State or other jurisdiction of incorporation or organization: | IRS Employer Identification No.: | |||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
(par value $.01 per share) |
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer (Do not check if a smaller reporting company) | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page No. | ||||||||||||||
Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 | ||||||||||||||
Condensed Consolidated Statements of Income and Total Comprehensive Income for the Three Months ended March 31, 2022 and 2021 | ||||||||||||||
Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2022 and 2021 | ||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable and accrued receivables, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Real estate acquired | |||||||||||
Property, plant and equipment, net | |||||||||||
Royalty interests acquired, net | |||||||||||
Other assets | |||||||||||
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned: | |||||||||||
Land (surface rights) | |||||||||||
1/16th nonparticipating perpetual royalty interest | |||||||||||
1/128th nonparticipating perpetual royalty interest | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Income taxes payable | |||||||||||
Unearned revenue | |||||||||||
Total current liabilities | |||||||||||
Deferred taxes payable | |||||||||||
Unearned revenue - noncurrent | |||||||||||
Accrued liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Retained earnings | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenues: | |||||||||||
Oil and gas royalties | $ | $ | |||||||||
Water sales | |||||||||||
Produced water royalties | |||||||||||
Easements and other surface-related income | |||||||||||
Land sales and other operating revenue | |||||||||||
Total revenues | |||||||||||
Expenses: | |||||||||||
Salaries and related employee expenses | |||||||||||
Water service-related expenses | |||||||||||
General and administrative expenses | |||||||||||
Legal and professional fees | |||||||||||
Ad valorem taxes | |||||||||||
Depreciation, depletion and amortization | |||||||||||
Total operating expenses | |||||||||||
Operating income | |||||||||||
Other income, net | |||||||||||
Income before income taxes | |||||||||||
Income tax expense | |||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income — periodic pension costs, net of income taxes of $ | |||||||||||
Total comprehensive income | $ | $ | |||||||||
Net income per share of common stock | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted average number of shares of common stock outstanding | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Cash dividends per share of common stock | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred taxes | ( | ( | |||||||||
Depreciation, depletion and amortization | |||||||||||
Share-based compensation | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Operating assets, excluding income taxes | ( | ( | |||||||||
Operating liabilities, excluding income taxes | ( | ||||||||||
Income taxes payable | |||||||||||
Cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sale of fixed assets | |||||||||||
Acquisition of real estate | ( | ||||||||||
Acquisition of royalty interests | ( | ||||||||||
Purchase of fixed assets | ( | ( | |||||||||
Cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of common stock | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Cash used in financing activities | ( | ( | |||||||||
Net increase in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Income taxes paid | $ | $ | |||||||||
Supplemental non-cash investing and financing information: | |||||||||||
Nonmonetary exchange of assets | $ | $ | |||||||||
(Decrease) increase in accounts payable related to capital expenditures | $ | ( | $ | ||||||||
Issuance of common stock | $ | $ | |||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Property, plant and equipment, at cost: | |||||||||||
Water service-related assets | $ | $ | |||||||||
Furniture, fixtures and equipment | |||||||||||
Other | |||||||||||
Total property, plant and equipment, at cost | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Number of Acres | Net Book Value | Number of Acres | Net Book Value | |||||||||||||||||||||||
Land (surface rights) (1) | $ | $ | ||||||||||||||||||||||||
Real estate acquired | ||||||||||||||||||||||||||
Total real estate situated in Texas | $ | $ |
Net Book Value | ||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||
1/16th nonparticipating perpetual royalty interests | $ | $ | ||||||||||||
1/128th nonparticipating perpetual royalty interests | ||||||||||||||
Royalty interests acquired | ||||||||||||||
Total royalty interests, gross | $ | $ | ||||||||||||
Less: accumulated depletion | ( | ( | ||||||||||||
Total royalty interests, net | $ | $ | ||||||||||||
Restricted Stock Awards | ||||||||||||||
Number of RSAs | Grant-Date Fair Value per Share | |||||||||||||
Outstanding at December 31, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Cancelled and forfeited | ||||||||||||||
Outstanding at March 31, 2022 | $ |
Restricted Stock Units | ||||||||||||||
Number of RSUs | Grant-Date Fair Value per Share | |||||||||||||
