TPL · Earnings call · 2026Q2T · Full report

Guidance / Outlook

Texas Pacific Land Corp · 2026-08-05 · Importance 42 · Surprise 24

Management reaffirmed fiscal 2026 capital expenditure guidance of $65 million to $75 million. Year-to-date capital expenditures were $29 million, with second-half spending planned for colocation cooling and waste-heat capture studies at the Orla Phase 2b desalination facility. Management expects Delaware Basin activity to improve over the next few quarters as substantial new gas pipeline capacity enters service and local in-basin gas price differentials improve.

Key facts

• TPL has price escalators built into existing contracts and management expects pore space to become more valuable over time; transportation royalties are typically a little less than pore space injection royalties.