Texas Pacific Land Corporation (TPL)

[Enterprising Investor]

2014 Annual Report Discussion on Record 2014 Results.

The past year was extremely successful for Texas Pacific Land Trust. The Trust’s net income was $34,765,020, the highest in its 127 year history. Total operating revenues and investment income were $55,216,753, a 25.1% increase over 2013. This produced a net income per sub-share of $4.14, representing an increase of 31.0% over 2013 income per sub-share. These gains are due both to increased easements and sundry income and oil and gas royalty revenue. Domestic crude oil production was at its highest level in nearly 30 years and West Texas Intermediate (WTI) was priced between $91.17 and $107.95 per barrel throughout the first three quarters of 2014. Crude oil prices, however, fell dramatically in the fourth quarter of 2014. Though not included in 2014 results, the Trust made a sale of 19,607 acres, for a total of 19,840,000. This sale closed on January 29, 2015.