124,218 |
|
$ |
104,123 |
| ___________________________ | ||
| (1) | MBbl = 1 thousand barrels of water. |
|
(2) |
MBbl/d = 1 thousand barrels of water per day. |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts) (unaudited)
|
|
Three Months Ended |
|
Years Ended |
||||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||
Oil and gas royalties |
|
$ |
96,721 |
|
|
$ |
108,705 |
|
$ |
411,677 |
|
|
$ |
373,331 |
Water sales |
|
|
60,733 |
|
|
|
44,578 |
|
|
169,701 |
|
|
|
150,724 |
Produced water royalties |
|
|
33,513 |
|
|
|
32,268 |
|
|
124,218 |
|
|
|
104,123 |
Easements and other surface-related income |
|
|
20,612 |
|
|
|
16,715 |
|
|
91,775 |
|
|
|
73,257 |
Land sales |
|
|
— |
|
|
|
819 |
|
|
819 |
|
|
|
4,388 |
Total revenues |
|
|
211,579 |
|
|
|
203,085 |
|
|
798,190 |
|
|
|
705,823 |
|
|
|
|
|
|
|
|
|
||||||
Expenses: |
|
|
|
|
|
|
|
|
||||||
Salaries and related employee expenses |
|
|
14,894 |
|
|
|
14,387 |
|
|
57,925 |
|
|
|
53,621 |
Water service-related expenses |
|
|
17,523 |
|
|
|
16,428 |
|
|
53,528 |
|
|
|
46,124 |
General and administrative expenses |
|
|
6,424 |
|
|
|
5,591 |
|
|
23,780 |
|
|
|
34,483 |
Depreciation, depletion and amortization |
|
|
21,930 |
|
|
|
14,963 |
|
|
62,533 |
|
|
|
25,162 |
Ad valorem and other taxes |
|
|
1,562 |
|
|
|
2,625 |
|
|
8,263 |
|
|
|
7,295 |
Total operating expenses |
|
|
62,333 |
|
|
|
53,994 |
|
|
206,029 |
|
|
|
166,685 |
|
|
|
|
|
|
|
|
|
||||||
Operating income |
|
|
149,246 |
|
|
|
149,091 |
|
|
592,161 |
|
|
|
539,138 |
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
(690 |
) |
|
|
— |
|
|
(690 |
) |
|
|
— |
Other income, net |
|
|
3,209 |
|
|
|
6,088 |
|
|
18,858 |
|
|
|
39,683 |
Income before income taxes |
|
|
151,765 |
|
|
|
155,179 |
|
|
610,329 |
|
|
|
578,821 |
Income tax expense |
|
|
28,419 |
|
|
|
33,941 |
|
|
128,953 |
|
|
|
124,861 |
Net income |
|
$ |
123,346 |
|
|
$ |
121,238 |
|
$ |
481,376 |
|
|
$ |
453,960 |
|
|
|
|
|
|
|
|
|
||||||
Net income per share of common stock |
|
|
|
|
|
|
|
|
||||||
Basic |
|
$ |
1.79 |
|
|
$ |
1.76 |
|
$ |
6.98 |
|
|
$ |
6.58 |
Diluted |
|
$ |
1.79 |
|
|
$ |
1.76 |
|
$ |
6.97 |
|
|
$ |
6.57 |
|
|
|
|
|
|
|
|
|
||||||
Weighted average number of shares of common stock outstanding |
|
|
|
|
|
|
|
|
||||||
Basic |
|
|
68,938,230 |
|
|
|
68,954,649 |
|
|
68,949,240 |
|
|
|
68,958,591 |
Diluted |
|
|
69,020,805 |
|
|
|
69,030,773 |
|
|
69,027,492 |
|
|
|
69,059,252 |
SEGMENT OPERATING RESULTS
(dollars in thousands) (unaudited)
|
|
Three Months Ended |
|||||||||||||||||||
|
|
December 31,
|
|
September 30,
|
|||||||||||||||||
|
|
Land and Resource Management |
|
Water Services and Operations |
|
Consolidated |
|
Land and Resource Management |
|
Water Services and Operations |
|
Consolidated |
|||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Oil and gas royalties |
|
$ |
96,721 |
|
|
$ |
— |
|
|
$ |
96,721 |
|
|
$ |
108,705 |
|
$ |
— |
|
$ |
108,705 |
Water sales |
|
|
— |
|
|
|
60,733 |
|
|
|
60,733 |
|
|
|
— |
|
|
44,578 |
|
|
44,578 |
Produced water royalties |
