TPL Q4 results beat expectations, driven by record production of oil, gas and water, achieving strong growth even amid low oil prices.

Oil and gas production grew 23% YoY (excluding acquisitions), water sales surpassed 1 million barrels per day for the first time (+36%), and full-year free cash flow reached $498 million (+8%).

Progress continues on the data center platform partnership with Bolt, with priority rights for winning water supply bids; the Orla desalination facility is nearing completion, and new processes can reduce costs while waste heat capture for cooling is being studied.

2026 capital expenditure is $6.5–7.5 billion, with a focus on waste heat and data center cooling research, and no downward guidance revision.

Management’s tone was extremely positive, emphasizing structural opportunities from AI and desalination, but uncertainty around project implementation timelines warrants attention.