TPL · 10-Q · 2026Q3 · Full report

Permian Basin Activity

Texas Pacific Land Corp · 2026-11-04 · Importance 9 · Surprise 6 · In source text

The Permian Basin spans approximately 86,000 square miles across southeastern New Mexico and western Texas and was producing more than 6.8 million barrels of oil per day, according to the U.S. Energy Information Administration. E&P companies continued drilling and development at a measured pace; average rig counts were lower for the nine months ended September 30, 2026 than in the prior-year period, while improved drilling and completion efficiencies allowed aggregate production to grow. Management noted that operator decisions and basin activity influence oil and gas royalties, produced water royalties, water sales, and other surface-related income.

Key facts

• Average Waha Hub natural gas price was negative $0.70 per mmbtu for the nine months ended September 30, 2026, versus $1.16 for the same period of 2025. source
• Average WTI Cushing oil price was $85.25 per barrel for the nine months ended September 30, 2026, versus $67.31 for the same period of 2025. source
• The Waha Hub has at times experienced significant negative price differentials relative to Henry Hub since mid-2022, partly due to growing Permian Basin natural gas production and limited pipeline takeaway capacity. source
• Operators are developing midstream infrastructure to provide additional natural gas takeaway capacity, while the future effect on basis differentials depends on future production and other factors. source
• Despite lower average rig counts in the nine months ended September 30, 2026 versus 2025, improved drilling and completion efficiencies allowed Permian Basin operators in aggregate to grow production. source
• The Permian Basin covers approximately 86,000 square miles across southeastern New Mexico and western Texas, and production is currently in excess of 6.8 million barrels per day. source
• Average Henry Hub natural gas price was $3.49 per mmbtu for the nine months ended September 30, 2026, versus $3.45 for the same period of 2025. source
• Texas Pacific Land Corp owns approximately 896,000 surface acres, principally concentrated in the Permian Basin. source

Impact estimates