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Share-Based Compensation | 6 Months Ended
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Jun. 30, 2026
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation | Share-Based Compensation The Company grants share-based compensation to employees under the Texas Pacific Land Corporation 2021 Incentive Plan (the “2021 Plan”) and to its non-employee directors under the Texas Pacific Land Corporation 2021 Non-Employee Director Stock and Deferred Compensation Plan (the “2021 Directors Plan” and, together with the 2021 Plan, the “Plans”). As of June 30, 2026, share-based compensation granted under the Plans included RSAs, RSUs and PSUs. RSUs granted under the 2021 Plan vest in one-third annual increments over three years, and PSUs granted under the 2021 Plan cliff vest at the end of three years if the applicable performance metrics are achieved (as discussed further below). RSAs granted under the 2021 Directors Plan vest in full on the date of grant. Incentive Plan for Employees The maximum aggregate number of shares of Common Stock that may be issued under the 2021 Plan is 675,000 shares, which may consist, in whole or in part, of authorized and unissued shares (if any), treasury shares, or shares reacquired by the Company in any manner. As of June 30, 2026, 320,816 shares of Common Stock remained available under the 2021 Plan for future grants. The following table summarizes activity related to RSUs granted under the 2021 Plan for the six months ended June 30, 2026:
|  |  |  |  |  | Six Months Ended June 30, 2026 |  |
|  |  |  |  |  | Number of RSUs |  | Weighted-Average Grant-Date Fair Value per Share |  |  |  |  |  |  |  |
Nonvested at beginning of period |  |  |  |  |  | 52,704 |  |  | $ | 277 |  |  |  |  |  |  |  |  |
Granted (1) |  |  |  |  |  | 23,290 |  |  | 432 |  |  |  |  |  |  |  |  |
Vested (2) |  |  |  |  |  | (27,075) |  |  | 246 |  |  |  |  |  |  |  |  |
Cancelled and forfeited |  |  |  |  |  | (58) |  |  | 452 |  |  |  |  |  |  |  |  |
Nonvested at end of period |  |  |  |  |  | 48,861 |  |  | $ | 368 |  |  |  |  |  |  |  |  |
(1)RSUs vest in one-third annual increments over a three-year period. (2)Of the 27,075 RSUs that vested during the six months ended June 30, 2026, 10,633 RSUs were surrendered by employees to the Company upon vesting to settle tax withholding obligations. The following table summarizes activity related to PSUs granted under the 2021 Plan for the six months ended June 30, 2026:
|  | Six Months Ended June 30, 2026 |  |
|  | Number of Target PSUs |  | Weighted-Average Grant-Date Fair Value per Share |  |  |  |
Nonvested at beginning of period |  | 53,232 |  |  | $ | 285 |  |  |  |  |
Granted (1) |  | 13,872 |  |  | 557 |  |  |  |  |
Vested (2) |  | (16,668) |  |  | 260 |  |  |  |  |
Cancelled and forfeited |  | — |  |  | — |  |  |  |  |
Nonvested at end of period |  | 50,436 |  |  | $ | 368 |  |  |  |  |
(1)The PSUs were granted on February 15, 2026 and include 6,936 RTSR PSUs (defined below) (based on target) with a grant date fair value of $681 per share and 6,936 FCF PSUs (defined below) (based on target) with a grant date fair value of $432 per share. If the maximum performance levels described in the PSU agreements are achieved, the actual number of shares that will ultimately vest under the PSU agreements will exceed target PSUs by 100% (i.e., an aggregate of 13,872 additional shares would be issued). (2)Vested PSUs are based on the original number of PSUs granted (i.e., target units). The actual number of shares delivered upon vesting of PSUs during the six months ended June 30, 2026 totaled 27,925 shares, of which 11,492 shares were surrendered by employees to the Company upon vesting to settle tax withholding obligations. Each PSU has a value equal to one share of Common Stock. The PSUs will vest three years after grant if certain performance metrics are met, as follows: 50% of the PSUs may be earned based on the Company’s relative total stockholder return (“RTSR”) over the applicable three-year measurement period compared to the SPDR® S&P® Oil & Gas Exploration & Production ETF (“XOP Index”), and 50% of the PSUs may be earned based on the cumulative free cash flow per share (“FCF”) over the three-year vesting period. Because the RTSR PSUs are market-based awards, their grant date fair value was determined using a Monte Carlo simulation model that uses the same input assumptions as the Black-Scholes model to determine the expected potential ranking of the Company against the XOP Index (i.e., the probability of satisfying the market condition defined in the awards). Expected volatility in the model was estimated based on the volatility of historical stock prices over a period matching the expected term of the awards. The risk-free interest rate was based on U.S. Treasury yield constant maturities for a term matching the expected term of the awards. The inputs for the Monte Carlo simulation model are designated as Level 2 within the fair value hierarchy. Equity Plan for Non-Employee Directors The maximum aggregate number of shares of Common Stock that may be issued under the 2021 Directors Plan is 90,000 shares, which may consist, in whole or in part, of authorized and unissued shares, treasury shares, or shares reacquired by the Company in any manner. As of June 30, 2026, 64,407 shares of Common Stock remained available under the 2021 Directors Plan for future grants. The following table summarizes activity related to the RSAs under the 2021 Directors Plan for the six months ended June 30, 2026:
|  | Six Months Ended June 30, 2026
|  | Number of RSAs |  | Weighted-Average Grant-Date Fair Value per Share
Nonvested at beginning of period |  | — |  |  | $ | — |
Granted (1)(2) |  | 4,686 |  |  | 305 |
Vested |  | (4,686) |  |  | 305 |
Cancelled and forfeited |  | — |  |  | — |
Nonvested at end of period |  | — |  |  | $ | — |
(1)RSAs vest in full on the date of grant. (2)Of the 4,686 RSAs that were granted during the six months ended June 30, 2026, 1,108 RSAs were deferred at the election of certain directors pursuant to the 2021 Directors Plan until the year following the director’s termination as a director. Share-Based Compensation Expense The following table summarizes our share-based compensation expense by line item in the condensed consolidated statements of income (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2026 |  | 2025 |  | 2026 |  | 2025
Salaries and related employee expenses (employee awards) |  | $ | 4,279 |  |  | $ | 3,485 |  |  | $ | 8,021 |  |  | $ | 6,568 |
General and administrative expenses (director awards) |  | 109 |  |  | — |  |  | 1,430 |  |  | 1,314 |
Total share-based compensation expense (1) |  | $ | 4,388 |  |  | $ | 3,485 |  |  | $ | 9,451 |  |  | $ | 7,882 |
(1)The Company recognized a tax benefit of $0.9 million and $0.7 million related to share-based compensation for the three months ended June 30, 2026 and 2025, respectively. The Company recognized a tax benefit of $2.0 million and $1.7 million related to share-based compensation for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, there was $22.9 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under existing share-based plans expected to be recognized over a weighted average period of 1.3 years.

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