Texas Pacific Land Corporation Announces Second Quarter Results and Another Record Performance From Water Segment
Texas Pacific Land (NYSE: TPL) announced its Q2 2024 financial and operating results. Highlights include record performance from the Water Service and Operations segment, with water sales revenue of $40.7M, produced water royalties of $25.3M, and total segment revenues of $68.3M. Net income was $114.6M, or $4.98 per share, on consolidated revenues of $172.3M. The company also declared a special cash dividend of $10.00 per share, which was paid on July 15, 2024, and a quarterly cash dividend of $1.17 per share, payable on September 17, 2024.
For the six months ended June 30, 2024, TPL reported net income of $229.0M, consolidated revenues of $346.5M, and record water segment revenues of $131.0M. Additionally, the company implemented a new energy-efficient water desalination method and completed a three-for-one stock split effective March 26, 2024. TPL aims to maintain a cash balance of $700M and deploy excess cash for share repurchases and dividends.
Texas Pacific Land (NYSE: TPL) ha annunciato i risultati finanziari e operativi per il secondo trimestre del 2024. I punti salienti includono prestazioni record nel segmento Servizi e Operazioni Acquatiche, con entrate dalle vendite di acqua di $40,7 milioni, royalties per acqua prodotta di $25,3 milioni e entrate totali del segmento pari a $68,3 milioni. Il reddito netto è stato di $114,6 milioni, corrispondente a $4,98 per azione, su ricavi consolidati di $172,3 milioni. L'azienda ha anche dichiarato un dividendo in contante speciale di $10,00 per azione, pagato il 15 luglio 2024, e un dividendo trimestrale in contante di $1,17 per azione, da pagare il 17 settembre 2024.
Per i sei mesi terminati il 30 giugno 2024, TPL ha riportato un reddito netto di $229,0 milioni, ricavi consolidati di $346,5 milioni e entrate record nel segmento acqua di $131,0 milioni. Inoltre, l'azienda ha implementato un nuovo metodo di dissalazione dell'acqua ad alta efficienza energetica e ha completato uno scorporo azionario 3 per 1, effettivo dal 26 marzo 2024. TPL mira a mantenere un saldo di cassa di $700 milioni e a utilizzare la liquidità in eccesso per riacquisti di azioni e dividendi.
Texas Pacific Land (NYSE: TPL) anunció sus resultados financieros y operativos para el segundo trimestre de 2024. Los puntos destacados incluyen un rendimiento récord del segmento de Servicios y Operaciones de Agua, con ingresos por ventas de agua de $40.7 millones, regalías por agua producida de $25.3 millones y ingresos totales del segmento de $68.3 millones. El ingreso neto fue de $114.6 millones, o $4.98 por acción, sobre ingresos consolidados de $172.3 millones. La compañía también declaró un dividendo en efectivo especial de $10.00 por acción, que se pagó el 15 de julio de 2024, y un dividendo en efectivo trimestral de $1.17 por acción, que se pagará el 17 de septiembre de 2024.
Durante los seis meses que finalizaron el 30 de junio de 2024, TPL reportó un ingreso neto de $229.0 millones, ingresos consolidados de $346.5 millones y ingresos récord del segmento de agua de $131.0 millones. Además, la compañía implementó un nuevo método eficiente en energía para la desalinización del agua y completó una división de acciones de tres por uno efectiva el 26 de marzo de 2024. TPL tiene como objetivo mantener un saldo de efectivo de $700 millones y utilizar el exceso de efectivo para recompras de acciones y dividendos.
텍사스 퍼시픽 랜드(Texas Pacific Land, NYSE: TPL)는 2024년 2분기 재무 및 운영 결과를 발표했습니다. 주요 하이라이트는 물 서비스 및 운영 부문에서의 기록적인 성과로, 물 판매 수익이 4,070만 달러, 생산된 물의 로열티가 2,530만 달러, 총 부문 수익이 6,830만 달러에 달했습니다. 순이익은 1억 1,460만 달러, 주당 4.98달러로, 통합 수익은 1억 7,230만 달러를 기록했습니다. 회사는 또한 2024년 7월 15일에 지급된 주당 10.00달러의 특별 현금 배당금과 2024년 9월 17일 지급 예정인 주당 1.17달러의 분기별 현금 배당금을 선언했습니다.
