TPL · 10-Q · 2026Q2 · Full report

Commodity Market Conditions

Texas Pacific Land Corp · 2026-08-05 · Importance 79 · Surprise 66

Average WTI prices increased approximately 24% in the first six months of 2026 versus the prior-year period, reaching more than $90 per barrel from March through early June amid conflict in Iran and disruptions to the Strait of Hormuz. Oil prices remained volatile in July, with future pricing dependent on the conflict’s duration, energy infrastructure damage, and the Strait’s reopening. Average Henry Hub natural gas prices increased approximately 4%, supported by improved supply-demand balances, expanded LNG capacity, and stronger industrial and power demand. Permian natural gas continued to face negative Waha Hub differentials at times because of rising local production and limited pipeline takeaway capacity, although additional midstream infrastructure is being developed.

Key facts

• Average WTI oil prices for the six months ended June 30, 2026 increased by approximately 24% compared to the same period last year. source
• Waha Hub has at times experienced significant negative price differentials relative to Henry Hub since mid-2022 due in part to growing local Permian Basin natural gas production and limited pipeline takeaway capacity. source
• Global oil prices increased to over $90 per barrel from March through early-June 2026. source