Texas Pacific misses quarterly core profit estimates on lower oil prices

Nov 5 (Reuters) - Texas Pacific Land TPL.N missed Wall Street expectations for third-quarter adjusted core profit on Wednesday, as lower oil prices outweighed gains from higher production.

Brent crude LCOc1 averaged about $68 a barrel in the third quarter, marking a year-on-year decline of more than 13%, as increased output from OPEC+ and signs of slowing global demand continued to exert downward pressure on prices.

Texas Pacific said its realized price for oil during the quarter was down 10.3% year-over-year at $34.10 per barrel.

The Permian-focused land and royalty company's share of quarterly production rose nearly 30% to 36.3 million barrels of oil from a year earlier, while royalties from oil and gas production came to $108.7 million, compared with $94.4 million last year.

As of December 31 2024, Texas Pacific counted energy heavyweights such as Chevron CVX.N, Occidental Petroleum OXY.N and ConocoPhillips COP.N as its customers.

Texas Pacific reported third-quarter revenue of $203.1 million, compared with $173.6 million during the same period a year earlier.

Shares of the company were down nearly 1% after the bell.

The landowner reported an adjusted earnings before interest, taxes, depreciation and amortization of $173.6 million for the quarter ended September 30, compared with analysts' average estimate of $178 million, according to data compiled by LSEG.