July 31, 2019 - 4:30 PM EDT
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Texas Pacific Land Trust Announces Second Quarter 2019 Financial Results

DALLAS

Texas Pacific Land Trust (NYSE: TPL) today announced financial results for the second quarter ended June 30, 2019.

Results for the second quarter of 2019:

  • Net income of $49.6 million, or $6.39 per Sub-share Certificate, for the second quarter ended June 30, 2019 compared with $52.5 million, or $6.73 per Sub-share Certificate, for the second quarter ended June 30, 2018.
  • Revenues of $87.3 million for the second quarter ended June 30, 2019, compared with $73.8 million for the second quarter ended June 30, 2018.
  • Increases of 30.9% in oil and gas royalty revenue and 30.6% in water sales and royalty revenue, and a decrease of 19.6% in easements and other surface-related income, for the second quarter ended June 30, 2019 compared with the second quarter ended June 30, 2018.

Results for the six months ended June 30, 2019:

  • Net income of $189.6 million, or $24.44 per Sub-share Certificate, for the six months ended June 30, 2019 compared with $96.3 million, or $12.33 per Sub-share Certificate, for the six months ended June 30, 2018.
  • Revenues of $278.6 million for the six months ended June 30, 2019, compared with $133.9 million for the six months ended June 30, 2018.
  • Increases of 48.4% in water sales and royalty revenue, 28.2% in oil and gas royalty revenue and 20.0% in easements and other surface-related income for the six months ended June 30, 2019 compared with the six months ended June 30, 2018.

Further details for the second quarter of 2019:

Oil and gas royalty revenue was $39.6 million for the second quarter ended June 30, 2019, compared with $30.3 million for the second quarter ended June 30, 2018, an increase of 30.9%. Crude oil and gas production subject to the Trust’s royalty interests increased 41.3% and 120.2%, respectively, in the second quarter ended June 30, 2019 compared to the second quarter ended June 30, 2018. While crude oil and gas production increased in the second quarter ended June 30, 2019 compared to June 30, 2018, the prices received for crude oil and gas production decreased 4.8% and 43.5%, respectively, over the same time period.

Easements and other surface-related income was $22.4 million for the second quarter ended June 30, 2019, a decrease of 19.6% compared with the second quarter ended June 30, 2018 when easements and other surface-related income was $27.8 million. This decrease of $5.4 million resulted primarily from decreases in pipeline easement income and temporary permits partially offset by an increase in lease rental income for the second quarter ended June 30, 2019 compared to the same period of 2018. Pipeline easement income decreased $3.8 million for the second quarter ended June 30, 2019 compared to the same period of 2018.

Water sales and royalty revenue was $20.4 million for the second quarter ended June 30, 2019, an increase of 30.6% compared with the second quarter ended June 30, 2018 when water sales and royalty revenue was $15.6 million.

Land sales revenue was $4.8 million for the second quarter ended June 30, 2019. The Trust sold approximately 658 acres of land for an average price of approximately $7,260 per acre. There was no land sales revenue for the second quarter ended June 30, 2018.

Further details for six months ended June 30, 2019:

Oil and gas royalty revenue was $72.9 million for the six months ended June 30, 2019, compared with $56.8 million for the six months ended June 30, 2018, an increase of 28.2%. Crude oil and gas production subject to the Trust’s royalty interests increased 49.0% and 119.9%, respectively, in the six months ended June 30, 2019 compared to the six months ended June 30, 2018. While crude oil and gas production increased in the six months ended June 30, 2019 compared to June 30, 2018, the prices received for crude oil and gas production decreased 10.5% and 45.2%, respectively, over the same time period.

Easements and other surface-related income was $53.7 million for the six months ended June 30, 2019, an increase of 20.0% compared with the six months ended June 30, 2018 when easements and other surface-related income was $44.8 million. The increase resulted primarily from increases in pipeline easement income for the six months ended June 30, 2019 compared to the same period of 2018. Pipeline easement income increased $8.9 million for the six months ended June 30, 2019 compared to the same period of 2018.

Water sales and royalty revenue was $43.4 million for the six months ended June 30, 2019, an increase of 48.4% compared with the six months ended June 30, 2018 when water sales and royalty revenue was $29.2 million.

Land sales revenue was $108.4 million for the six months ended June 30, 2019, when the Trust sold approximately 21,909 acres of land for an average price of approximately $4,948 per acre. Land sales revenue was $2.8 million for the six months ended June 30, 2018.

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.

