Texas Pacific Land's Q3 revenue rises on increase in oil and gas royalties

Texas Pacific Land

Yesterday 21:57

Overview
US land and royalty owner's Q3 revenue reached record high, driven by oil and gas royalties
Q3 adjusted EBITDA rose and beat analyst expectations
Company cites robust development activity, higher oil prices, and increased produced water royalties

Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers
OIL AND GAS ROYALTIES - Record oil and gas royalty revenue driven by robust development activity and elevated oil prices, per CEO Tyler Glover
PRODUCED WATER ROYALTIES - Record produced water royalty volumes and revenues supported by growing Permian produced water trends
PIPELINE EASEMENT REVENUE - Strong pipeline easement revenue as operators expanded midstream infrastructure development

Company press release: ID:nBw7k67TQa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
 
$167.37 mln
 
Q3 Adjusted EBITDA
Beat
$238.37 mln
$217.50 mln (2 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Texas Pacific Land Corporation is $544.30, about 63.9% above its November 3 closing price of $332.00
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 43 three months ago

Reuters Recommended Reads
Nov 2 - Topaz Energy Q3 adjusted profit beats estimates as royalty production rises
Nov 2 - Black Stone Minerals Q3 adjusted core profit ease past estimates
     

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)