TPL · 10-Q · 2026Q2 · Full report

Operating Expense Trends

Texas Pacific Land Corp · 2026-08-05 · Importance 46 · Surprise 30 · From source text

Six-month operating expenses increased 21.2% to $108.7 million from $89.7 million, compared with six-month revenue growth of 25.9%. Salaries and related employee expenses increased $1.9 million to $30.5 million because of annual market compensation adjustments and higher headcount. General and administrative expenses increased $4.9 million to $16.6 million, including $1.1 million of additional rent and office-related costs and $1.0 million of additional legal and professional fees in Land and Resource Management. Water service-related expenses increased $6.3 million to $25.9 million, principally because water sales volumes increased 16.4%, while depreciation, depletion and amortization increased $5.0 million to $30.7 million because of acquired royalty interests and new water assets.

Key facts

• Total operating expenses were $54.2 million for the three months ended June 30, 2026 and $43.8 million for the three months ended June 30, 2025. source
• Total operating expenses were $108.7 million for the six months ended June 30, 2026 and $89.7 million for the six months ended June 30, 2025. source
• Recorded interest expense of $0.8 million for three months ended June 30, 2026 related to Credit Facility; no interest expense in comparative period. source
• The condensed consolidated financial statements have been prepared in accordance with GAAP source
• There have been no material changes to our critical accounting policies or in the estimates and assumptions underlying those policies from those provided in Part II, Item 7 of our 2025 Annual Report source
• For further information regarding recently issued accounting pronouncements, see Note 2, “Summary of Significant Accounting Policies” in the notes to the condensed consolidated financial statements included in Part I, Item 1. source

Impact estimates