 

TEXAS PACIFIC LAND TRUST

REPORT OF OPERATIONS – UNAUDITED

(in thousands, except share and per share amounts)


 

 

Three Months Ended June 30,

 

 

2019

 

2018

Oil and gas royalties

 

$

 

39,641

 

 

$

 

30,278

 

Easements and other surface-related income

 

 

22,357

 

 

 

27,799

 

Water sales and royalties

 

 

20,430

 

 

 

15,643

 

Land sales

 

 

4,774

 

 

 

Other operating revenue

 

 

108

 

 

 

124

 

Total revenues

 

$

 

87,310

 

 

$

 

73,844

 

 

 

 

 

 

Income tax expense

 

$

 

13,293

 

 

$

 

13,162

 

Net income

 

$

 

49,586

 

 

$

 

52,503

 

Net income per Sub-share Certificate — basic and diluted

 

$

 

6.39

 

 

$

 

6.73

 

Weighted average number of Sub-share Certificates outstanding during period

 

 

7,756,156

 

 

 

7,803,162

 

 

 

 

Six Months Ended June 30,

 

 

2019

 

2018

Oil and gas royalties

 

$

 

72,854

 

 

$

 

56,825

 

Easements and other surface-related income

 

 

53,724

 

 

 

44,777

 

Water sales and royalties

 

 

43,413

 

 

 

29,250

 

Land sales

 

 

108,399

 

 

 

2,750

 

Other operating revenue

 

 

244

 

 

 

249

 

Total revenues

 

$

 

278,634

 

 

$

 

133,851

 

 

 

 

 

 

Income tax expense

 

$

 

48,841

 

 

$

 

23,982

 

Net income

 

$

 

189,584

 

 

$

 

96,294

 

Net income per Sub-share Certificate — basic and diluted

 

$

 

24.44

 

 

$

 

12.33

 

Weighted average number of Sub-share Certificates outstanding during period

 

 

7,757,199

 

 

 

7,808,064

 

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 (in thousands):

 

 

Three Months Ended June 30,

 

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

 

Land and resource management:

 

 

 

 

 

 

 

 

Oil and gas royalties

 

$

 

 

39,641

 

 

46

%

 

$

 

 

30,278

 

 

41

%

Easements and other surface-related income

 

 

14,165

 

 

16

%

 

 

21,974

 

 

30

%

Land sales and other operating revenue

 

 

4,882

 

 

6

%

 

 

124

 

 

%

 

 

 

58,688

 

 

68

%

 

 

52,376

 

 

71

%

Water service and operations:

 

 

 

 

 

 

 

 

Water sales and royalties

 

 

20,430

 

 

23

%

 

 

15,643

 

 

21

%

Easements and other surface-related income

 

 

8,192

 

 

9

%

 

 

5,825

 

 

8

%

 

 

 

28,622

 

 

32

%

 

 

21,468

 

 

29

%

Total consolidated revenues

 

$

 

 

87,310

 

 

100

%

 

$

 

 

73,844

 

 

100

%

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

Land and resource management

 

$

 

 

37,194

 

 

75

%

 

$

 

 

40,505

 

 

77

%

Water service and operations

 

 

12,392

 

 

25

%

 

 

11,998

 

 

23

%

Total consolidated net income

 

$

 

 

49,586

 

 

100

%

 

$

 

 

52,503

 

 

100

%

 

 

 

Six Months Ended June 30,

 

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

 

Land and resource management:

 

 

 

 

 

 

 

 

Oil and gas royalties

 

$

 

 

72,854

 

 

25

%

 

$

 

 

56,825

 

 

43

%

Easements and other surface-related income

 

 

37,650

 

 

14

%

 

 

35,305

 

 

26

%

Land sales and other operating revenue

 

 

108,643

 

 

39

%

 

 

2,999

 

 

2

%

 

 

 

219,147

 

 

78

%

 

 

95,129

 

 

71

%

Water service and operations:

 

 

 

 

 

 

 

 

Water sales and royalties

 

 

43,413

 

 

16

%

 

 

29,250

 

 

22

%

Easements and other surface-related income

 

 

16,074

 

 

6

%

 

 

9,472

 

 

7

%

 

 

 

59,487

 

 

22

%

 

 

38,722

 

 

29

%

Total consolidated revenues

 

$

 

 

278,634

 

 

100

%

 

$

 

 

133,851

 

 

100

%

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

Land and resource management

 

$

 

 

160,311

 

 

85

%

 

$

 

 

73,315

 

 

76

%

Water service and operations

 

 

29,273

 

 

15

%

 

 

22,979

 

 

24

%

Total consolidated net income

 

$

 

 

189,584

 

 

100

%

 

$

 

 

96,294

 

 

100

%

 

 

Texas Pacific Land Trust
Telephone (214) 969-5530
Trustees:
David E. Barry
John R. Norris III

Officers:
Tyler Glover
Robert J. Packer


Source: Business Wire (July 31, 2019 - 4:30 PM EDT)

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