Texas Pacific Land Trust (NYSE:TPL) today announced financial results
for the first quarter ended March 31, 2019.
Results for the first quarter of 2019:
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Net income of $140.0 million, or $18.04 per Sub-share Certificate, for
the first quarter ended March 31, 2019 compared with $43.8 million, or
$5.60 per Sub-share Certificate, for the first quarter ended March 31,
2018.
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Revenues of $191.3 million for the first quarter ended March 31, 2019,
compared with $60.0 million for the first quarter ended March 31, 2018.
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Increases of 84.8% in easements and other surface-related income,
68.9% in water sales and royalty revenue and 25.1% in oil and gas
royalty revenue for the first quarter ended March 31, 2019 compared
with the first quarter ended March 31, 2018.
Further details for the first quarter of 2019:
Oil and gas royalty revenue was $33.2 million for the first quarter
ended March 31, 2019, compared with $26.5 million for the first quarter
ended March 31, 2018, an increase of 25.1%. Crude oil and gas production
subject to the Trust’s royalty interests increased 58.5% and 119.6%,
respectively, in the first quarter ended March 31, 2019 compared to the
first quarter ended March 31, 2018. While crude oil and gas production
increased in the first quarter ended March 31, 2019 compared to
March 31, 2018, the prices received for crude oil and gas production
decreased 16.7% and 46.7%, respectively, over the same time period.
Easements and other surface-related income was $31.4 million for the
first quarter ended March 31, 2019, an increase of 84.8% compared with
the first quarter ended March 31, 2018 when easements and other
surface-related income was $17.0 million. This increase resulted
primarily from increases in pipeline easement income and to a lesser
extent, an increase in lease rental income for the first quarter ended
March 31, 2019 compared to the same period of 2018. Pipeline easement
income increased $12.7 million for the first quarter ended March 31,
2019 compared to the same period of 2018.
Water sales and royalty revenue was $23.0 million for the first quarter
ended March 31, 2019, an increase of 68.9% compared with the first
quarter ended March 31, 2018 when water sales and royalty revenue was
$13.6 million.
Land sales revenue was $103.6 million for the first quarter ended
March 31, 2019. The Trust sold approximately 21,251 acres of land for an
average price of approximately $4,876 per acre. Land sales revenue was
$2.8 million for the first quarter ended March 31, 2018.
The Trust also noted that General Don Cook, candidate for election as a
new Trustee, answered questions from shareholders in a video Q&A related
to his candidacy for the vacant Trustee seat, his perspective on the
Trust and his views on corporate governance. Shareholders can watch the
video at www.TrustTPL.com.
The Trust encourages shareholders to review the video Q&A and other
information available on this site and urges them to vote for General
Cook using the BLUE proxy card.
Texas Pacific Land Trust is not a REIT.
This news release may contain forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include statements regarding the Trust’s future operations
and prospects, the markets for real estate in the areas in which the
Trust owns real estate, applicable zoning regulations, the markets for
oil and gas, production limits on prorated oil and gas wells authorized
by the Railroad Commission of Texas, expected competitions, management’s
intent, beliefs or current expectations with respect to the Trust’s
future financial performance and other matters. We assume no
responsibility to update any such forward-looking statements.
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TEXAS PACIFIC LAND TRUST
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REPORT OF OPERATIONS – UNAUDITED
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(dollars in thousands, except share and per share amounts)
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Three Months Ended March 31,
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2019
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2018
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Oil and gas royalties
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$
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33,213
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$
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26,547
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Easements and other surface-related income
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31,367
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16,978
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Water sales and royalties
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22,983
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13,607
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Land sales
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103,625
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2,750
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Other operating revenue
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136
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125
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Total revenues
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$
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191,324
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$
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60,007
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Income taxes
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$
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35,548
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$
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10,820
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Net income
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$
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139,998
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$
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43,791
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Net income per Sub-share Certificate — basic and diluted
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$
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18.04
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$
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5.60
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Weighted average number of Sub-share Certificates outstanding during
period
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7,759,808
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7,818,168
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We operate our business in two segments: Land and Resource Management
and Water Service and Operations. The following is an analysis of our
operating results for the comparable periods by reportable segment:
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Three Months Ended March 31,
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2019
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2018
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Revenues:
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Land and resource management:
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Oil and gas royalties
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$
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33,213
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18
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%
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$
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26,547
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44
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%
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Easements and other surface-related income
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23,485
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12
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%
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13,331
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22
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%
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Land sales and other operating revenue
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103,761
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54
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%
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2,875
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5
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%
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160,459
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84
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%
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42,753
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71
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%
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Water service and operations:
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Water sales and royalties
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22,983
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12
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%
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13,607
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23
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%
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Easements and other surface-related income
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7,882
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4
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%
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3,647
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6
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%
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30,865
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16
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%
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17,254
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29
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%
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Total consolidated revenues
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$
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191,324
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100
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%
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$
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60,007
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100
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%
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Net income:
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Land and resource management
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$
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123,117
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88
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%
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$
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32,811
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75
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%
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Water service and operations
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16,881
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12
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%
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10,980
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25
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%
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Total consolidated net income
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$
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139,998
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100
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%
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$
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43,791
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100
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%
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190425005988/en/
Copyright Business Wire 2019
