Texas Pacific Land Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

Earnings Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per ShareBasic earnings per share (“EPS”) is computed based on the weighted average number of shares outstanding during the period. Diluted EPS is computed based upon the weighted average number of shares outstanding during the period plus unvested restricted stock and other unvested awards granted pursuant to our incentive and equity compensation plans. The computation of diluted EPS reflects the potential dilution that could occur if all outstanding awards under the incentive and equity compensation plans were converted into shares of Common Stock or resulted in the issuance of shares of Common Stock that would then share in the earnings of the Company. The number of dilutive securities is computed using the treasury stock method.

The following table sets forth the computation of net income per share for the years ended December 31, 2022, 2021 and 2020 (in thousands, except number of shares and per share data):


	Years Ended December 31,
	2022		2021		2020
Net income	$	446,362	$	269,980	$	176,049

Basic earnings per share:
Weighted average shares outstanding for basic earnings per share	7,721,957		7,752,027		7,756,156
Basic earnings per share	$	57.80	$	34.83	$	22.70

Diluted earnings per share:
Weighted average shares outstanding for basic earnings per share	7,721,957		7,752,027		7,756,156
Effect of Dilutive securities:
Stock-based incentive plan	4,852		27		—
Weighted average shares outstanding for diluted earnings per share	7,726,809		7,752,054		7,756,156
Diluted earnings per share	$	57.77	$	34.83	$	22.70

Restricted stock is included in the number of shares of Common Stock issued and outstanding, but omitted from the basic earnings per share calculation until such time as the shares of restricted stock vest.