Texas Pacific Land CorpTPL

Texas Pacific Land Corp Segments Disclosure

10-KFiled Feb 18, 20263 min read
Business Segment Reporting
 
During the periods presented, we reported our financial performance based on the following reportable segments: Land and Resource Management and Water Services and Operations. We eliminate inter-segment revenues and expenses, if any, upon consolidation. There were no inter-segment revenues for the years ended December 31, 2025, 2024, and 2023.

The Land and Resource Management segment encompasses the business of managing our approximately 882,000 surface acres of land and our approximately 224,000 NRA of oil and gas royalty interests, principally concentrated in the Permian Basin. The revenue streams of this segment consist primarily of royalties from oil and gas, revenues from easements and commercial leases, and land and material sales.

The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin. The revenue streams of this segment primarily consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties.
The following table presents segment financial results for Land and Resource Management (“LRM”) and Water Service and Operations (“WSO”) and the reconciliation to consolidated (“Cons”) financial results for the years ended December 31, 2025, 2024, and 2023 (in thousands):
 Years Ended December 31,
 202520242023
LRMWSOConsLRMWSOConsLRMWSOCons
Revenues:
Oil and gas royalties$411,677 $— $411,677 $373,331 $— $373,331 $357,394 $— $357,394 
Water sales— 169,701 169,701 — 150,724 150,724 — 112,203 112,203 
Produced water royalties— 124,218 124,218 — 104,123 104,123 — 84,260 84,260 
Easements and other surface-related income78,230 13,545 91,775 63,074 10,183 73,257 67,905 3,027 70,932 
Land sales819 — 819 4,388 — 4,388 6,806 — 6,806 
Total revenues490,726 307,464 798,190 440,793 265,030 705,823 432,105 199,490 631,595 
Expenses:
Salaries and related employee expenses29,184 28,741 57,925 27,493 26,128 53,621 21,945 21,439 43,384 
Water service-related expenses— 53,528 53,528 — 46,124 46,124 — 33,566 33,566 
General and administrative expenses14,358 9,422 23,780 25,531 8,952 34,483 39,078 7,372 46,450 
Depreciation, depletion and amortization44,555 17,978 62,533 10,968 14,194 25,162 3,073 11,684 14,757 
Ad valorem and other taxes8,218 45 8,263 7,257 38 7,295 7,382 3 7,385 
Total operating expenses96,315 109,714 206,029 71,249 95,436 166,685 71,478 74,064 145,542 
Operating income394,411 197,750 592,161 369,544 169,594 539,138 360,627 125,426 486,053 
Interest expense(552)(138)(690)— — — — — — 
Other income, net14,926 3,932 18,858 31,707 7,976 39,683 30,384 1,124 31,508 
Income before income taxes408,785 201,544 610,329 401,251 177,570 578,821 391,011 126,550 517,561 
Income tax expense86,370 42,583 128,953 86,350 38,511 124,861 84,305 27,611 111,916 
Net income$322,415 $158,961 $481,376 $314,901 $139,059 $453,960 $306,706 $98,939 $405,645 

Interest income by segment is included in other income, net in the table above.

The following tables present purchases of fixed assets, total assets, and property, plant and equipment, net by segment (in thousands):
Years Ended December 31,
202520242023
Purchases of Fixed Assets:
Land and resource management$10,282 $279 $241 
Water services and operations55,666 29,144 15,190 
Total purchases of fixed assets$65,948 $29,423 $15,431 
 December 31, 2025December 31, 2024
Assets:  
Land and resource management$1,332,180 $1,024,188 
Water services and operations291,098 223,832 
Total consolidated assets$1,623,278 $1,248,020 
Property, plant and equipment, net:  
Land and resource management$7,336 $4,805 
Water services and operations157,202 117,773 
Total consolidated property, plant and equipment, net$164,538 $122,578 

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 23, 2022
2020Feb 25, 2021

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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