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Texas Pacific Land (TPL) Q2 2025 earnings results (second quarter 2025)

10-Q filed Aug 6, 2025

Texas Pacific Land (TPL) reported revenue of $188M for the second quarter 2025 (Q2 2025), +9% from a year earlier and -4% from the quarter before. Operating margin was 76.6%, net earnings $116M (61.9% of revenue).

Revenue$188M
Year over year+9%
Quarter over quarter-4%
Operating margin76.6%
Net earnings$116M

Texas Pacific Land, Q2 2025: revenue $188M (+9% year over year), operating margin 76.6%, net earnings $116M, operating cash flow $121M. The chart follows the revenue to costs, profit and cash.

Q2 2025AmountQ/QY/Y
Revenue$188M-4%+9%
Operating profit$144M-4%+8%
Net earnings$116M-4%+1%
Operating cash flow$121M-23%+23%
Free cash flow$118M-20%+28%

What changed

Revenue was $187.5M in Q2 2025, up 9% year over year and down 4% from the previous quarter. Oil and gas royalties was the largest line at 51% of revenue. Easements and other surface-related income added $19.7M year over year (up 119%), 129% of the total change. Water sales declined 37%.

Operating profit was $143.8M, a 76.6% margin (down 0.7 points year over year). Of the extra revenue versus a year earlier, 69% reached operating profit, below the 77% margin then. Total costs grew 12% against revenue growth of 9%. The fastest-growing cost line was Other operating costs (+15%). Net earnings were $116.1M, up 1% year over year. The effective tax rate was 22.0%.

Operating cash flow was $120.9M (up 23% year over year), 104% of net earnings. Non-cash charges added back $13.7M of depreciation and amortization and $3.5M of share-based compensation. Working capital and other items used $12.4M. Capital expenditures of $3.3M left free cash flow of $117.6M.

Questions

What was Texas Pacific Land's revenue in the second quarter 2025?

Texas Pacific Land (TPL) reported revenue of $188M for the second quarter 2025 (Q2 2025), +9% from a year earlier and -4% from the quarter before.

Was Texas Pacific Land profitable in the second quarter 2025?

Operating profit was $144M (76.6% of revenue) and net earnings $116M.

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Source: Texas Pacific Land 10-Q on SEC EDGAR.