TPL posts record Q1 revenue of $236.8M, closes $42.5M data center land deal, appoints Horizon Kinetics co-CEO to board

Texas Pacific Land entered into an agreement with Horizon Kinetics, a significant shareholder group, to nominate Peter Doyle as a board director candidate at the 2026 annual meeting. The nomination is subject to approval by the nominating and corporate governance committee. This type of agreement typically follows engagement between a company and an activist or significant investor, and represents a negotiated board seat rather than a contested proxy fight.

Texas Pacific Land Corp announced its financial results for the first quarter ended March 31, 2026, through a press release issued May 6, 2026. The 8-K itself does not contain the actual financial figures; those are furnished in Exhibit 99.1. This is a standard quarterly earnings disclosure under Item 2.02.

Texas Pacific Land appointed Peter Doyle to its Board of Directors effective May 5, 2026. He will stand for re-election at the 2026 Annual Meeting and was assigned to the strategic acquisitions committee, suggesting involvement in potential M&A activities.

Peter Doyle brings extensive investment management experience as co-CEO of Horizon Kinetics and chairman/co-CEO of FRMO Corp. His background in portfolio management, research, and investment committees aligns with his appointment to TPL's strategic acquisitions committee.

Texas Pacific Land Corp announced the appointment of Mr. Doyle to its Board of Directors.

TPL reported Q1 2026 net income of $142.9 million ($2.07 per diluted share) on total revenues of $236.8 million, both quarterly records. The revenue increase was driven by higher oil and gas royalty revenue ($118.2 million), a $20.9 million land sale, and strong water-related revenues ($46.9 million water sales, $33.5 million produced water royalties). Oil and gas royalty production averaged 37.1 thousand Boe per day at a realized price of $37.06 per Boe.

The Board declared a quarterly cash dividend of $0.60 per share, payable June 15, 2026 to stockholders of record as of June 1, 2026. This maintains the quarterly dividend rate from prior quarters.

TPL's 10,000 barrel per day produced water desalination R&D test facility in Orla, Texas is nearing completion and expected to receive its first inlet barrels within weeks. This represents progress on a key emerging opportunity in produced water treatment and reuse.

TPL reported Q1 2026 total revenues of $236.8 million, up 12% sequentially from Q4 2025's $211.6 million, driven by higher oil and gas royalties ($118.2M vs $96.7M) and a $20.9M land sale. Adjusted EBITDA increased 2% to $181.4 million, though the margin compressed to 77% from 84% due to the lower-margin land sale. Free cash flow rose 15% to $136.4 million, reflecting strong operational performance and improved working capital management.

TPL's net royalty production reached 124.4 thousand barrels of oil equivalent per day (mboe/d) in Q1 2026, up 7% from Q4 2025's 116.1 mboe/d and up 38% year-over-year from Q1 2025's 90.2 mboe/d. The Delaware Basin contributed the majority of growth, with production rising to 76.6 mboe/d from 68.4 mboe/d in the prior quarter. This production growth directly drives higher royalty revenues, which reached $118.2 million in Q1 2026.

The Water Service and Operations segment generated $83.3 million in revenue for Q1 2026, down 15% from Q4 2025's $98.2 million, reflecting typical seasonal patterns in completion activity. Adjusted EBITDA declined to $60.5 million from $72.8 million, and net income fell to $42.0 million from $53.8 million. Despite the sequential decline, the segment maintained strong profitability with a 52% net income margin for FY 2025.

TPL ended Q1 2026 with $247.6 million in cash and zero debt, up from $144.8 million at year-end 2025. The company maintains a $500 million undrawn credit facility. TPL's capital allocation strategy prioritizes returning capital to shareholders through dividends and buybacks while maintaining financial flexibility for strategic investments. The company has returned $689 million cumulatively to shareholders since 2017 through dividends and repurchases.

Doyle's appointment follows the sudden passing of Murray Stahl, who was presumably a prior Horizon Kinetics representative on the Board. Doyle stated his intention to preserve Stahl's legacy and advocate for all shareholders while noting TPL remains a major holding across Horizon Kinetics' investment vehicles.

In addition to his Board seat, Doyle was appointed to TPL's strategic acquisitions committee, giving the largest shareholder direct involvement in the company's acquisition strategy and decisions.