Outstanding at December 31, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Cancelled and forfeited | ||||||||||||||
Outstanding at March 31, 2022 | $ |
Performance Stock Units | ||||||||||||||
Number of PSUs | Weighted-Average Grant-Date Fair Value per Share | |||||||||||||
Outstanding at December 31, 2021 | $ | |||||||||||||
Granted (1) | ||||||||||||||
Vested | ||||||||||||||
Cancelled and forfeited | ||||||||||||||
Outstanding at March 31, 2022 | $ |
Restricted Stock Awards | ||||||||||||||
Number of RSAs | Grant-Date Fair Value per Share | |||||||||||||
Outstanding at December 31, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Cancelled and forfeited | ( | |||||||||||||
Outstanding at March 31, 2022 | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Salaries and related employee expenses (employee awards) | $ | $ | |||||||||
General and administrative expenses (director awards) | |||||||||||
Total share-based compensation expense (1) | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Income before income taxes | $ | $ | |||||||||
Income tax expense | $ | $ | |||||||||
Effective tax rate | % | % |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income | $ | $ | |||||||||
Basic EPS: | |||||||||||
Weighted average shares outstanding for basic EPS | |||||||||||
Basic EPS | $ | $ | |||||||||
Diluted EPS: | |||||||||||
Weighted average shares outstanding for basic EPS | |||||||||||
Effect of Dilutive securities: | |||||||||||
Incentive and equity compensation plans | |||||||||||
Weighted average shares outstanding for diluted EPS | |||||||||||
Diluted EPS | $ | $ |
Common Stock | Additional Paid-in Capital | Treasury Stock | Accum. Other Comp. Inc/(Loss) | Retained Earnings | Total Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2022: | |||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends paid — $ | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation, net of forfeitures | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Periodic pension costs, net of income taxes of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balances as of March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ |
Sub-share Certificates | Common Stock | Accum. Other Comp. Inc/(Loss) | Retained Earnings | Net Proceeds From All Sources | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2021: | |||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2020 | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends paid — $ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Conversion of Sub-shares into shares of common stock | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Periodic pension costs, net of income taxes of $ | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balances as of March 31, 2021 | $ | $ | ( | $ | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenues: | ||||||||||||||
Land and resource management | $ | $ | ||||||||||||
Water services and operations | ||||||||||||||
Total consolidated revenues | $ | $ | ||||||||||||
Net income: | ||||||||||||||
Land and resource management | $ | $ | ||||||||||||
Water services and operations | ||||||||||||||
Total consolidated net income | $ | $ | ||||||||||||
Capital expenditures: | ||||||||||||||
Land and resource management | $ | $ | ||||||||||||
Water services and operations | ||||||||||||||
Total capital expenditures | $ | $ | ||||||||||||
Depreciation, depletion and amortization: | ||||||||||||||
Land and resource management | $ | $ | ||||||||||||
Water services and operations | ||||||||||||||
Total depreciation, depletion and amortization | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Assets: | |||||||||||
Land and resource management | $ | $ | |||||||||
Water services and operations | |||||||||||
Total consolidated assets | $ | $ | |||||||||
Property, plant and equipment, net: | |||||||||||
Land and resource management | $ | $ | |||||||||
Water services and operations | |||||||||||
Total consolidated property, plant and equipment, net | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Oil and Gas Pricing Metrics:(1) | ||||||||||||||
WTI Cushing average price per bbl | $ | 95.18 | $ | 58.09 | ||||||||||
Henry Hub average price per mmbtu | $ | 4.67 | $ | 3.50 | ||||||||||
Activity Metrics specific to the Permian Basin:(1)(2) | ||||||||||||||
Average monthly horizontal permits | 572 | 446 | ||||||||||||
Average monthly horizontal wells drilled | 465 | 343 | ||||||||||||
Average weekly horizontal rig count | 265 | 189 | ||||||||||||
DUCs as of March 31 for each applicable year | 3,924 | 4,617 | ||||||||||||
Total Average US weekly horizontal rig count (2) | 575 | 350 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenues: | |||||||||||
Oil and gas royalties | $ | 104,172 | $ | 49,533 | |||||||
Water sales | 18,820 | 12,956 | |||||||||
Produced water royalties | 14,870 | 12,549 | |||||||||
Easements and other surface-related income | 9,192 | 9,047 | |||||||||
Land sales and other operating revenue | 281 | 70 | |||||||||
Total revenues | 147,335 | 84,155 | |||||||||
Expenses: | |||||||||||
Salaries and related employee expenses | 9,385 | 9,979 | |||||||||
Water service-related expenses | 2,782 | 3,298 | |||||||||
General and administrative expenses | 3,000 | 2,806 | |||||||||
