Texas Pacific misses quarterly core profit estimates on lower oil prices

Texas Pacific Land's adjusted core profit for the third quarter was below Wall Street expectations on Wednesday as lower oil prices offset gains from increased production.

Brent crude prices averaged $68 per barrel in the third-quarter, a decline of over 13% year-over-year, as OPEC+ increased production and signs of a slowing of global demand continued downward pressure on price.

Texas Pacific reported that its realized oil price during the quarter was down 10.3% from last year at $34.10 per barrel.

Royalties on oil and gas production grew to $108.7 millions, up from $94.4 million in the previous year.

Texas Pacific had customers such as ConocoPhillips, Occidental Petroleum, and Chevron as of December 31, 2024.

Texas Pacific reported a third-quarter revenue totaling $203.1 million, up from $173.6 millions during the same period last year.

After the bell, shares of the company fell by almost 1%.

According to data compiled and reported by LSEG, the landowner reported adjusted earnings before taxes, interest, depreciation, and amortization (before adjustments for inflation) of $173.6 millions, compared to analysts' average estimates of $178.6 million. (Reporting by Dharna Bafna in Bengaluru; Editing by Alan Barona)

(source: Reuters)