TPL · Earnings call · 2026Q2T · Full report

Macroeconomic Factors Impact

Texas Pacific Land Corp · 2026-08-05 · Importance 21 · Surprise 40

Management attributed the 19% sequential decline in second-quarter water sales volumes to weak in-basin natural-gas prices. Operators shifted some development away from the Delaware Basin, reducing near-term water sales activity. TPL expects new gas pipeline capacity over the next few quarters to improve local price differentials and support a shift of development back toward the Delaware Basin.

Key facts

• Second quarter water sales volumes have been impacted by weak in-basin natural gas prices as operators have shifted some development away from the Delaware Basin.
• TPL's unhedged royalty position allowed the company to benefit fully from the strong oil price environment.