Legal and professional fees | 1,719 | 2,212 | |||||||||
Ad valorem taxes | 2,010 | — | |||||||||
Depreciation, depletion and amortization | 4,126 | 3,838 | |||||||||
Total operating expenses | 23,022 | 22,133 | |||||||||
Operating income | 124,313 | 62,022 | |||||||||
Other income, net | 76 | 5 | |||||||||
Income before income taxes | 124,389 | 62,027 | |||||||||
Income tax expense | 26,489 | 11,975 | |||||||||
Net income | $ | 97,900 | $ | 50,052 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Land and resource management: | ||||||||||||||||||||||||||
Oil and gas royalty revenue | $ | 104,172 | 71 | % | $ | 49,533 | 59 | % | ||||||||||||||||||
Easements and other surface-related income | 8,894 | 6 | % | 8,187 | 10 | % | ||||||||||||||||||||
Land sales and other operating revenue | 281 | — | % | 70 | — | % | ||||||||||||||||||||
Total land and resource management revenue | 113,347 | 77 | % | 57,790 | 69 | % | ||||||||||||||||||||
Water services and operations: | ||||||||||||||||||||||||||
Water sales | 18,820 | 13 | % | 12,956 | 15 | % | ||||||||||||||||||||
Produced water royalties | 14,870 | 10 | % | 12,549 | 15 | % | ||||||||||||||||||||
Easements and other surface-related income | 298 | — | % | 860 | 1 | % | ||||||||||||||||||||
Total water services and operations revenue | 33,988 | 23 | % | 26,365 | 31 | % | ||||||||||||||||||||
Total consolidated revenues | $ | 147,335 | 100 | % | $ | 84,155 | 100 | % | ||||||||||||||||||
Net income: | ||||||||||||||||||||||||||
Land and resource management | $ | 81,156 | 83 | % | $ | 39,513 | 79 | % | ||||||||||||||||||
Water services and operations | 16,744 | 17 | % | 10,539 | 21 | % | ||||||||||||||||||||
Total consolidated net income | $ | 97,900 | 100 | % | $ | 50,052 | 100 | % |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Our share of production volumes(1): | ||||||||||||||
Oil (MBbls) | 796 | 646 | ||||||||||||
Natural gas (MMcf) | 3,279 | 2,709 | ||||||||||||
NGL (MBbls) | 528 | 383 | ||||||||||||
Equivalents (MBoe) | 1,871 | 1,480 | ||||||||||||
Equivalents per day (MBoe/d) | 20.8 | 16.4 | ||||||||||||
Oil and gas royalty revenue (in thousands): | ||||||||||||||
Oil royalties | $ | 71,681 | $ | 34,249 | ||||||||||
Natural gas royalties | 16,175 | 7,360 | ||||||||||||
NGL royalties | 16,316 | 7,924 | ||||||||||||
Total oil and gas royalties | $ | 104,172 | $ | 49,533 | ||||||||||
Realized prices: | ||||||||||||||
Oil ($/Bbl) | $ | 94.24 | $ | 55.53 | ||||||||||
Natural gas ($/Mcf) | $ | 5.33 | $ | 2.94 | ||||||||||
NGL ($/Bbl) | $ | 33.42 | $ | 22.36 | ||||||||||
Equivalents ($/Boe) | $ | 58.31 | $ | 35.04 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net income | $ | 97,900 | $ | 50,052 | ||||||||||
Add: | ||||||||||||||
Income tax expense | 26,489 | 11,975 | ||||||||||||
Depreciation, depletion and amortization | 4,126 | 3,838 | ||||||||||||
EBITDA | 128,515 | 65,865 | ||||||||||||
Add: | ||||||||||||||
Employee share-based compensation | 1,319 | — | ||||||||||||
Conversion costs related to corporate reorganization | — | 1,973 | ||||||||||||
Severance costs | — | 2,000 | ||||||||||||
Adjusted EBITDA | $ | 129,834 | $ | 69,838 |
EXHIBIT NUMBER | DESCRIPTION | |||||||
101* | The following information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Income and Total Comprehensive Income, (iii) Condensed Consolidated Statements of Cash Flows and (iv) Notes to Condensed Consolidated Financial Statements. | |||||||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in iXBRL. |
TEXAS PACIFIC LAND CORPORATION | |||||||||||
(Registrant) | |||||||||||
Date: | May 4, 2022 | By: | /s/ Tyler Glover | ||||||||
Tyler Glover President, Chief Executive Officer and Director |
Date: | May 4, 2022 | By: | /s/ Chris Steddum | ||||||||
Chris Steddum Chief Financial Officer |
Date: | May 4, 2022 | By: | /s/ Tyler Glover | ||||||||
Tyler Glover, President and Chief Executive Officer |
Date: | May 4, 2022 | By: | /s/ Chris Steddum | ||||||||
Chris Steddum, Chief Financial Officer |
Date: | May 4, 2022 | By: | /s/ Tyler Glover | ||||||||
Tyler Glover, President and Chief Executive Officer |
Date: | May 4, 2022 | By: | /s/ Chris Steddum | ||||||||
Chris Steddum, Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 7,756,156 | 7,756,156 |
Common stock, outstanding (in shares) | 7,745,290 | 7,744,695 |
Treasury stock (in shares) | 10,866 | 11,461 |
1/16th nonparticipating perpetual royalty interests | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 6.25% | |
1/128th nonparticipating perpetual royalty interests | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 0.78125% |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Statement [Abstract] | ||
Other comprehensive income - periodic pension costs | $ 2 | $ 8 |
