Texas Pacific Land misses its core profit forecast for the first quarter due to lower oil prices
Texas Pacific Land, a land and royalty company focused on the Permian region, missed Wall Street's expectations for its first-quarter core profits on Wednesday as lower oil prices offset increased production.
Brent crude futures dropped on average by a year in the first quarter on fears that President Donald Trump’s trade policy will slow economies worldwide and slash demand for energy, while OPEC+ increases supply.
The Trump administration's tariffs have led to macroeconomic insecurity, which has caused oil and gas producers to cut production.
Diamondback Energy announced earlier this week that it would cut its production forecast for the current year due to the uncertainty. It also stated that at current commodity prices the U.S. production of oil is nearing the tipping point.
Texas Pacific reported that the realized price of oil for the quarter fell 7.5% year-over-year to $71.05 per barrel.
The company's quarterly net profit rose by 5.4% to $120.7 million, compared to a year ago. This was due to higher natural gas prices and production.
Natural gas production increased 37.4%, to 5.23 billion cubic foot, and prices rose about 80%, to $3.63 per 1,000 cubic feet.
The data compiled by LSEG shows that the landowner's adjusted core profit for the quarter ending March 31 was $169.4M, compared to Wall Street expectations of $180M. Reporting by Tanay in Bengaluru, and editing by Alan Barona
(source: Reuters)