2024년 6월 30일로 종료된 6개월 동안 TPL은 2억 2,900만 달러의 순이익, 3억 4,650만 달러의 통합 수익 및 기록적인 물 부문 수익 1억 3,100만 달러를 보고했습니다. 또한, 회사는 새로운 에너지 효율적인 물 해수 담수화 방법을 구현하고 2024년 3월 26일부로 3 대 1의 주식 분할을 완료했습니다. TPL은 7억 달러의 현금 잔고를 유지하고 여분의 현금을 주식 재매입 및 배당금에 사용할 계획입니다.
Texas Pacific Land (NYSE: TPL) a annoncé ses résultats financiers et opérationnels pour le deuxième trimestre 2024. Les faits marquants comprennent une performance record du segment des services et opérations en eau, avec des revenus de vente d'eau de 40,7 millions de dollars, des redevances sur l'eau produite de 25,3 millions de dollars et des revenus totaux du segment de 68,3 millions de dollars. Le revenu net s'est élevé à 114,6 millions de dollars, soit 4,98 dollars par action, sur des revenus consolidés de 172,3 millions de dollars. L'entreprise a également déclaré un dividende en espèces spécial de 10,00 dollars par action, qui a été payé le 15 juillet 2024, ainsi qu'un dividende trimestriel en espèces de 1,17 dollar par action, payable le 17 septembre 2024.
Pour les six mois se terminant le 30 juin 2024, TPL a rapporté un revenu net de 229,0 millions de dollars, des revenus consolidés de 346,5 millions de dollars et des revenus record du segment d'eau de 131,0 millions de dollars. De plus, l'entreprise a mis en œuvre une nouvelle méthode de désalinisation de l'eau économe en énergie et a réalisé un fractionnement d'actions au ratio de trois pour un, effectif le 26 mars 2024. TPL vise à maintenir un solde de trésorerie de 700 millions de dollars et à utiliser l'excédent de trésorerie pour des rachats d'actions et des dividendes.
Texas Pacific Land (NYSE: TPL) hat seine Finanz- und Betriebsergebnisse für das zweite Quartal 2024 veröffentlicht. Zu den Highlights gehören Rekordergebnisse im Segment Wasserdienstleistungen und -betriebe, mit Wasserverkaufsumsätzen von 40,7 Millionen US-Dollar, Produktionswasser-Royalty von 25,3 Millionen US-Dollar und Gesamterträgen des Segments von 68,3 Millionen US-Dollar. Der Nettogewinn betrug 114,6 Millionen US-Dollar oder 4,98 US-Dollar pro Aktie, bei konsolidierten Einnahmen von 172,3 Millionen US-Dollar. Das Unternehmen erklärte außerdem eine Sonderbar-Dividende von 10,00 USD pro Aktie, die am 15. Juli 2024 ausgezahlt wurde, sowie eine vierteljährliche Bardividende von 1,17 USD pro Aktie, die am 17. September 2024 fällig ist.
Für die sechs Monate bis zum 30. Juni 2024 berichtete TPL von einem Nettogewinn von 229,0 Millionen US-Dollar, konsolidierten Einnahmen von 346,5 Millionen US-Dollar und Rekordeinnahmen im Wassersegment von 131,0 Millionen US-Dollar. Darüber hinaus implementierte das Unternehmen eine neue energieeffiziente Methode zur Entsalzung von Wasser und führte am 26. März 2024 einen Aktiensplit im Verhältnis von drei zu eins durch. TPL strebt an, eine Barreserve von 700 Millionen US-Dollar aufrechtzuerhalten und überschüssige Barmittel für Aktienrückkäufe und Dividenden zu verwenden.
- Record water sales revenue of $40.7M in Q2 2024
- Produced water royalties revenue reached $25.3M
- Q2 2024 net income of $114.6M
- Special cash dividend of $10.00 per share paid
- Quarterly cash dividend of $1.17 per share declared
- Consolidated net income of $229.0M for H1 2024
- Record water segment revenues of $131.0M for H1 2024
- New energy-efficient water desalination method developed
- Three-for-one stock split effective March 26, 2024
- None.
Insights
Texas Pacific Land 's Q2 2024 results demonstrate strong performance, particularly in its Water Service and Operations segment. The company achieved record revenues of
The company's overall financial health remains robust, with consolidated net income of
However, investors should note the slight sequential decrease in total revenues from Q1 to Q2 2024, primarily due to lower easements income and oil and gas royalty revenue. This highlights the company's exposure to commodity price fluctuations and customer activity levels.