Organization and Description of Business Segments |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business Segments | Organization and Description of Business Segments Organization Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as “TPL”, the “Company”, “our”, “we” or “us”) is a Delaware corporation and one of the largest landowners in the State of Texas with approximately 880,000 surface acres of land in West Texas, with the majority of our ownership concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and gas royalty interest (“NPRI”) under approximately 85,000 acres of land, a 1/16th NPRI under approximately 371,000 acres of land, and approximately 4,000 additional net royalty acres (normalized to 1/8th) in the western part of Texas. TPL’s income is derived primarily from oil, gas and produced water royalties, sales of water and land, easements and commercial leases of the land. On January 11, 2021, we completed our reorganization from a business trust, organized under a Declaration of Trust dated February 1, 1888 (the “Declaration of Trust”), to a corporation (the “Corporate Reorganization”) and changed our name from Texas Pacific Land Trust (the “Trust”) to Texas Pacific Land Corporation. See further discussion of the Corporate Reorganization and its impact on our equity structure in Note 10, “Changes in Equity.” Any references in these condensed consolidated financial statements and notes to the Company, TPL, our, we, or us with respect to periods prior to January 11, 2021 are in reference to the Trust, and references to periods on or after that date are in reference to Texas Pacific Land Corporation or TPL Corporation. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. The condensed consolidated financial statements herein include all adjustments which are, in the opinion of management, necessary to fairly state the financial position of the Company as of March 31, 2022 and the results of its operations for the three months ended March 31, 2022 and 2021, respectively, and its cash flows for the three months ended March 31, 2022 and 2021, respectively. Such adjustments are of a normal nature and all intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, and accordingly these interim financial statements and footnotes should be read in conjunction with the audited financial statements and footnotes included in our Form 10-K for the year ended December 31, 2021. The results for the interim periods shown in this report are not necessarily indicative of future financial results. We operate our business in two segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of strategies and objectives of TPL and provide a framework for timely and rational allocation of resources within businesses. See Note 11, “Business Segment Reporting” for further information regarding our segments.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. Share-based Compensation The Company utilizes the closing stock price on the date of grant to determine the fair value of service-vesting awards, which for the Company includes restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) with a performance condition. For PSUs with a market condition, grant date fair value is determined using an advanced option-pricing model. Unvested awards are entitled to dividends or dividend equivalents which are accrued and distributed to award recipients at the time such awards vest. Dividends are forfeitable if the related award is forfeited. For RSAs, RSUs and PSUs with performance conditions, forfeitures are recognized in the period in which they occur. For PSU awards with market conditions, forfeitures are only recognized if the award recipient does not render the required service during the measurement period. For share-based compensation awards, the Company recognizes compensation expense in the financial statements over the awards’ vesting periods using the graded-vesting method for RSUs and RSAs. For PSU awards with performance conditions, the Company recognizes compensation expense ratably over the measurement period at such time as the awards are probable and estimable. For PSU awards with market conditions, the Company recognizes compensation expenses ratably over the measurement period whether the market condition is satisfied or not if the service for the award is rendered. Share-based compensation is reported on the consolidated statements of income and total comprehensive income as a component of salaries and related employee expenses for employee awards and in general and administrative expenses for director awards. Recently Adopted Accounting Guidance In July 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-05, “Leases (Topic 842) Lessors – Certain Leases with Variable Lease Payments.” Under the ASU, a lessor classifies a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if the lease would have been classified as a sales-type lease or direct financing lease under ASC 842 classification criteria and the lessor would have otherwise recognized a day one loss. The adoption of this guidance effective January 1, 2022, had no impact on our condensed consolidated financial statements and disclosures.
|
Property, Plant and Equipment |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):
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Real Estate Activity |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Activity | Real Estate Activity As of March 31, 2022 and December 31, 2021, TPL owned the following land and real estate (in thousands, except number of acres):
(1)Real estate assigned through the 1888 Declaration of Trust. There were no significant land sales or acquisitions for the three months ended March 31, 2022.
