Item 2. Properties.

Surface Acreage

Our ownership of the surface estate of approximately 882,000 surface acres is comprised of numerous separate tracts, principally concentrated in the Permian Basin. There were no material liens or encumbrances on our title to the surface estate of those tracts as of December 31, 2025. Of our total surface acreage, approximately 800,000 acres were assigned to the Company through the Declaration of Trust in 1888 when the Trust was formed and no value was assigned to the land at that time.

The following table shows our surface acreage ownership by county as of December 31, 2025 (1):

(1) Counties are located in the State of Texas unless otherwise noted.

(2) County is located in the State of New Mexico.

Oil and Gas Royalty Interests

Our oil and gas royalty interests are located solely in the United States in the Permian Basin. Our oil and gas royalty interests are comprised of royalty interests assigned through the Declaration of Trust (the “Assigned Royalty Interests”) and royalty interests acquired. Our Assigned Royalty Interests as of December 31, 2025 represent the remaining oil and gas royalty interests assigned to us through the Declaration of Trust in 1888 as further discussed in Item 1. “Business.” The fair market value of the Assigned Royalty Interests was not determined in 1888 when the Trust was formed and, therefore, no value is assigned to these interests on our Consolidated Balance Sheets. Royalty interests acquired represent royalty interests in proved and unproved oil and gas properties.

The following table shows NRA in the Assigned Royalty Interests and the royalty interests acquired by county as of December 31, 2025 (1):

(1) Counties are located in the State of Texas unless otherwise noted.

(2) County is located in the State of New Mexico.

Summary of Estimated Proved Reserves

We define proved reserves as proved developed producing (“PDP”) reserves. PDP reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods, or in which the cost of the required equipment is relatively minor compared to the cost of a new well. The Company’s oil and gas properties are located in the Permian Basin.

The PDP reserve estimates and their associated future net cash flows were prepared by Ryder Scott as of December 31, 2025. The reserve report covers only PDP reserves and does not include undeveloped minerals or royalties. The oil and natural gas PDP reserve estimates represent the Company’s net ownership interest in its proved properties and were estimated in accordance with guidelines established by the SEC. Reserve studies were not prepared for periods prior to December 31, 2024. Accordingly, the comparative reserve information for those periods was derived from the December 31, 2024 reserve report by rolling volumes backwards from 2024 to 2022 to reflect historical production. Therefore, no revisions of prior estimates were recorded for these periods.

The following table presents estimated PDP reserves as of December 31, 2025:

(1) Commonly used definitions in the oil and gas industry: “MBbls” represents one thousand barrels of crude oil, condensate or NGLs. “MMcf” represents one million cubic feet of natural gas. “MBoe” represents one thousand Boe.

PDP Reserves Evaluation and Review of Estimated PDP Reserves

The estimated PDP reserves as of December 31, 2025 are based on reserve estimates prepared by Ryder Scott. The internal and external technical persons responsible for preparing or auditing our PDP reserve estimates meet the requirements with regards to qualifications, independence, objectivity and confidentiality set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers. Ryder Scott is a third-party engineering firm and does not own an interest in any of our properties and is not employed by us on a contingent basis. The PDP reserve analysis prepared by Ryder Scott covered 100% of our total PDP reserves for 2025. No undeveloped reserves were reported. A copy of the summary report prepared by Ryder Scott is included as Exhibit 99.1 to this Annual Report.

Under SEC rules, PDP reserves are those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible–from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations–prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. If deterministic methods are used, the SEC has defined reasonable certainty for PDP reserves as a “high degree of confidence that the quantities will be recovered.” All PDP reserves as of December 31, 2025 were estimated using a deterministic method. The process of estimating the quantities of recoverable oil and natural gas reserves relies on the use of certain generally accepted analytical procedures. These analytical procedures fall into three broad categories or methods: (i) performance-based methods, (ii) volumetric-based methods, and (iii) analogy. These methods may be used singularly or in combination by the reserve evaluator in the process of estimating the quantities of reserves. In general, our PDP reserves attributable to producing wells were estimated by the performance-based method decline curve analysis, which utilized extrapolations of available historical production data. In certain cases where there was inadequate historical performance data to establish a definitive trend and where the use of production performance data as a basis for the estimates was inappropriate, the PDP reserves were estimated by analogy, or a combination of performance and analogy methods. The analogy method was used where there were inadequate historical performance data to establish a definitive trend and where the use of production performance data as a basis for the reserve estimates was considered to be inappropriate. To estimate economically recoverable PDP reserves and related future net cash flows, we considered many factors and assumptions, including the use of reservoir parameters derived from geological, geophysical and engineering data which cannot be measured directly, economic criteria based on current costs and the SEC pricing requirements and forecasts of future production rates. To establish reasonable certainty with respect to our estimated PDP reserves, the technologies and economic data used in the estimation of our PDP reserves included production data, downhole completion information, geologic data, and historical well cost and operating expense data. The process of estimating oil, natural gas and natural gas liquids reserves is complex and requires significant judgment. As a result, our petroleum engineers and geoscience professionals have an internal controls process to ensure the integrity, accuracy and timeliness of the data used to calculate PDP reserves relating to our assets primarily in the Permian Basin. Our internal technical staff met with Ryder Scott periodically during the period covered by the reserve report to discuss the assumptions and methods used in our PDP reserve estimation process. As part of the preparation of the reserve analysis, we provided historical information to Ryder Scott for our properties such as ownership interest, oil and gas production, gas processing and product recovery assumptions and commodity prices.

Our petroleum engineers are primarily responsible for overseeing the preparation of all reserve estimates, reviewing the data provided and the results for reasonableness, and overseeing communications with our independent reserve engineer. Our engineering staff have an average of approximately 20 years of industry experience per person. Our technical staff uses historical information for our properties such as ownership interest, oil and natural gas production, and commodity prices to estimate economic lives of our properties. We limited economic forecasts to 30 years.

Ryder Scott prepared an estimate of the PDP reserves of the Company as of December 31, 2025.

The internal control procedures utilized in the preparation of such PDP reserve estimates are intended to ensure reliability of reserve estimations, and include, but are not limited to the following:

• Review and verification of historical production data, which is based on actual production as reported by our operators;

• Preparation of interim quarterly reserve estimates by our internal reserve engineers and supervision of the preparation of annual reserve estimates by the primary external reserve engineers;

• Review by the reserve engineers of all of our reported PDP reserves at the close of each quarter, including the review of all significant reserve changes;

• Review and verification of historical realized commodity prices and differentials from index prices provided to the external reserve engineer;

• Review of any differences between internal calculations and external reserves estimates by our management and internal engineering staff and confirming any differences are not more than the established audit tolerance guideline of 10 percent;

• Review of the PDP reserve estimates by our Audit Committee with our executive team and Ryder Scott on an annual basis;

• Verification of property ownership by our land department; and

• No employee’s compensation is tied to the amount of reserves booked.

Productive Wells

Productive wells consist of producing wells, wells with at least one month of reported production. As of December 31, 2025, we owned mineral or royalty interests in over 11,346 gross productive wells, which consisted of 8,959 oil wells and 2,387 natural gas wells – over 62 net oil wells and over 48 net natural gas wells.

Our Facilities

We lease office space in Dallas, Texas for our corporate headquarters and in Midland, Texas for TPWR.