Texas Pacific Land Corporation Investor Presentation August 2025 NYSE: TPL
Disclaimers This presentation has been designed to provide general information about Texas Pacific Land Corporation and its subsidiaries (TPL or the Company). Any information contained or referenced herein is suitable only as an…
2Q 2025 Summary Financial and Operating Update 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 O&G Royalty Production Total Water Sales Volumes1 Selected consolidated financials (MM): (mboe/d) (mbbl/d) 33.2 Oil and gas royalties 89.8 94.4…
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Value Creation Culture and Proven Performance Average Annual Total Return Since 2017 (Compounded annual return from 1/1/2017 to 12/31/2024) 37% 18% (Composite) 15% WTI Oil 4% fsfsdfsfs S&P Oil & Gas (1%) E&P Index…
Unique Permian Basin Pure-Play Positioned to capture Balance Sheet Strength Efficient conversion of upside revenues to cash No Debt 611 Million 461 Million Cash Balance of 2024 Adjusted EBITDA 2024 Free Cash Flow 544 Million…
Texas Pacific Land Corporation (NYSE: TPL) One of the largest landowners in Texas with approximately 874,000 acres located in the Permian Basin TPL by the Numbers1 TPL was originally organized in 1888 as a business trust to manage the…
TPL History and Evolution 1871 1888 1927 2010s 2016 2017 2021 Texas & Pacific Texas & Pacific Railway TPL sub-share certificates bankruptcy leads to the listed on NYSE. TPL is The Permian Basin begins New management Railway is…
Unmatched Permian Footprint Combined With Premier Operators Royalty Acreage Surface and Easement Acreage Combined Royalty & Surface Revenue Contribution1 (FY 2024) 26% Other 38% Super- majors Large-cap independents…
Permian Basin is a World-Class Resource Permian vs Major Oil Producer Nations Estimated Remaining Well Locations with US Rig Counts by Oil…
Capital Allocation Framework Focused on Maximizing Shareholder Value Return Capital Protect Capital Invest Capital Return substantial amounts of capital Maintain strong balance sheet to Balance capital returns with through dividends…
Focused on Allocating Capital Towards Highest Returns Growing Free Cash Flow per Share is the Key to Generating Value We believe the key to maximizing shareholder value is to TPL FY 2024 Allocation of Operating Cash Flow maximize…
TPLs Combined Surface and Royalties Is Unique Comparison of Significant Revenue Generation by Asset Type Performance FY 2024 versus FY 2022 78% Substantial surface and water related revenue growth despite O&G price 52% declines…
TPL Maintains Top Tier Profitability Margins TPL Land & TPL Water 64% FY 2024 net Consolidated TPL 71% FY 2024 net Resource 52% FY 2024 net Services & income margin income margin Management income margin Operations Net Income…
Investment Highlights Permian Basin is a world class resource Midland and Delaware Basins each possess tens of thousands of future undrilled well inventory Unique combination of surface and royalty ownership generates revenue…
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Jay Gould Founder - Texas and Pacific Railway 18
Survey team (June 1930) Survey marker (northwest corner of Section 39, Block 62, Township 2) El Capitan peak Culberson County Orla Field Camp for survey team (June 1930) Camp Delaware Survey team in sand dunes near Guadalupe…
TPL Currently Has Four Primary Revenue Streams Surface Leases, Easements and O&G Royalties Water Sales Produced Water Royalties Material (SLEM) Primarily own Non-Participating Royalty Interests Surface acreage provides multiple…
Oil and Gas Royalties Overview and Management Producing Horizontal Wells (Gross) on TPL How TPL is Delivering Value Revenue Mechanics and Management Oil and gas royalties represent real property Oil and Gas Royalty Acreage 7,000 By…
TPL Royalty Production and Inventory Detail TPL Inventory (net) TPL Producing Wells (net) TPL Net Royalty Production 24.3 95.4 (mboe/d) 90.2 22.1 22.6 22.2 86.8 79.2 26.8 19.8 19.8 3.0 5.4 73.3 25.7 3.4 70.2 24.7 5.1 67.2 23.4…
TPL source water infrastructure 23
TPL source water pond 24
Raw land does not monetize itself Surface Estate Ownership (i) Operational and legal expertise of surface estate ownership within the oil and gas industry and (ii) proactive execution are Leveraging Ownership of Raw Surface into Cash…