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Oil and Gas Royalty Interests |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil and Gas Royalty Interests | Oil and Gas Royalty InterestsAs of March 31, 2022 and December 31, 2021, we owned the following oil and gas royalty interests (in thousands):
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Share-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Incentive Plan for Employees As of March 31, 2022, the Company has issued RSAs, RSUs and PSUs under the Texas Pacific Land Corporation 2021 Incentive Plan (the “2021 Plan”) to certain employees. The maximum aggregate number of shares of the Company’s common stock that may be issued under the 2021 Plan is 75,000 shares. As of March 31, 2022, 65,452 shares of the Company’s common stock remained available for future grants. Currently, all RSAs, RSUs, and PSUs granted under the 2021 Plan are entitled to receive dividends (for RSAs and RSUs, which are accrued and distributed to award recipients upon vesting) or have dividend equivalent rights. Dividends and dividend equivalent rights are subject to the same vesting conditions as the awards to which they relate and are forfeitable if the related awards are forfeited. The Company utilizes the closing stock price on the date of grant to determine the fair value of RSAs, RSUs and PSUs with a performance condition. For PSUs with a market condition, the Company utilizes a Monte Carlo simulation model to determine grant date fair value per share. The following table summarizes activity related to RSAs for the three months ended March 31, 2022:
RSAs were granted on December 29, 2021 with 1,993 shares vesting on December 29, 2022 and 1,337 shares vesting on December 29, 2023. The following table summarizes activity related to RSUs for the three months ended March 31, 2022:
On February 11, 2022, the Company granted awards totaling 3,824 RSUs to certain employees. The grant date fair value was $1,105 per share. These time-based awards vest in one-third increments over a three-year period. The following table summarizes activity related to PSUs for the three months ended March 31, 2022:
(1)Includes 1,197 RTSR (as defined below) PSUs with a grant date fair value of $1,605 per share and 1,197 FCF (as defined below) PSUs with a grant date fair value of $1,105 per share. On February 11, 2022, the Company granted PSUs to certain employees. Each PSU has a value equal to one share of common stock. The PSUs will vest three years after grant if certain performance metrics are met, as follows: 50% of the PSUs may be earned based on the Company’s relative total stockholder return (“RTSR”) for the three-year period from January 2022 to January 2025 compared to the XOP Index, and 50% of the PSUs may be earned based on the cumulative free cash flow per share (“FCF”) over the three-year vesting period. As the RTSR PSU is a market-based award, its grant date fair value was determined using a Monte Carlo simulation model that uses the same input assumptions as the Black-Scholes model to determine the expected potential ranking of the Company against the XOP Index, i.e. the probability of satisfying the market condition defined in the award. Expected volatility in the model was estimated based on the volatility of historical stock prices over a period matching the expected term of the award. The risk-free interest rate was based on U.S. Treasury yield constant maturities for a term matching the expected term of the award. Equity Plan for Non-Employee Directors As of March 31, 2022, the Company had granted 595 RSAs to directors of the Company under the 2021 Non-Employee Director and Deferred Compensation Plan (the “2021 Directors Plan”). The maximum aggregate number of shares of common stock that may be issued under the 2021 Directors Plan is 10,000 shares, which may consist, in whole or in part, of authorized and unissued shares (if any), treasury shares, or shares reacquired by the Company in any manner. As of March 31, 2022, 9,405 shares of the Company’s common stock remained available for future grants. Currently, all RSAs granted under the 2021 Directors Plan are entitled to receive dividends, which are accrued and distributed to award recipients upon vesting. Dividends are subject to the same vesting conditions as the awards to which they relate and are forfeitable if the related awards are forfeited. The Company utilizes the closing stock price on the date of grant to determine the fair value of the RSAs. The following table summarizes activity related to the RSAs under the 2021 Directors Plan for the three months ended March 31, 2022:
On January 1, 2022, the Company granted 680 shares of restricted stock to our directors. During the three months ended March 31, 2022, 85 shares were forfeited resulting from the departure of a director. The shares will vest on the first anniversary of the award. The fair value as of the date of grant was $1,249 per share. Share-Based Compensation Expense The following table summarizes our share-based compensation expense by line item in the condensed consolidated statements of income (in thousands):
(1)The Company recognized a tax benefit of $0.3 million related to share-based compensation for the three months ended March 31, 2022. As of March 31, 2022, there was $10.8 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under existing share-based plans expected to be recognized over a weighted average period of 1.8 years.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The calculation of our effective tax rate is as follows for the three months ended March 31, 2022 and 2021 (in thousands, except percentages):
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | 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 EPS for three months ended March 31, 2022 and 2021 (in thousands, except number of shares and per share data):
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Commitments |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Litigation Management is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the Company’s financial condition, results of operations or liquidity as of March 31, 2022.
