Description

Texas Pacific’s Big Break: Could 10,000+ New Acres Unlock A Data Center Powerhouse?

Texas Pacific Land Corporation reported record quarterly financial performance in the second quarter of 2026, highlighted by notable growth across multiple operational and revenue streams. The company posted total revenues of approximately $246 million, reflecting a 4% sequential and 31% year-over-year increase. Adjusted EBITDA rose 19% sequentially and 30% year-over-year to $216 million, translating to an 88% margin. Free cash flow increased by 14% sequentially and 20% year-over-year to $156 million. The improved earnings and cash flow were supported primarily by a 7% sequential and 20% year-over-year increase in oil and gas royalty production, averaging 39,700 barrels of oil equivalent per day, and record produced water royalty volumes. The oil and gas royalty segment benefited from an unhedged position, allowing full exposure to a favorable oil price environment. Produced water royalties reached 4.