Exceeded expectations, with record revenue and free cash flow, driven primarily by record-high oil and gas production and elevated oil prices.

Key data: total revenue of $246 million, up +31% YoY; oil and gas production of 39,700 barrels/day, up +20% YoY; produced water royalties of 4.9 million barrels/day, up +15% YoY.

Business progress: disclosed Chevron's Project Kilby large-scale power generation facility supporting data centers, validating the Permian as an AI hub; acquired over 10,000 acres in Shackelford/Jones County; in talks for 25 GW of projects. Orla 2b desalination facility completed and commissioned; freeze desalination can serve chip cooling and fresh water reuse.

Guidance: reiterated full-year capital expenditure of $65-75 million; expects to reach at least one major definitive agreement in the near term.

Signals: management is highly optimistic about data centers and desalination; however, water sales were weighed down by weak gas prices, down -19% QoQ.