Texas Pacific Land's core quarterly profit exceeds estimates due to stronger water sales

Texas Pacific Land exceeded Wall Street expectations for the fourth-quarter core profits on Wednesday as higher water sales and production offset lower oil prices.

The company generates revenue from fixed fees, such as those for construction materials, water treatment or sourcing services, and oil and natural gas royalty interests.

Last year, Texas Pacific entered into an agreement with Bolt Data & Energy, a data and energy infrastructure 'firm to develop and enable large scale data?center campuses across its operating territories.

Permian land and royalty company reported its share of production was 37,500 barrels of oil equivalent per?day for the quarter ending December 31. This is up from 29,100 boepd one year ago. Total revenue for the quarter ended December 31 increased from $185.8 to $211.6 millions.

The company's average realized oil price was $29.33, down from $37.93 per barrel last year. This was due to a 9% drop in Benchmark Brent crude prices. Concerns about oversupply and tariffs outweighed the geopolitical risk.

LSEG data shows that the landowner's adjusted core profit was $178.1m for the quarter ended December 31st, compared to Wall Street expectations of $173.6m. Reporting by Pranav Mathur in Bengaluru, editing by Alan Barona

(source: Reuters)