|
|
— |
|
|
|
33,513 |
|
|
|
33,513 |
|
|
|
— |
|
|
32,268 |
|
|
32,268 |
Easements and other surface-related income |
|
|
16,662 |
|
|
|
3,950 |
|
|
|
20,612 |
|
|
|
12,741 |
|
|
3,974 |
|
|
16,715 |
Land sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
819 |
|
|
— |
|
|
819 |
Total revenues |
|
|
113,383 |
|
|
|
98,196 |
|
|
|
211,579 |
|
|
|
122,265 |
|
|
80,820 |
|
|
203,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Salaries and related employee expenses |
|
|
7,457 |
|
|
|
7,437 |
|
|
|
14,894 |
|
|
|
7,298 |
|
|
7,089 |
|
|
14,387 |
Water service-related expenses |
|
|
— |
|
|
|
17,523 |
|
|
|
17,523 |
|
|
|
— |
|
|
16,428 |
|
|
16,428 |
General and administrative expenses |
|
|
3,966 |
|
|
|
2,458 |
|
|
|
6,424 |
|
|
|
3,431 |
|
|
2,160 |
|
|
5,591 |
Depreciation, depletion and amortization |
|
|
17,276 |
|
|
|
4,654 |
|
|
|
21,930 |
|
|
|
10,453 |
|
|
4,510 |
|
|
14,963 |
Ad valorem and other taxes |
|
|
1,551 |
|
|
|
11 |
|
|
|
1,562 |
|
|
|
2,614 |
|
|
11 |
|
|
2,625 |
Total operating expenses |
|
|
30,250 |
|
|
|
32,083 |
|
|
|
62,333 |
|
|
|
23,796 |
|
|
30,198 |
|
|
53,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
|
83,133 |
|
|
|
66,113 |
|
|
|
149,246 |
|
|
|
98,469 |
|
|
50,622 |
|
|
149,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
|
(552 |
) |
|
|
(138 |
) |
|
|
(690 |
) |
|
|
— |
|
|
— |
|
|
— |
Other income, net |
|
|
2,527 |
|
|
|
682 |
|
|
|
3,209 |
|
|
|
4,827 |
|
|
1,261 |
|
|
6,088 |
Income before income taxes |
|
|
85,108 |
|
|
|
66,657 |
|
|
|
151,765 |
|
|
|
103,296 |
|
|
51,883 |
|
|
155,179 |
Income tax expense |
|
|
15,566 |
|
|
|
12,853 |
|
|
|
28,419 |
|
|
|
22,536 |
|
|
11,405 |
|
|
33,941 |
Net income |
|
$ |
69,542 |
|
|
$ |
53,804 |
|
|
$ |
123,346 |
|
|
$ |
80,760 |
|
$ |
40,478 |
|
$ |
121,238 |
SEGMENT OPERATING RESULTS (Continued)
(dollars in thousands) (unaudited)
|
|
Years Ended |
|||||||||||||||||||
|
|
December 31,
|
|
December 31,
|
|||||||||||||||||
|
|
Land and Resource Management |
|
Water Services and Operations |
|
Consolidated |
|
Land and Resource Management |
|
Water Services and Operations |
|
Consolidated |
|||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Oil and gas royalties |
|
$ |
411,677 |
|
|
$ |
— |
|
|
$ |
411,677 |
|
|
$ |
373,331 |
|
$ |
— |
|
$ |
373,331 |
Water sales |
|
|
— |
|
|
|
169,701 |
|
|
|
169,701 |
|
|
|
— |
|
|
150,724 |
|
|
150,724 |
Produced water royalties |
|
|
— |
|
|
|
124,218 |
|
|
|
124,218 |
|
|
|
— |
|
|
104,123 |
|
|
104,123 |
Easements and other surface-related income |
|
|
78,230 |
|
|
|
13,545 |
|
|
|
91,775 |
|
|
|
63,074 |
|
|
10,183 |
|
|
73,257 |
Land sales |
|
|
819 |
|
|
|
— |
|
|
|
819 |
|
|
|
4,388 |
|
|
— |
|
|
4,388 |
Total revenues |
|
|
490,726 |
|
|
|
307,464 |
|
|
|
798,190 |
|
|
|
440,793 |
|
|
265,030 |
|
|
705,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Salaries and related employee expenses |
|
|
29,184 |
|
|
|
28,741 |
|
|
|
57,925 |
|
|
|
27,493 |
|
|
26,128 |
|
|
53,621 |
Water service-related expenses |
|
|
