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Texas Pacific Land's Q3 revenue rises on increase in oil and gas royalties 

By Reuters News


Overview

  • US land and royalty owner's Q3 revenue reached record high, driven by oil and gas royalties

  • Q3 adjusted EBITDA rose and beat analyst expectations

  • Company cites robust development activity, higher oil prices, and increased produced water royalties


Outlook

  • Company did not provide specific financial guidance for upcoming quarters or full year in its press release


Result Drivers

  • OIL AND GAS ROYALTIES - Record oil and gas royalty revenue driven by robust development activity and elevated oil prices, per CEO Tyler Glover

  • PRODUCED WATER ROYALTIES - Record produced water royalty volumes and revenues supported by growing Permian produced water trends

  • PIPELINE EASEMENT REVENUE - Strong pipeline easement revenue as operators expanded midstream infrastructure development


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

$167.37 mln

Q3 Adjusted EBITDA

Beat

$238.37 mln

$217.50 mln (2 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

  • Wall Street's median 12-month price target for Texas Pacific Land Corporation is $544.30, about 63.9% above its November 3 closing price of $332.00

  • The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 43 three months ago


Reuters Recommended Reads

  • Nov 2 - Topaz Energy Q3 adjusted profit beats estimates as royalty production rises

  • Nov 2 - Black Stone Minerals Q3 adjusted core profit ease past estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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