--- title: "Texas Pacific Land just printed its best quarter ever, without a dollar of AI revenue" description: "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." publisher: "The Inference" section: "Power" published: 2026-11-05T00:09:14.527Z modified: 2026-11-05T00:09:14.527Z canonical: https://theinference.org/article/texas-pacific-land-just-printed-its-best-quarter-ever-without-a-dollar-of-ai-revenue language: en keywords: "Texas Pacific Land, Earnings, Oil And Gas, Data Centers, Power" --- # 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. ## A record quarter, printed on oil [Texas Pacific Land Corporation](https://theinference.org/markets/companies/texas-pacific-land) (TPL), one of the largest land and royalty owners in Texas, [posted its strongest quarter ever on November 4](https://www.sec.gov/Archives/edgar/data/1811074/000181107426000075/0001811074-26-000075-index.htm): 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 [1][2]. *Chart: **Revenue has set a record in every quarter of 2026** Column chart of TPL quarterly consolidated revenue from Q3 2024 to Q3 2026, rising from $173.6 million to a record $273.4 million, with the latest column highlighted and annotated +34.6% vs Q3 '25.* *Consolidated quarterly revenue, USD millions, Q3 2024 through Q3 2026. Q3 2026 from the November 4, 2026 8-K; earlier quarters from TPL's SEC filings. [1][2]* 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]. *Chart: **Every booked dollar of Q3 revenue came from oilfield activity** Stack bar splitting TPL's Q3 2026 revenue of $273.4 million into oil and gas royalties $167.3M, produced water royalties $41.4M, easements and other surface income $36.2M, water sales $28.4M and land sales $0.1M.* *Composition of Q3 2026 consolidated revenue of $273.4 million, USD millions, per the segment revenue table in the November 4, 2026 8-K. [1]* ## 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](https://theinference.org/article/texas-pacific-land-asks-shareholders-to-bring-it-home-to-texas-as-ai-money-reaches-its-land). 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](https://theinference.org/markets/people/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](https://www.fool.com/investing/2026/08/29/chevron-microsoft-data-center-deal-big-earning/) 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](https://thenextweb.com/news/texas-politics-delay-chevron-microsoft-data-centre) 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](https://www.msn.com/en-us/money/technology/chevron-maintains-2028-data-center-power-target-despite-texas-pause/ar-AA2gGtND) [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. ## Takeaway TPL set revenue, net income and free cash flow records in Q3 2026 entirely on oil, gas and water royalties, while its data-center and power pivot exists only as $122.7 million of land spending until Chevron's Project Kilby reaches a decision. ## Sources 1. [SEC EDGAR, Texas Pacific Land Corporation Form 8-K with Exhibit 99.1 press release, third quarter 2026 results, filed 4 November 2026](https://www.sec.gov/Archives/edgar/data/1811074/000181107426000075/0001811074-26-000075-index.htm) 2. [Texas Pacific Land Corporation, quarterly figures from its SEC filings, retrieved 4 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001811074) 3. [Zacks Investment Research via The Globe and Mail, Could Project Kilby Unlock a Data Center Growth Path for TPL?, 28 October 2026](https://www.theglobeandmail.com/investing/markets/stocks/CVX/pressreleases/8504909/could-project-kilby-unlock-a-data-center-growth-path-for-tpl/) 4. [The Motley Fool, Chevron's Microsoft Data Center Deal Was a Bigger Story Than Its Earnings. Here's Why., 29 August 2026](https://www.fool.com/investing/2026/08/29/chevron-microsoft-data-center-deal-big-earning/) 5. [TNW, Texas politics may delay Chevron data centre decision, Semafor reports, 1 October 2026](https://thenextweb.com/news/texas-politics-delay-chevron-microsoft-data-centre) 6. [Zacks Investment Research via MSN, Chevron maintains 2028 data center power target despite Texas pause, 3 November 2026](https://www.msn.com/en-us/money/technology/chevron-maintains-2028-data-center-power-target-despite-texas-pause/ar-AA2gGtND) --- Texas Pacific Land just printed its best quarter ever, without a dollar of AI revenue — The Inference. Canonical: https://theinference.org/article/texas-pacific-land-just-printed-its-best-quarter-ever-without-a-dollar-of-ai-revenue