— |
|
|
|
53,528 |
|
|
|
53,528 |
|
|
|
— |
|
|
46,124 |
|
|
46,124 |
General and administrative expenses |
|
|
14,358 |
|
|
|
9,422 |
|
|
|
23,780 |
|
|
|
25,531 |
|
|
8,952 |
|
|
34,483 |
Depreciation, depletion and amortization |
|
|
44,555 |
|
|
|
17,978 |
|
|
|
62,533 |
|
|
|
10,968 |
|
|
14,194 |
|
|
25,162 |
Ad valorem and other taxes |
|
|
8,218 |
|
|
|
45 |
|
|
|
8,263 |
|
|
|
7,257 |
|
|
38 |
|
|
7,295 |
Total operating expenses |
|
|
96,315 |
|
|
|
109,714 |
|
|
|
206,029 |
|
|
|
71,249 |
|
|
95,436 |
|
|
166,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
|
394,411 |
|
|
|
197,750 |
|
|
|
592,161 |
|
|
|
369,544 |
|
|
169,594 |
|
|
539,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
|
(552 |
) |
|
|
(138 |
) |
|
|
(690 |
) |
|
|
— |
|
|
— |
|
|
— |
Other income, net |
|
|
14,926 |
|
|
|
3,932 |
|
|
|
18,858 |
|
|
|
31,707 |
|
|
7,976 |
|
|
39,683 |
Income before income taxes |
|
|
408,785 |
|
|
|
201,544 |
|
|
|
610,329 |
|
|
|
401,251 |
|
|
177,570 |
|
|
578,821 |
Income tax expense |
|
|
86,370 |
|
|
|
42,583 |
|
|
|
128,953 |
|
|
|
86,350 |
|
|
38,511 |
|
|
124,861 |
Net income |
|
$ |
322,415 |
|
|
$ |
158,961 |
|
|
$ |
481,376 |
|
|
$ |
314,901 |
|
$ |
139,059 |
|
$ |
453,960 |
NON-GAAP PERFORMANCE MEASURES AND DEFINITIONS
In addition to amounts presented in accordance with GAAP, we also present certain supplemental non-GAAP performance measurements. These measurements are not to be considered more relevant or accurate than the measurements presented in accordance with GAAP. In compliance with the requirements of the SEC, our non-GAAP measurements are reconciled to net income, the most directly comparable GAAP performance measure. For all non-GAAP measurements, neither the SEC nor any other regulatory body has passed judgment on these non-GAAP measurements.
EBITDA, Adjusted EBITDA and Free Cash Flow
EBITDA is a non-GAAP financial measurement of earnings before interest expense, taxes, depreciation, depletion and amortization. The purpose of presenting EBITDA is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis.
The purpose of presenting Adjusted EBITDA is to highlight earnings without non-cash activity such as share-based compensation and other non-recurring or unusual items, if applicable. Additionally, Adjusted EBITDA is a metric used by the compensation committee of our Board to evaluate the Company’s performance in determining the short-term and long-term incentive compensation of our Named Executive Officers on an annual basis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation less pension curtailment and settlement gain. The pension curtailment and settlement gain are related to a buyout by a third party of defined benefit obligations under our pension plan and the subsequent freezing of our pension plan, both of which occurred in the fourth quarter of 2024. We have excluded the pension curtailment and settlement gain from the calculation of Adjusted EBITDA as such gain is a non-recurring item and is not related to our core business.