TPL's Q2 results reflect the ongoing strength of the Permian Basin as a world-class oil and gas resource. The company's royalty production remained steady at 24.9 thousand Boe per day, with new wells added during the quarter featuring impressive average lateral lengths of 10,366 ft. This indicates continued efficiency gains in drilling and completion techniques by operators on TPL's acreage.
The company's land position, with 6.3 net well permits and 9.5 net drilled but uncompleted wells, suggests a healthy pipeline of future production. However, the
TPL's development of a new energy-efficient method for produced water desalination and treatment is a significant move. If successful, this could provide a competitive advantage in water management services, a critical aspect of Permian Basin operations.
TPL's focus on water management in the Permian Basin is not just a revenue driver but also addresses a critical environmental concern in oil and gas operations. The company's record performance in water sales and produced water royalties indicates growing demand for efficient water management solutions in a water-stressed region.
The development of a new energy-efficient method for produced water desalination and treatment is particularly noteworthy. This initiative could significantly reduce the environmental footprint of oil and gas operations by enabling water reuse and reducing freshwater consumption. The planned 10,000 barrels per day test facility will be a important step in proving the technology's scalability and effectiveness.
However, investors should monitor the energy intensity and potential emissions associated with this new treatment method, as these factors will be important for its long-term sustainability and regulatory compliance in an increasingly carbon-conscious industry.
Earnings
Second Quarter 2024 Highlights
-
Water Service and Operations segment achieved record performance for the following:
-
Water sales revenue of
$40.7 million -
Produced water royalties revenue of
$25.3 million -
Total segment revenues of
$68.3 million -
Total segment net income of
$34.5 million
-
Water sales revenue of
-
Announced a target cash and cash equivalents balance of approximately
$700 million $10.00 -
Consolidated net income of
$114.6 million $4.98 -
Consolidated revenues of
$172.3 million -
Adjusted EBITDA(1) of
$153.2 million -
Free cash flow (1) of
$116.0 million - Royalty production of 24.9 thousand barrels of oil equivalent (“Boe”) per day
-
$6.3 million -
Quarterly cash dividend of
$1.17 - As of June 30, 2024, TPL’s royalty acreage had an estimated 6.3 net well permits, 9.5 net drilled but uncompleted wells, 4.0 net completed wells, and 73.3 net producing wells. Net producing wells added during the quarter had an average lateral length of approximately 10,366 ft.
Six Months Ended June 30, 2024 Highlights
- The Company announced the development of a new energy-efficient method of produced water desalination and treatment. The Company has successfully conducted a technology pilot and is progressing towards the construction of a larger test facility with an initial capacity of 10,000 barrels of produced water per day.
- Three-for-one stock split effective March 26, 2024
-
Consolidated net income of
$229.0 million $9.95 -
Consolidated revenues of
$346.5 million $131.0 million -
Adjusted EBITDA(1) of
$305.3 million -
Free cash flow (1) of
$230.5 million - Royalty production of 24.9 thousand Boe per day
-
$16.6 million -
$53.8 million
(1) Reconciliations of Non-GAAP measures are provided in the tables below.
“This quarter’s strong results highlight the meaningful contribution derived from investments we have made in the water business since its inception in 2017,” said Tyler Glover, Chief Executive Officer of the Company. “The substantial investment into hiring personnel and developing targeted infrastructure over several years was a pivotal moment in the Company’s history, purposefully positioning TPL to be at the forefront of the Permian Basin’s emergence as a world-class resource. This most recent quarter represents corporate records for each of water sales and produced water royalties revenues, which is a testament to the water segment’s continued success and relevance to TPL overall. The Permian Basin, with its enormous size and excellent resource quality, provides TPL a long growth runway, and we remain focused on extracting maximum value where we can leverage our superb people, technology, and asset footprint.”
Financial Results for the Second Quarter of 2024 - Sequential
The Company reported net income of
Total revenues for the second quarter of 2024 were
Total operating expenses were
Financial Results for the Second Quarter of 2024 - Year Over Year
Total revenues for the six months ended June 30, 2024 were
Total operating expenses were
Special Cash Dividend Declared
On June 13, 2024, the Company’s Board of Directors (the “Board”) declared a special cash dividend of
Quarterly Dividend Declared
On August 6, 2024, the Company's Board declared a quarterly cash dividend of
Conference
The Company will hold a conference call on Thursday, August 8, 2024 at 7:30 a.m. Central Time to discuss second quarter results. A live webcast of the conference call will be available on the Investors section of the Company’s website at http://www.TexasPacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.
