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Texas Pacific Land announces a rise in profit for the quarter on higher royalties

Texas Pacific Land announced a higher core profit for the second quarter on Wednesday as higher royalties revenues offset lower oil prices.

The results are coming as the energy sector braces itself for the impact of U.S. president Donald Trump's proposed tariff plans that have weakened oil prices and caused concern about global demand.

The company earns money from land usage fees, construction materials sales, water treatment or sourcing services, and oil and natural gas royalty interests.

The total revenue for the second quarterly increased from $172.3 to $187.5 millions, largely due to a 6% increase in oil and natural gas royalties.

Brent crude was 20% lower than the previous year's second quarter, mainly due to U.S. Tariffs, their impact upon global economic growth, and increased OPEC+ production.

Texas Pacific's average realized oil price for the third quarter was $63.99, a decline of 21% from $80.93 per barrel realized last year.

The company reported net income of $116.1 millions, or $5.05 a share, for its second quarter ending June 30. This compares to $114.6millions, or $4.98 a share, one year ago. (Reporting from Vallari Srivastava in Bengaluru, Sumit Saha in New Delhi and Katha Kaalia in Bengaluru. Editing by Mohammed Safi Shamsi.)

(source: Reuters)