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TEXAS PACIFIC LAND CORPORATION 2024 ANNUAL REPORT
Letter to Stockholders Dear Fellow Stockholders, Fiscal year 2024 marked another chapter of exceptional performance and major milestones for TPL. Our active management approach focusing on extracting maximum value from TPL s vast royalty, water, and surface assets across the core regions of the Permian Basin continues to deliver impressive returns. Although commodity prices during 2024 were well below the highs of recent years, TPL s unique and resilient business model continued to drive record growth across multiple facets of our enterprise. Our performance did not go unrecognized as the Company became a new member of the S&P 500 Index and achieved a record high share price in 2024. A Year of Significant Milestones TPL s existence as a public company can be traced back to 1888 (in fact, TPL is currently the 7th longest-listed company on the New York Stock Exchange) as the predecessor trust emerged from the bankruptcy of Texas and Pacific Railway Company. Over its first 100 years, TPL was a passively managed liquidating trust. Beginning around 2010, with the advent of modern-day horizontal drilling and hydraulic fracturing, new life was instilled into the Permian Basin. As the decade progressed and oil and gas shale development and technology quickly improved, the Permian s full potential was unleashed. Simultaneously, TPL made a consequential pivot away from the liquidation model and towards active management. Ultimately, TPL s active management approach combined with a massive Permian footprint has generated incredible profits for the Company and its stockholders. The approach has been enormously successful. So much in fact, that in June 2024, TPL joined the S&P MidCap 400 Index, and a few months later, in November 2024, TPL was selected to join the S&P 500 Index. Financially, 2024 was outstanding. Total revenues reached $706 million, a 12% increase from 2023, driven by robust contributions across all of TPL s segments. TPL s business continues to operate efficiently with fiscal year 2024 adjusted EBITDA and net income margins of 87% and 64%, respectively. The Company maintains a fortress balance sheet with no debt and $370 million of cash and cash equivalents at year-end. These results highlight the resilience of our business model, which benefits from multiple highmargin cash flow streams without the capital intensity of traditional energy companies. In addition, in 2024, we completed two significant acquisitions of mineral and royalty interests for approximately $400 million, adding approximately 11,600 of high-quality net royalty acres to our portfolio. We also acquired over four thousand surface acres in the core of the Midland Basin, expanding our footprint in a strategic area. During the year, TPL announced progress towards developing produced water desalination technology. After successfully completing an initial desalination pilot, TPL is now advancing with the next phase of our larger developmental desalination facility, which will have an initial capacity of 10,000 barrels of water per day. This initiative is designed to address the critical need for sustainable produced water solutions in the Permian. OUR BUSINESS SEGMENTS Land and Resource Management For the full-year 2024, total segment revenues were approximately $441 million, comprised of oil and gas royalty revenue of approximately $373 million, easements and other surface-related income of approximately $63 million, and land sales of approximately $4 million. Oil and gas royalty revenues were supported by record royalty production of approximately 26,800 barrels of oil equivalent ( BOE ) per day, benefitting from a combination of robust development activity on our royalty acreage and highquality mineral and royalty acquisitions. TPL realized an average price of $39.87 per BOE, a 6% decrease when compared to the 2023 realization, due to lower benchmark oil and natural gas. The increase in easements and other surface-related income was driven primarily by pipeline easements, caliche and other sales, and commercial leases.
Water Services and Operations Our Water Services and Operations segment provides critical water solutions for upstream and midstream customers throughout the Permian Basin. TPL s significant land ownership and water infrastructure investments give us the ability to capitalize on sourcing water to operators for drilling and completion activities. Furthermore, demand for produced water disposal on and around our surface remains strong as higher oil and gas production generates a commensurate increase in produced water volumes. For the full-year 2024, our Water Service and Operations segment set new records with revenues of $265 million and net income of $139 million. Both water sales and produced water royalties each attained record revenues driven by volume growth in excess of 30%. Water sales were supported by TPL leveraging its water infrastructure size and scale to drive greater market capture. Growing Permian produced water volumes and TPL s ongoing efforts to negotiate and execute agreements with operators for surface and pore space access drove our produced water royalties revenues to $104 million, which represents a 24% year-over-year increase. CAPITAL ALLOCATION AND STOCKHOLDER RETURNS In 2024, we returned approximately $350 million through dividends. TPL increased its regular dividend for the 21st consecutive year and paid a special dividend of $10.00 per share, the largest special dividend in TPL s history. Furthermore, we repurchased approximately $29 million of our common stock. LOOKING AHEAD With a leading royalties, water, and surface footprint overlapping core regions of the Permian, TPL remains well-positioned to capture future opportunities. Our balance sheet and high-margin cash flow streams allow TPL to succeed through economic and commodity price cycles yet still capture significant upside when the cycle inflects upward. As the Permian will continue to play a major role in supplying the world with reliable energy, TPL s investments across numerous growth avenues position the Company to play a commensurately important and profitable role in this longer-term growth trend. Thank you for placing your confidence in TPL. Sincerely, Rhys J. Best Chairman of the Board
 • shareholder letter icon 9/26/2025 Letter Continued (Full PDF)
 • stockholder letter icon 10/10/2023 TPL Stockholder Letter
 • stockholder letter icon 9/24/2024 TPL Stockholder Letter
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 • Benford's Law Stocks icon TPL Benford's Law Stock Score = 89


TPL Shareholder/Stockholder Letter Transcript:

TEXAS PACIFIC LAND CORPORATION
2024 ANNUAL REPORT


Letter to Stockholders
Dear Fellow Stockholders,
Fiscal year 2024 marked another chapter of exceptional performance and major
milestones for TPL. Our active management approach focusing on extracting
maximum value from TPL   s vast royalty, water, and surface assets across the core
regions of the Permian Basin continues to deliver impressive returns. Although
commodity prices during 2024 were well below the highs of recent years, TPL   s unique
and resilient business model continued to drive record growth across multiple facets
of our enterprise. Our performance did not go unrecognized as the Company became
a new member of the S&P 500 Index and achieved a record high share price in 2024.
A Year of Significant Milestones
TPL   s existence as a public company can be traced back to 1888 (in fact, TPL is currently
the 7th longest-listed company on the New York Stock Exchange) as the predecessor
trust emerged from the bankruptcy of Texas and Pacific Railway Company. Over its
first 100 years, TPL was a passively managed liquidating trust. Beginning around
2010, with the advent of modern-day horizontal drilling and hydraulic fracturing, new
life was instilled into the Permian Basin. As the decade progressed and oil and gas
shale development and technology quickly improved, the Permian   s full potential was
unleashed. Simultaneously, TPL made a consequential pivot away from the liquidation
model and towards active management. Ultimately, TPL   s active management
approach combined with a massive Permian footprint has generated incredible profits
for the Company and its stockholders. The approach has been enormously successful.
So much in fact, that in June 2024, TPL joined the S&P MidCap 400 Index, and a few
months later, in November 2024, TPL was selected to join the S&P 500 Index.
Financially, 2024 was outstanding. Total revenues reached $706 million, a 12% increase
from 2023, driven by robust contributions across all of TPL   s segments. TPL   s business
continues to operate efficiently with fiscal year 2024 adjusted EBITDA and net income
margins of 87% and 64%, respectively. The Company maintains a fortress balance sheet
with no debt and $370 million of cash and cash equivalents at year-end. These results
highlight the resilience of our business model, which benefits from multiple highmargin cash flow streams without the capital intensity of traditional energy companies.
In addition, in 2024, we completed two significant acquisitions of mineral and royalty
interests for approximately $400 million, adding approximately 11,600 of high-quality
net royalty acres to our portfolio. We also acquired over four thousand surface acres in
the core of the Midland Basin, expanding our footprint in a strategic area.
During the year, TPL announced progress towards developing produced water
desalination technology. After successfully completing an initial desalination pilot, TPL
is now advancing with the next phase of our larger developmental desalination facility,
which will have an initial capacity of 10,000 barrels of water per day. This initiative is
designed to address the critical need for sustainable produced water solutions in the
Permian.
OUR BUSINESS SEGMENTS
Land and Resource Management
For the full-year 2024, total segment revenues were approximately $441 million,
comprised of oil and gas royalty revenue of approximately $373 million, easements
and other surface-related income of approximately $63 million, and land sales of
approximately $4 million. Oil and gas royalty revenues were supported by record royalty
production of approximately 26,800 barrels of oil equivalent (   BOE   ) per day, benefitting
from a combination of robust development activity on our royalty acreage and highquality mineral and royalty acquisitions. TPL realized an average price of $39.87 per
BOE, a 6% decrease when compared to the 2023 realization, due to lower benchmark
oil and natural gas. The increase in easements and other surface-related income was
driven primarily by pipeline easements, caliche and other sales, and commercial leases.

Water Services and Operations
Our Water Services and Operations segment provides critical water solutions
for upstream and midstream customers throughout the Permian Basin. TPL   s
significant land ownership and water infrastructure investments give us the
ability to capitalize on sourcing water to operators for drilling and completion
activities. Furthermore, demand for produced water disposal on and around
our surface remains strong as higher oil and gas production generates a
commensurate increase in produced water volumes.
For the full-year 2024, our Water Service and Operations segment set new
records with revenues of $265 million and net income of $139 million. Both
water sales and produced water royalties each attained record revenues
driven by volume growth in excess of 30%. Water sales were supported by
TPL leveraging its water infrastructure size and scale to drive greater market
capture. Growing Permian produced water volumes and TPL   s ongoing
efforts to negotiate and execute agreements with operators for surface
and pore space access drove our produced water royalties revenues to $104
million, which represents a 24% year-over-year increase.
CAPITAL ALLOCATION AND STOCKHOLDER RETURNS
In 2024, we returned approximately $350 million through dividends. TPL
increased its regular dividend for the 21st consecutive year and paid a special
dividend of $10.00 per share, the largest special dividend in TPL   s history.
Furthermore, we repurchased approximately $29 million of our common
stock.
LOOKING AHEAD
With a leading royalties, water, and surface footprint overlapping core
regions of the Permian, TPL remains well-positioned to capture future
opportunities. Our balance sheet and high-margin cash flow streams allow
TPL to succeed through economic and commodity price cycles yet still
capture significant upside when the cycle inflects upward. As the Permian
will continue to play a major role in supplying the world with reliable energy,
TPL   s investments across numerous growth avenues position the Company
to play a commensurately important and profitable role in this longer-term
growth trend.
Thank you for placing your confidence in TPL.
Sincerely,
Rhys J. Best
Chairman of the Board



shareholder letter icon 9/26/2025 Letter Continued (Full PDF)
 

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