The purpose of presenting free cash flow is to provide investors a metric to measure the funds available for investing in future acquisitions and returning capital to our stockholders through dividends and share repurchases after current income tax expense and purchases of fixed assets. Additionally, free cash flow is a metric used by the compensation committee of our Board to evaluate the Company’s performance in determining the short-term and long-term incentive compensation of our Named Executive Officers. To calculate free cash flow, net income is adjusted by adding back income tax expense, depreciation, depletion and amortization and employee share-based compensation, less the cash outflows of current income tax expenses, purchases of fixed assets and pension curtailment and settlement gain.
We have presented EBITDA, Adjusted EBITDA and free cash flow because we believe that these metrics are useful supplements to net income in analyzing the Company’s operating performance, ability to fund future acquisitions, ability to return capital to our stockholders and explaining how our Named Executive Officers are compensated. Our definitions of EBITDA, Adjusted EBITDA and free cash flow may differ from computations of similarly titled measures of other companies.
The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended December 31, 2025 and September 30, 2025 and for the years ended December 31, 2025 and December 31, 2024 (in thousands):
|
|
Three Months Ended |
|
Years Ended |
|||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|||||
Net income |
|
$ |
123,346 |
|
$ |
121,238 |
|
$ |
481,376 |
|
$ |
453,960 |
|
Add: |
|
|
|
|
|
|
|
|
|||||
Interest expense |
|
|
690 |
|
|
— |
|
|
690 |
|
|
— |
|
Income tax expense |
|
|
28,419 |
|
|
33,941 |
|
|
128,953 |
|
|
124,861 |
|
Depreciation, depletion and amortization |
|
|
21,930 |
|
|
14,963 |
|
|
62,533 |
|
|
25,162 |
|
EBITDA |
|
|
174,385 |
|
|
170,142 |
|
|
673,552 |
|
|
603,983 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|||||
Employee share-based compensation |
|
|
3,756 |
|
|
3,493 |
|
|
13,817 |
|
|
11,364 |
|
Pension curtailment and settlement gain |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,616 |
) |
Adjusted EBITDA |
|
$ |
178,141 |
|
$ |
173,635 |
|
$ |
687,369 |
|
$ |
610,731 |
|
The following table presents a reconciliation of net income to free cash flow for the three months ended December 31, 2025 and September 30, 2025 and for the years ended December 31, 2025 and December 31, 2024 (in thousands):
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||
Net income |
|
$ |
123,346 |
|
|
$ |
121,238 |
|
|
$ |
481,376 |
|
|
$ |
453,960 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
|
28,419 |
|
|
|
33,941 |
|
|
|
128,953 |
|
|
|
124,861 |
|
Depreciation, depletion and amortization |
|
|
21,930 |
|
|
|
14,963 |
|
|
|
62,533 |
|
|
|
25,162 |
|
Employee share-based compensation |
|
|
3,756 |
|
|
|
3,493 |
|
|
|
13,817 |
|
|
|
11,364 |
|
Pension curtailment and settlement gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,616 |
) |
Current income tax expense |
|
|
(26,968 |
) |
|
|
(30,166 |
) |
|
|
(122,398 |
) |
|
|
(120,257 |
) |
Purchases of fixed assets |
|
|
(28,653 |
) |
|
|
(18,601 |
) |
|
|
(59,531 |
) |
|
|
(29,696 |
) |
(Increase) decrease in accounts payable related to purchases of fixed assets |
|
|
(2,973 |
) |
|
|
(2,005 |
) |
|
|
(6,417 |
) |
|
|
273 |
|
Free cash flow |
|
$ |
118,857 |
|
|
$ |
122,863 |
|
|
$ |
498,333 |
|
|
$ |
461,051 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218569843/en/
Investor Relations
IR@TexasPacific.com
Source: Texas Pacific Land Corporation