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Changes in Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Equity | Changes in Equity The following tables present changes in our equity for the three months ended March 31, 2022 and 2021 (in thousands, except shares and per share amounts):
Corporate Reorganization On January 11, 2021, TPL completed its Corporate Reorganization, officially changing its name to Texas Pacific Land Corporation. To implement the Corporate Reorganization, the Trust and TPL Corporation entered into agreements and undertook and caused to be undertaken a series of transactions to effect the transfer to TPL Corporation of all of the Trust’s assets, employees, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Corporate Reorganization. Prior to the market opening on January 11, 2021, the Trust distributed all of the shares of common stock of TPL Corporation to holders of sub-share certificates (“Sub-shares”) of the Trust, on a pro rata, one-for-one, basis in accordance with their interests in the Trust (the “Distribution”). As a result of the Distribution, TPL Corporation is now a corporation with its common stock listed under the symbol “TPL” on the New York Stock Exchange. Stock Repurchase Program As our prior share repurchase program expired on December 31, 2021, there were no stock repurchases for the three months ended March 31, 2022. Repurchases of common stock of $0.2 million reported on the condensed consolidated statements of cash flows for the three months ended March 31, 2022 represent share repurchases executed and recorded during December 2021 but not settled until January 2022. On March 11, 2022, our board of directors approved a stock repurchase program to purchase up to an aggregate of $100 million of shares of our outstanding common stock. In connection with the stock repurchase program, the Company entered into a Rule 10b5-1 trading plan (the “Trading Plan”) that generally permits the Company to repurchase shares at times when it might otherwise be prevented from doing so under securities laws. Stock repurchases under the Trading Plan began April 18, 2022. The stock repurchase program expires on December 31, 2022.
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Business Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Reporting | Business Segment Reporting During the periods presented, we reported our financial performance based on the following segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of our strategies and objectives and provide a framework for timely and rational allocation of resources within businesses. We eliminate any inter-segment revenues and expenses upon consolidation. The Land and Resource Management segment encompasses the business of managing our approximately 880,000 surface acres of land and our oil and gas royalty interests in West Texas, principally concentrated in the Permian Basin. The revenue streams of this segment consist primarily of royalties from oil and gas, revenues from easements and commercial leases and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin. The revenue streams of this segment primarily consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties. Segment financial results were as follows for the three months ended March 31, 2022 and 2021 (in thousands):
The following table presents total assets and property, plant and equipment, net by segment as of March 31, 2022 and December 31, 2021 (in thousands):
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Oil and Gas Producing Activities |
3 Months Ended |
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Mar. 31, 2022 | |
Extractive Industries [Abstract] | |
Oil and Gas Producing Activities | Oil and Gas Producing Activities We measure our share of oil and gas produced in barrels of equivalency (“BOEs”). One BOE equals one barrel of crude oil, condensate, NGLs (natural gas liquids) or approximately 6,000 cubic feet of gas. As of March 31, 2022 and 2021, our share of oil and gas produced was approximately 20.8 and 16.4 thousand BOEs per day, respectively. Reserves related to our royalty interests are not presented because the information is unavailable. There are a number of oil and gas wells that have been drilled but are not yet completed (“DUC”) where we have a royalty interest. The number of DUC wells is determined using uniform drilling spacing units with pooled interests for all wells awaiting completion. We have identified 556 and 452 DUC wells subject to our royalty interest as of March 31, 2022 and December 31, 2021, respectively.
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Subsequent Events |
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Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We evaluated events that occurred after the balance sheet date through the date these financial statements were issued, and the following events that met recognition or disclosure criteria were identified: Dividends Declared On May 3, 2022, the board of directors declared a quarterly cash dividend of $3.00 per share and a special dividend of $20.00 per share, both payable on June 15, 2022 to stockholders of record at the close of business on June 8, 2022.
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Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. The condensed consolidated financial statements herein include all adjustments which are, in the opinion of management, necessary to fairly state the financial position of the Company as of March 31, 2022 and the results of its operations for the three months ended March 31, 2022 and 2021, respectively, and its cash flows for the three months ended March 31, 2022 and 2021, respectively. Such adjustments are of a normal nature and all intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, and accordingly these interim financial statements and footnotes should be read in conjunction with the audited financial statements and footnotes included in our Form 10-K for the year ended December 31, 2021. The results for the interim periods shown in this report are not necessarily indicative of future financial results. |
Segment Reporting | We operate our business in two segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of strategies and objectives of TPL and provide a framework for timely and rational allocation of resources within businesses. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information.