The conference call can also be accessed by dialing 1-877-407-4018 or 1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13745173. The telephone replay will be available starting shortly after the call through August 22, 2024.
About Texas Pacific Land Corporation
Texas Pacific Land Corporation is one of the largest landowners in the
Visit TPL at http://www.TexasPacific.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on TPL’s beliefs, as well as assumptions made by, and information currently available to, TPL, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,” “expect” and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, references to strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts. You should not place undue reliance on forward-looking statements. Although TPL believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, TPL may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may vary materially and adversely from those envisaged in this news release due to a number of factors including, but not limited to: the initiation or outcome of potential litigation; and any changes in general economic and/or industry specific conditions. These risks, as well as other risks associated with TPL are also more fully discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. You can access TPL’s filings with the Securities and Exchange Commission (“SEC”) through the SEC's website at http://www.sec.gov and TPL strongly encourages you to do so. Except as required by applicable law, TPL undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.
FINANCIAL AND OPERATIONAL RESULTS |
||||||||||||
(unaudited) |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2024 |
|
June 30, 2023(2) |
||||
Company’s share of production volumes(1): |
|
|
|
|
|
|
|
|
||||
Oil (MBbls) |
|
|
967 |
|
|
990 |
|
|
1,958 |
|
|
1,792 |
Natural gas (MMcf) |
|
|
3,851 |
|
|
3,806 |
|
|
7,658 |
|
|
7,088 |
NGL (MBbls) |
|
|
661 |
|
|
633 |
|
|
1,294 |
|
|
1,177 |
Equivalents (MBoe) |
|
|
2,270 |
|
|
2,258 |
|
|
4,528 |
|
|
4,151 |
Equivalents per day (MBoe/d) |
|
|
24.9 |
|
|
24.8 |
|
|
24.9 |
|
|
22.9 |
|
|
|
|
|
|
|
|
|
||||
Oil and gas royalty revenue (in thousands): |
|
|
|
|
|
|
|
|
||||
Oil royalties |
|
$ |
74,747 |
|
$ |
72,614 |
|
$ |
147,361 |
|
$ |
127,077 |
Natural gas royalties |
|
|
2,367 |
|
|
7,062 |
|
|
9,429 |
|
|
14,731 |
NGL royalties |
|
|
12,699 |
|
|
12,444 |
|
|
25,143 |
|
|
21,069 |
Total oil and gas royalties |
|
$ |
89,813 |
|
$ |
92,120 |
|
$ |
181,933 |
|
$ |
162,877 |
|
|
|
|
|
|
|
|
|
||||
Realized prices (1): |
|
|
|
|
|
|
|
|
||||
Oil ($/Bbl) |
|
$ |
80.93 |
|
$ |
76.77 |
|
$ |
78.82 |
|
$ |
74.24 |
Natural gas ($/Mcf) |
|
$ |
0.66 |
|
$ |
2.01 |
|
$ |
1.33 |
|
$ |
2.25 |
NGL ($/Bbl) |
|
$ |
20.78 |
|
$ |
21.24 |
|
$ |
21.00 |
|
$ |
19.34 |
Equivalents ($/Boe) |
|
$ |
41.44 |
|
$ |
42.71 |
|
$ |
42.07 |
|
$ |
41.08 |
_________________________ |
|||||
| (1) | Term |
|
Definition |
||
|
Bbl |
|
One stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil, condensate or NGLs. |
||
|
MBbls |
|
One thousand barrels of crude oil, condensate or NGLs. |
||
|
MBoe |
|
One thousand Boe. |
||
|
MBoe/d |
|
One thousand Boe per day. |
||
|
Mcf |
|
One thousand cubic feet of natural gas. |
||
|
MMcf |
|
One million cubic feet of natural gas. |
||
|
NGL |
|
Natural gas liquids. Hydrocarbons found in natural gas that may be extracted as liquefied petroleum gas and natural gasoline. |
||
|
|
|
|
||
(2) |
The metrics and dollars provided for the six months ended June 30, 2023 exclude the impact of an |
||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||
(in thousands, except share and per share amounts) (unaudited) |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2024 |
