Texas Pacific Land Trust Announces Second Quarter 2019 Financial Results
DALLAS--(BUSINESS WIRE)-- 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.
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TEXAS PACIFIC LAND TRUST |
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REPORT OF OPERATIONS – UNAUDITED |
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(in thousands, except share and per share amounts) |
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Three Months Ended June 30, |
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|
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2019 |
|
2018 |
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Oil and gas royalties |
|
$ |
|
39,641 |
|
|
$ |
|
30,278 |
|
|
Easements and other surface-related income |
|
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22,357 |
|
|
|
27,799 |
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Water sales and royalties |
|
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20,430 |
|
|
|
15,643 |
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Land sales |
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4,774 |
|
|
— |
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|||
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Other operating revenue |
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|
108 |
|
|
|
124 |
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Total revenues |
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$ |
|
87,310 |
|
|
$ |
|
73,844 |
|
|
|
|
|
|
|
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Income tax expense |
|
$ |
|
13,293 |
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|
$ |
|
13,162 |
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Net income |
|
$ |
|
49,586 |
|
|
$ |
|
52,503 |
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Net income per Sub-share Certificate — basic and diluted |
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$ |
|
6.39 |
|
|
$ |
|
6.73 |
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Weighted average number of Sub-share Certificates outstanding during period |
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7,756,156 |
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|
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7,803,162 |
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Six Months Ended June 30, |
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2019 |
|
2018 |
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Oil and gas royalties |
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$ |
|
72,854 |
|
|
$ |
|
56,825 |
|
|
Easements and other surface-related income |
|
|
53,724 |
|
|
|
44,777 |
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Water sales and royalties |
|
|
43,413 |
|
|
|
29,250 |
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Land sales |
|
|
108,399 |
|
|
|
2,750 |
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Other operating revenue |
|
|
244 |
|
|
|
249 |
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Total revenues |
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$ |
|
278,634 |
|
|
$ |
|
133,851 |
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|
|
|
|
|
|
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Income tax expense |
|
$ |
|
48,841 |
|
|
$ |
|
23,982 |
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Net income |
|
$ |
|
189,584 |
|
|
$ |
|
96,294 |
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Net income per Sub-share Certificate — basic and diluted |
|
$ |
|
24.44 |
|
|
$ |
|
12.33 |
|
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Weighted average number of Sub-share Certificates outstanding during period |
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|
7,757,199 |
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|
|
7,808,064 |
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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 (in thousands):
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Three Months Ended June 30, |
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2019 |
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2018 |
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Revenues: |
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|
|
|
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Land and resource management: |
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|
|
|
|
|
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Oil and gas royalties |
|
$ |
|
|
39,641 |
|
|
46 |
% |
|
$ |
|
|
30,278 |
|
|
41 |
% |
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Easements and other surface-related income |
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|
14,165 |
|
|
16 |
% |
|
|
21,974 |
|
|
30 |
% |
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Land sales and other operating revenue |
|
|
4,882 |
|
|
6 |
% |
|
|
124 |
|
|
— |
% |
||||
|
|
|
|
58,688 |
|
|
68 |
% |
|
|
52,376 |
|
|
71 |
% |
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Water service and operations: |
|
|
|
|
|
|
|
|
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Water sales and royalties |
|
|
20,430 |
|
|
23 |
% |
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|
15,643 |
|
|
21 |
% |
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Easements and other surface-related income |
|
|
8,192 |
|
|
9 |
% |
|
|
5,825 |
|
|
8 |
% |
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|
|
|
|
28,622 |
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|
32 |
% |
|
|
21,468 |
|
|
29 |
% |
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Total consolidated revenues |
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$ |
|
|
87,310 |
|
|
100 |
% |
|
$ |
|
|
73,844 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
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Net income: |
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|
|
|
|
|
|
|
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Land and resource management |
|
$ |
|
|
37,194 |
|
|
75 |
% |
|
$ |
|
|
40,505 |
|
|
77 |
% |
|
Water service and operations |
|
|
12,392 |
|
|
25 |
% |
|
|
11,998 |
|
|
23 |
% |
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Total consolidated net income |
|
$ |
|
|
49,586 |
|
|
100 |
% |
|
$ |
|
|
52,503 |
|
|
100 |
% |
|
|
|
Six Months Ended June 30, |
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|
|
2019 |
|
2018 |
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Revenues: |
|
|
|
|
|
|
|
|
||||||||||
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Land and resource management: |
|
|
|
|
|
|
|
|
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Oil and gas royalties |
|
$ |
|
|
72,854 |
|
|
25 |
% |
|
$ |
|
|
56,825 |
|
|
43 |
% |
|
Easements and other surface-related income |
|
|
37,650 |
|
|
14 |
% |
|
|
35,305 |
|
|
26 |
% |
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|
Land sales and other operating revenue |
|
|
108,643 |
|
|
39 |
% |
|
|
2,999 |
|
|
2 |
% |
||||
|
|
|
|
219,147 |
|
|
78 |
% |
|
|
95,129 |
|
|
71 |
% |
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Water service and operations: |
|
|
|
|
|
|
|
|
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Water sales and royalties |
|
|
43,413 |
|
|
16 |
% |
|
|
29,250 |
|
|
22 |
% |
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|
Easements and other surface-related income |
|
|
16,074 |
|
|
6 |
% |
|
|
9,472 |
|
|
7 |
% |
||||
|
|
|
|
59,487 |
|
|
22 |
% |
|
|
38,722 |
|
|
29 |
% |
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Total consolidated revenues |
|
$ |
|
|
278,634 |
|
|
100 |
% |
|
$ |
|
|
133,851 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
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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 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190731006017/en/
Texas Pacific Land Trust
Telephone (214) 969-5530
Trustees:
David E. Barry
John R. Norris III
Officers:
Tyler Glover
Robert J. Packer
Source: Texas Pacific Land Trust
Released July 31, 2019