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Recently Adopted Accounting Guidance and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Guidance In July 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-05, “Leases (Topic 842) Lessors – Certain Leases with Variable Lease Payments.” Under the ASU, a lessor classifies a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if the lease would have been classified as a sales-type lease or direct financing lease under ASC 842 classification criteria and the lessor would have otherwise recognized a day one loss. The adoption of this guidance effective January 1, 2022, had no impact on our condensed consolidated financial statements and disclosures.
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Share-based Compensation | Share-based Compensation The Company utilizes the closing stock price on the date of grant to determine the fair value of service-vesting awards, which for the Company includes restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) with a performance condition. For PSUs with a market condition, grant date fair value is determined using an advanced option-pricing model. Unvested awards are entitled to dividends or dividend equivalents which are accrued and distributed to award recipients at the time such awards vest. Dividends are forfeitable if the related award is forfeited. For RSAs, RSUs and PSUs with performance conditions, forfeitures are recognized in the period in which they occur. For PSU awards with market conditions, forfeitures are only recognized if the award recipient does not render the required service during the measurement period. For share-based compensation awards, the Company recognizes compensation expense in the financial statements over the awards’ vesting periods using the graded-vesting method for RSUs and RSAs. For PSU awards with performance conditions, the Company recognizes compensation expense ratably over the measurement period at such time as the awards are probable and estimable. For PSU awards with market conditions, the Company recognizes compensation expenses ratably over the measurement period whether the market condition is satisfied or not if the service for the award is rendered. Share-based compensation is reported on the consolidated statements of income and total comprehensive income as a component of salaries and related employee expenses for employee awards and in general and administrative expenses for director awards.
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):
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Real Estate Activity (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Activity | As of March 31, 2022 and December 31, 2021, TPL owned the following land and real estate (in thousands, except number of acres):
(1)Real estate assigned through the 1888 Declaration of Trust.
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Oil and Gas Royalty Interests (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Royalty Interests | As of March 31, 2022 and December 31, 2021, we owned the following oil and gas royalty interests (in thousands):
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Share-Based Compensation (Tables) |
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Schedule of Restricted Stock Awards and Units Activity | The following table summarizes activity related to RSAs for the three months ended March 31, 2022:
The following table summarizes activity related to RSUs for the three months ended March 31, 2022:
The following table summarizes activity related to the RSAs under the 2021 Directors Plan for the three months ended March 31, 2022:
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Schedule of Performance Share Units Activity | The following table summarizes activity related to PSUs for the three months ended March 31, 2022:
(1)Includes 1,197 RTSR (as defined below) PSUs with a grant date fair value of $1,605 per share and 1,197 FCF (as defined below) PSUs with a grant date fair value of $1,105 per share.
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Schedule of Share-Based Compensation Expense | The following table summarizes our share-based compensation expense by line item in the condensed consolidated statements of income (in thousands):
(1)The Company recognized a tax benefit of $0.3 million related to share-based compensation for the three months ended March 31, 2022.
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Income Taxes (Tables) |
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Schedule of Components of Income Tax Expense (Benefit) | The calculation of our effective tax rate is as follows for the three months ended March 31, 2022 and 2021 (in thousands, except percentages):
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of EPS for three months ended March 31, 2022 and 2021 (in thousands, except number of shares and per share data):
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Changes in Equity (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | The following tables present changes in our equity for the three months ended March 31, 2022 and 2021 (in thousands, except shares and per share amounts):
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Business Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Financial Results | Segment financial results were as follows for the three months ended March 31, 2022 and 2021 (in thousands):
|
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Schedule of Total Assets And Property, Plant and Equipment | The following table presents total assets and property, plant and equipment, net by segment as of March 31, 2022 and December 31, 2021 (in thousands):
