TPL · Earnings call · 2026Q2T · Full report

Market Demand Trends

Texas Pacific Land Corp · 2026-08-05 · Importance 52 · Surprise 56

Oil and gas royalty production averaged approximately 39,700 barrels of oil equivalent per day, up 20% year-over-year, while produced water royalty volumes reached 4.9 million barrels per day, up 15% year-over-year. Produced water growth was driven by strong demand for TPL's in-basin and out-of-basin pore space. Water sales volumes increased 38% year-over-year to 663,000 barrels per day, despite a 19% sequential decline. Management said the quarter's lower oil mix reflected gas-rich development and expects oil cuts to return to above 40% over the long term.

Key facts

• Energy supermajors and large independent hyperscalers and AI labs have shown strong interest related to the commercial and operational opportunities related to colocation and output water streams.
• Interest in produced water and data center use is huge and TPL is in discussions with a couple of hyperscalers and AI labs about using the freeze technology for direct chip cooling.