|
June 30, 2023 |
||||
Revenues: |
|
|
|
|
|
|
|
|
||||
Oil and gas royalties |
|
$ |
89,813 |
|
$ |
92,120 |
|
$ |
181,933 |
|
$ |
171,542 |
Water sales |
|
|
40,650 |
|
|
37,126 |
|
|
77,776 |
|
|
59,377 |
Produced water royalties |
|
|
25,301 |
|
|
23,006 |
|
|
48,307 |
|
|
40,975 |
Easements and other surface-related income |
|
|
16,570 |
|
|
20,646 |
|
|
37,216 |
|
|
33,677 |
Land sales |
|
|
— |
|
|
1,244 |
|
|
1,244 |
|
|
1,400 |
Total revenues |
|
|
172,334 |
|
|
174,142 |
|
|
346,476 |
|
|
306,971 |
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
||||
Salaries and related employee expenses |
|
|
12,771 |
|
|
12,461 |
|
|
25,232 |
|
|
21,189 |
Water service-related expenses |
|
|
14,824 |
|
|
10,212 |
|
|
25,036 |
|
|
15,943 |
General and administrative expenses |
|
|
3,673 |
|
|
4,924 |
|
|
8,597 |
|
|
6,879 |
Legal and professional fees |
|
|
2,307 |
|
|
4,057 |
|
|
6,364 |
|
|
26,782 |
Ad valorem and other taxes |
|
|
1,444 |
|
|
2,357 |
|
|
3,801 |
|
|
3,644 |
Land sales expenses |
|
|
— |
|
|
250 |
|
|
250 |
|
|
5 |
Depreciation, depletion and amortization |
|
|
4,093 |
|
|
3,840 |
|
|
7,933 |
|
|
7,297 |
Total operating expenses |
|
|
39,112 |
|
|
38,101 |
|
|
77,213 |
|
|
81,739 |
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
133,222 |
|
|
136,041 |
|
|
269,263 |
|
|
225,232 |
|
|
|
|
|
|
|
|
|
||||
Other income, net |
|
|
13,220 |
|
|
9,943 |
|
|
23,163 |
|
|
12,260 |
Income before income taxes |
|
|
146,442 |
|
|
145,984 |
|
|
292,426 |
|
|
237,492 |
Income tax expense |
|
|
31,853 |
|
|
31,567 |
|
|
63,420 |
|
|
50,531 |
Net income |
|
$ |
114,589 |
|
$ |
114,417 |
|
$ |
229,006 |
|
$ |
186,961 |
|
|
|
|
|
|
|
|
|
||||
Net income per share of common stock (1) |
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
4.99 |
|
$ |
4.97 |
|
$ |
9.96 |
|
$ |
8.10 |
Diluted |
|
$ |
4.98 |
|
$ |
4.97 |
|
$ |
9.95 |
|
$ |
8.10 |
|
|
|
|
|
|
|
|
|
||||
Weighted average number of shares of common stock outstanding (1) |
|
|
|
|
|
|
|
|
||||
Basic |
|
|
22,987,971 |
|
|
23,003,001 |
|
|
22,995,486 |
|
|
23,068,056 |
Diluted |
|
|
23,013,793 |
|
|
23,020,249 |
|
|
23,018,313 |
|
|
23,083,643 |
_________________________ |
|||
(1) |
|
All share and share price amounts reflect the three-for-one stock split effected on March 26, 2024. |
|
SEGMENT OPERATING RESULTS |
||||||||||||
(dollars in thousands) (unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||
Land and resource management: |
|
|
|
|
|
|
|
|
||||
Oil and gas royalties |
|
$ |
89,813 |
|
52 |
% |
|
$ |
92,120 |
|
53 |
% |
Easements and other surface-related income |
|
|
14,219 |
|
8 |
% |
|
|
18,121 |
|
10 |
% |
Land sales |
|
|
— |
|
— |
% |
|
|
1,244 |
|
1 |
% |
Total land and resource management revenue |
|
|
104,032 |
|
60 |
% |
|
|
111,485 |
|
64 |
% |
|
|
|
|
|
|
|
|
|
||||
Water services and operations: |
|
|
|
|
|
|
|
|
||||
Water sales |
|
|
40,650 |
|
24 |
% |
|
|
37,126 |
|
21 |
% |
Produced water royalties |
|
|
25,301 |
|
15 |
% |
|
|
23,006 |
|
13 |
% |
Easements and other surface-related income |
|
|
2,351 |
|
1 |
% |
|
|
2,525 |
|
2 |
% |
Total water services and operations revenue |
|
|
68,302 |
|
40 |
% |
|
|
62,657 |
|
36 |
% |
Total consolidated revenues |
|
$ |
172,334 |
|
100 |
% |
|
$ |
174,142 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net income: |
|
|
|
|
|
|
|
|
||||
Land and resource management |
|
$ |
80,129 |
|
70 |
% |
|
$ |
80,971 |
|
71 |
% |
Water services and operations |
|
|
34,460 |
|
30 |
% |
|
|
33,446 |
|
29 |
% |
Total consolidated net income |
|
$ |
114,589 |
|
100 |
% |
|
$ |
114,417 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
Six Months Ended |