Surface, Leases, Easements and Materials (SLEM) Overview and Management TPL SLEM Revenue Breakdown (FY 2024) Revenue Mechanics and Management How TPL is Delivering Value Pipeline easements Leveraging technology such as advanced…
Water Sales Overview and Management Revenue Mechanics and Management TPL Water Sales Volumes1 How TPL is Delivering Value (mbbl/d) 736 TPL has developed the largest source water Surface estate ownership includes access to…
Water Sales Asset Map TPL Source Water Network 800+ sourced & treatment capacity mbbl/d 34.2 storage capacity mmbbl 445 source water pipelines miles Average Fluid Used per Delaware Well Completion (mbbls) 486 490…
Produced Water Royalties Overview and Management Revenue Mechanics and Management TPL Produced Water Royalty Volumes How TPL is Delivering Value (mbbl/d) Produced water refers to water that flows from a 3,435 Intentionally…
Produced Water Royalties Delaware Upstream Activity + High Water-Cuts to Drive Produced Water Volume Growth Water vs Oil Production Average Well in Delaware Basin1 (mbbl) First 12 months production First 36 months production…
TPL Captures Revenue Over the Well Lifecycle E&P/upstream operators procure regulatory permits; prepare future well 1 Permit site and develop infrastructure Fixed fees for use of TPLs surface for the construction and operation of…
Permians Massive Resource Potential Enormous Acreage Extent and Stacked Pay Potential Enormous Acreage Extent Midland and Delaware Basins Greater Permian Basin Extent 26,000 17,000,000 square miles acres Combined Midland and…
TPL Innovation Produced Water Desalination and Beneficial Reuse Produced Water Desalination Key Milestones Commercial Purpose Proof of concept: freeze desalination works and pathway to TPL Desalination Project Overview affordable…
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Appendix
Summary of Highest-Visibility Inventory 100% NRI Permitted Wells 100% NRI DUC Wells 100% NRI Completed Wells 83% of Permits are drilled within 6 months 26% of DUCs are completed within 6 months 95% of Completed Wells are listed as…
The Basics of Royalties Ownership Key Terms and Comparison: Royalties/Minerals vs Lease Interest Illustrative Economic Model Minerals/Royalties vs Lease Interest Royalties / Minerals Lease Interest Capital Costs and Revenue /…
Water Sales Operated vs Royalty/Non-Operated Business Model Royalty / Non-Operated Source Water Model (i.e., pre-TPWR) FAQ TPL formed TPWR in July 2017 Pre-TPWR development, TPL had negotiated History various royalty agreements…
Compensation Incentives Aligned With Shareholder Value Creation Mix (% of Total)1 Intent Key Performance Dimensions Fixed (16%)1 16% Deliver competitive fixed cash Based on individual role, level of Base Salary compensation for…
Sustainability is Embedded in Our Strategy Key Opportunities Government policies incentivize sustainable energy projects (e.g., carbon capture, utilization and storage) and Carbon Management TPL can reposition its business to take…
Our Environmental Management Initiatives Implementation of Spill Prevention, Control, and Countermeasure plan and protocol for water assets, which are equipped with tech / containment protections Incidents and Spill Thorough tracking…
ESG Update Key Statistics Emissions vs Revenue Category 2020 2021 2022 2023 2024 Emissions Scope 1 CO2 Emissions 18,987 16,159 10,590 13,819 14,945 706 667 Scope 2 CO2 Emissions 5,110 6,596 11,492 10,572 14,663 632 Total Scope 1 +…
Royalty Key Terms Net Royalty Acres Implied Avg Net Revenue Focus Area Gross Royalty Acres Average Royalty Gross DSU Acres (8/8th) Interest per well Delaware Basin 338,600 19,300 5.7 % 965,500 2.0 % Midland Basin 328,200 4,800 1.5 %…
Non-GAAP Reconciliations - Consolidated Year ended December 31, Three months ended, ( in millions) 2018 2019 2020 2021 2022 2023 2024 2Q24 3Q24 4Q24 1Q25 2Q25 Net Income 209.7 318.7 176.1 270.0 446.4 405.6 454.0 114.6 106.6 118.4 120.7…
Non-GAAP Reconciliations - Segment Land and Resource Management Water Services and Operations Quarterly Annual Quarterly Annual ( in millions) 2Q24 3Q24 4Q24 1Q25 2Q25 2023 2024 2Q24 3Q24 4Q24 1Q25 2Q25 2023 2024 Net income 80.1 71.9…
Historical Financial Summary Year ended December 31, Three months ended, ( in millions) 2022 2023 2024 June 30, 2024 March 31, 2025 June 30, 2025 Total Acres 874,366 868,446 873,136 869,045 873,136 873,923 Revenues: Oil and gas…
Texas Pacific Land Corporation 1700 Pacific Avenue, Suite 2900 Dallas, Texas 75201
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