Texas Pacific Land reports rise in quarterly profit on higher royalties
Aug 6 (Reuters) - Texas Pacific Land TPL.N reported a rise in second-quarter core profit on Wednesday, as higher royalty revenues offset weakness in oil prices.
The results come as the energy industry braces for the impact of U.S. President Donald Trump's tariff plans, which have contributed to oil price weakness and raised concerns over global demand.
The company generates revenue from fixed fees for land use, construction material sales, water sourcing or treatment services and oil and gas royalty interests.
Total revenue for the second quarter increased to $187.5 million from $172.3 million a year earlier, driven by a more than 6% rise in oil and gas royalties to $95 million.
Brent crude LCOc1 averaged 20% lower in the second quarter compared to the same period last year, weighed down by U.S. tariffs, their impact on global economic growth, increased OPEC+ supply and geopolitical tensions.
Texas Pacific's average realized price came in at $63.99 per barrel of oil in the quarter, marking a 21% decline from the $80.93 a barrel it realized last year.
The company reported a net income of $116.1 million, or $5.05 per share, for the second quarter ended June 30, compared with $114.6 million, or $4.98 per share, a year earlier.
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