||||||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||
Land and resource management: |
|
|
|
|
|
|
|
|
||||
Oil and gas royalties |
|
$ |
181,933 |
|
53 |
% |
|
$ |
171,542 |
|
56 |
% |
Easements and other surface-related income |
|
|
32,340 |
|
9 |
% |
|
|
32,401 |
|
11 |
% |
Land sales |
|
|
1,244 |
|
— |
% |
|
|
1,400 |
|
— |
% |
Total land and resource management revenue |
|
|
215,517 |
|
62 |
% |
|
|
205,343 |
|
67 |
% |
|
|
|
|
|
|
|
|
|
||||
Water services and operations: |
|
|
|
|
|
|
|
|
||||
Water sales |
|
|
77,776 |
|
22 |
% |
|
|
59,377 |
|
20 |
% |
Produced water royalties |
|
|
48,307 |
|
14 |
% |
|
|
40,975 |
|
13 |
% |
Easements and other surface-related income |
|
|
4,876 |
|
2 |
% |
|
|
1,276 |
|
— |
% |
Total water services and operations revenue |
|
|
130,959 |
|
38 |
% |
|
|
101,628 |
|
33 |
% |
Total consolidated revenues |
|
$ |
346,476 |
|
100 |
% |
|
$ |
306,971 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net income: |
|
|
|
|
|
|
|
|
||||
Land and resource management |
|
$ |
161,100 |
|
70 |
% |
|
$ |
134,976 |
|
72 |
% |
Water services and operations |
|
|
67,906 |
|
30 |
% |
|
|
51,985 |
|
28 |
% |
Total consolidated net income |
|
$ |
229,006 |
|
100 |
% |
|
$ |
186,961 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
NON-GAAP PERFORMANCE MEASURES AND DEFINITIONS
In addition to amounts presented in accordance with generally accepted accounting principles in
EBITDA, Adjusted EBITDA and Free Cash Flow
EBITDA is a non-GAAP financial measurement of earnings before interest expense, taxes, depreciation, depletion and amortization. Its purpose is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation. Its purpose is to highlight earnings without non-cash activity such as share-based compensation and other non-recurring or unusual items, if applicable. We calculate Free Cash Flow as Adjusted EBITDA less current income tax expense and capital expenditures. Its purpose is to provide an additional measure of operating performance. We have presented EBITDA, Adjusted EBITDA and Free Cash Flow because we believe that these metrics are useful supplements to net income in analyzing the Company’s operating performance. Our definitions of Adjusted EBITDA and Free Cash Flow may differ from computations of similarly titled measures of other companies.
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and Free Cash Flow for the three months ended June 30, 2024 and March 31, 2024 and for the six months ended June 30, 2024 and June 30, 2023 (in thousands):
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Net income |
|
$ |
114,589 |
|
|
$ |
114,417 |
|
|
$ |
229,006 |
|
|
$ |
186,961 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
|
31,853 |
|
|
|
31,567 |
|
|
|
63,420 |
|
|
|
50,531 |
|
Depreciation, depletion and amortization |
|
|
4,093 |
|
|
|
3,840 |
|
|
|
7,933 |
|
|
|
7,297 |
|
EBITDA |
|
|
150,535 |
|
|
|
149,824 |
|
|
|
300,359 |
|
|
|
244,789 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Employee share-based compensation |
|
|
2,700 |
|
|
|
2,220 |
|
|
|
4,920 |
|
|
|
4,715 |
|
Adjusted EBITDA |
|
|
153,235 |
|
|
|
152,044 |
|
|
|
305,279 |
|
|
|
249,504 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Current income tax expense |
|
|
(30,766 |
) |
|
|
(31,898 |
) |
|
|
(62,664 |
) |
|
|
(51,204 |
) |
Capital expenditures |
|
|
(6,499 |
) |
|
|
(5,662 |
) |
|
|
(12,161 |
) |
|
|
(5,144 |
) |
Free Cash Flow |
|
$ |
115,970 |
|
|
$ |
114,484 |
|
|
$ |
230,454 |
|
|
$ |
193,156 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807669797/en/
Investor Relations
IR@TexasPacific.com
Source: Texas Pacific Land Corporation
FAQ
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