|
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 120,611 | $ 118,401 | |
Less: accumulated depreciation | (40,615) | (38,679) | |
Property, plant and equipment, net | 79,996 | 79,722 | |
Depreciation expense | 3,800 | $ 3,600 | |
Water service-related assets | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | 110,866 | 108,732 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | 9,147 | 9,071 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 598 | $ 598 |
Real Estate Activity - Schedule of Land and Real Estate Ownership (Details) $ in Thousands |
Mar. 31, 2022
USD ($)
a
|
Dec. 31, 2021
USD ($)
a
|
---|---|---|
Number of Acres | ||
Land (surface rights) (acre) | a | 823,445 | 823,452 |
Real estate acquired (acre) | a | 57,146 | 57,129 |
Total Real Estate Situated in Texas (acre) | a | 880,591 | 880,581 |
Net Book Value | ||
Land (surface rights) (in USD) | $ | $ 0 | $ 0 |
Real estate acquired | $ | 109,083 | 109,071 |
Total real estate situated in Texas (in USD) | $ | $ 109,083 | $ 109,071 |
Oil and Gas Royalty Interests (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Net Book Value | ||
Royalty interests acquired | $ 47,903 | $ 46,266 |
Total royalty interests, gross | 47,903 | 46,266 |
Less: accumulated depletion | (2,108) | (1,876) |
Total royalty interests, net | 45,795 | 44,390 |
1/16th nonparticipating perpetual royalty interests | ||
Net Book Value | ||
1/16th nonparticipating perpetual royalty interest | 0 | 0 |
1/128th nonparticipating perpetual royalty interests | ||
Net Book Value | ||
1/128th nonparticipating perpetual royalty interest | $ 0 | $ 0 |
Oil and Gas Royalty Interests - Narrative (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
a
$ / a
|
Mar. 31, 2021
USD ($)
|
|
Real Estate Properties [Line Items] | ||
Acquisition of royalty interests | $ 1,637 | $ 0 |
Additional real estate acquisitions | ||
Real Estate Properties [Line Items] | ||
Net royalty interests (in acres) | a | 92 | |
Acquisition of royalty interests | $ 1,600 | |
Average price per net royalty acre acquired (in USD per acre) | $ / a | 17,750 |
Share-Based Compensation - Share-Based Compensation - (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 1,505 | $ 0 |
Tax benefit related to share-based compensation | 300 | |
Salaries and related employee expenses (employee awards) | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 1,319 | 0 |
General and Administrative Expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 186 | $ 0 |
Income Taxes - Calculation of Effective Tax Rate (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 124,389 | $ 62,027 |
Income tax expense | $ 26,489 | $ 11,975 |
Effective tax rate | 21.30% | 19.30% |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 97,900 | $ 50,052 |
Basic EPS: | ||
Weighted Average Number of Shares Outstanding, Basic | 7,741,365 | 7,756,156 |
Basic earnings per share (in dollars per share) | $ 12.65 | $ 6.45 |
Diluted EPS: | ||
Weighted Average Number of Shares Outstanding, Basic | 7,741,365 | 7,756,156 |
Incentive and equity compensation plans (in shares) | 1,345 | 0 |
Weighted average shares outstanding for diluted EPS | 7,742,710 | 7,756,156 |
Diluted earnings per share (in dollars per share) | $ 12.64 | $ 6.45 |
Changes in Equity - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 11, 2022 |
|
Equity [Abstract] | |||
Payments for repurchase of common stock | $ 219 | $ 0 | |
Shares authorized to be repurchased | $ 100,000 |
Business Segment Reporting - Narrative (Details) a in Thousands |
Mar. 31, 2022
a
|
---|---|
West Texas | |
Segment Reporting Information [Line Items] | |
Area of land (in acres) | 880 |
Business Segment Reporting - Financial Results (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | $ 147,335 | $ 84,155 |
Net income | 97,900 | 50,052 |
Total capital expenditures | 3,005 | 2,738 |
Depreciation, depletion and amortization | 4,126 | 3,838 |
Land and resource management | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 113,347 | 57,790 |
Net income | 81,156 | 39,513 |
Total capital expenditures | 122 | 0 |
Depreciation, depletion and amortization | 536 | 494 |
Water services and operations | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 33,988 | 26,365 |
Net income | 16,744 | 10,539 |
Total capital expenditures | 2,883 | 2,738 |
Depreciation, depletion and amortization | $ 3,590 | $ 3,344 |
Business Segment Reporting - Assets and Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 856,569 | $ 764,064 |
Total consolidated property, plant and equipment, net | 79,996 | 79,722 |
Land and resource management | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 728,354 | 635,338 |
Total consolidated property, plant and equipment, net | 6,499 | 6,639 |
Water services and operations | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 128,215 | 128,726 |
Total consolidated property, plant and equipment, net | $ 73,497 | $ 73,083 |
Oil and Gas Producing Activities (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022
Boe
well
|
Mar. 31, 2021
Boe
|
Dec. 31, 2021
well
|
|
Extractive Industries [Abstract] | |||
Share of oil and gas produced in thousands per day | Boe | 20,800 | 16,400 | |
Number of oil and gas wells | well | 556 | 452 |
Subsequent Events (Details) - Subsequent event |
May 03, 2022
$ / shares
|
---|---|
Dividend declared | |
Subsequent Event [Line Items] | |
Annual cash dividend (in dollars per share) | $ 3.00 |
Special dividend | |
Subsequent Event [Line Items] | |
Annual cash dividend (in dollars per share) | $ 20.00 |
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