Texas Pacific Land just printed its best quarter ever, without a dollar of AI revenue
The royalty machine set records on $44.97 per-Boe realizations while the $122.7 million data-center land bet sits in the filing as spending, not income.
Vincent Jiang · 2 min read
A record quarter, printed on oil
Texas Pacific Land Corporation−9.94% — Texas Pacific Land Corporation, down 9.94 percent today (TPL), one of the largest land and royalty owners in Texas, posted its strongest quarter ever on November 4: consolidated revenue of $273.4 million, net income of $167.4 million and free cash flow of $170.3 million, all records 1. Revenue has now set a record in every quarter of 2026, and the third quarter's came in 34.6% above a year earlier 12.
Revenue has set a record in every quarter of 2026
Data
| Consolidated revenue | |
|---|---|
| Q3 '24 | $173.56M |
| Q4 '24 | $185.78M |
| Q1 '25 | $195.98M |
| Q2 '25 | $187.54M |
| Q3 '25 | $203.09M |
| Q4 '25 | $211.58M |
| Q1 '26 | $236.82M |
| Q2 '26 | $246.06M |
| Q3 '26 | $273.39M |
The engine is oil and gas. Royalty revenue of $167.3 million rode 42.3 thousand barrels of oil equivalent a day, realized at $44.97 per Boe against $42.17 in the second quarter 1. Produced water royalties hit a record $41.4 million on 5.5 million barrels a day 1. Not one booked dollar of the quarter's revenue came from data centers or power 1.
Every booked dollar of Q3 revenue came from oilfield activity
- Oil and gas royalties$167.28M61.3%
- Produced water royalties$41.39M15.1%
- Easements and other surface income$36.18M13.2%
- Water sales$28.44M10.4%
- Land sales$0.11M0%
Data
| Part | Q3 2026 revenue | Share |
|---|---|---|
| Oil and gas royalties | $167.28M | 61.3% |
| Produced water royalties | $41.39M | 15.1% |
| Easements and other surface income | $36.18M | 13.2% |
| Water sales | $28.44M | 10.4% |
| Land sales | $0.11M | 0% |
The AI pivot is a purchase order
The data-center story exists in the filing only as spending. TPL has bought $122.7 million of land this year in Shackelford and Jones Counties "in connection with our data center and power generation initiatives" 1, the pivot The Inference followed on October 31. The Chevron agreement supplies land and brackish water to Project Kilby, a large power plant Chevron is building to serve a customer data center in Reeves County 1.
TPL sold land into that project for $42.5 million and holds the exclusive right to source aquifer water for it, with land payments due through 2046 3. Chief executive Tyler Glover's own framing: the efforts "continue to progress, and we are steadfastly working to advance those into meaningful commercial outcomes" 1. Nothing has been billed.
Kilby is real where it counts
Chevron, through a venture with Joulent, the firm grown out of Engine No. 1, signed a 20-year take-or-pay power agreement with Microsoft in June for roughly 2.67 gigawatts of on-site gas turbines, first power targeted for 2028 4. If the plant is built, TPL's acreage and water right sit under a paying customer.
The counterweight sits in Austin
Governor Greg Abbott has suspended new environmental permits for data centers while state agencies audit grid and water use, and Project Kilby's final investment decision could slip from this year to 2027 5. Chevron's finance chief says the 2028 target holds 6. The market already prices some doubt: TPL shares fell 15.1% over the three months to late October 3. Management takes questions at 9:30 a.m 1. Central on November 5 1. Until a data-center dollar shows up in the revenue table, this record belongs to oil, and the AI option stays unexercised.
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