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Fourth Quarter and Full Year 2019 Results
DALLAS--(BUSINESS WIRE)-- Texas Pacific Land Trust (NYSE:TPL) today announced financial and operating results for the fourth quarter and year ended December 31, 2019.
Results for the fourth quarter of 2019:
Net income of $71.3 million, or $9.20 per Sub-share Certificate, for the fourth quarter ended December 31, 2019 compared with $62.7 million, or $8.06 per Sub-share Certificate, for the fourth quarter ended December 31, 2018.
Revenues of $113.3 million for the fourth quarter ended December 31, 2019, compared with $93.2 million for the fourth quarter ended December 31, 2018.
Increases of 26.6% in easements and other surface-related income, 22.0% in oil and gas royalty revenue and 20.6% in water sales and royalty revenue for the fourth quarter ended December 31, 2019 compared with the fourth quarter ended December 31, 2018.
EBITDA of $94.9 million for the fourth quarter ended December 31, 2019, compared with $79.3 million for the fourth quarter of 2018, an increase of 19.6%.
Results for the year ended December 31, 2019:
Net income of $320.9 million, or $41.38 per Sub-share Certificate, for the year ended December 31, 2019 compared with $209.7 million, or $26.93 per Sub-share Certificate, for the year ended December 31, 2018.
Revenues of $490.5 million for the year ended December 31, 2019, compared with $300.2 million for the year ended December 31, 2018.
Increases of 32.9% in water sales and royalty revenue, 30.0% in easements and other surface-related income and 24.9% in oil and gas royalty revenue for the year ended December 31, 2019 compared with the year ended December 31, 2018.
EBITDA of $413.4 million for the year ended December 31, 2019, compared with $264.3 million for the year ended December 31, 2018, an increase of 56.4%.
Further details for the fourth quarter of 2019:
The Trust reported net income of $71.3 million for the fourth quarter ended December 31, 2019, an increase of 13.8% over net income of $62.7 million for the fourth quarter ended December 31, 2018. The increase was principally related to increased oil and gas royalties, easements and other surface-related income and water sales.
Oil and gas royalty revenue was $43.6 million for the fourth quarter ended December 31, 2019, compared with $35.8 million for the fourth quarter ended December 31, 2018, an increase of 22.0%. Crude oil and gas production subject to the Trust’s royalty interests increased 45.6% and 33.4%, respectively, in the fourth quarter ended December 31, 2019 compared to the fourth quarter ended December 31, 2018. While crude oil and gas production increased in the fourth quarter ended December 31, 2019 compared to the same period of 2018, the prices received for crude oil and gas production decreased 3.6% and 41.1%, respectively, over the same time period.
Easements and other surface-related income was $27.7 million for the fourth quarter ended December 31, 2019, an increase of 26.6% compared with the fourth quarter ended December 31, 2018 when easements and other surface-related income was $21.9 million. The increase in easements and other surface-related income was largely driven by increases of $3.1 million in commercial lease revenue (largely due to an increase in saltwater disposal royalties) and $2.0 million in pipeline easement income for the fourth quarter ended December 31, 2019 compared to the same period of 2018.
Water sales and royalty revenue was $19.9 million for the fourth quarter ended December 31, 2019, an increase of 20.6% compared with the fourth quarter ended December 31, 2018 when water sales and royalty revenue was $16.5 million. This increase was principally due to a 50.4% increase in the number of barrels of sourced and treated water sold in the fourth quarter of 2019 over the same period in 2018, partially offset by decreased water royalties.
In an exchange transaction, the Trust conveyed approximately 5,620 acres of land in exchange for approximately 5,545 acres of land, all in Culberson County. As the Trust had no cost basis in the land conveyed, the Trust recognized land sales revenue of $22.0 million for the fourth quarter ended December 31, 2019.
Further details for the year ended December 31, 2019:
The Trust reported net income of $320.9 million for the year ended December 31, 2019, an increase of 53.0% over net income of $209.7 million for the year ended December 31, 2018. Net income for the year ended December 31, 2019 included a $100 million land sale. Excluding the impact of the land sale, net of income tax, for the year ended December 31, 2019, net income was $241.9 million, a 15.3% increase over net income for the year ended December 31, 2018. The 15.3% increase was principally related to increased oil and gas royalties, easements and other surface-related income and water sales.
Oil and gas royalty revenue was $154.7 million for the year ended December 31, 2019, compared with $123.8 million for the year ended December 31, 2018, an increase of 24.9%. Crude oil and gas production subject to the Trust’s royalty interests increased 48.3% and 89.3%, respectively, in the year ended December 31, 2019 compared to the year ended December 31, 2018. While crude oil and gas production increased in the year ended December 31, 2019 compared to December 31, 2018, the prices received for crude oil and gas production decreased 8.0% and 49.3%, respectively, over the same time period.
Easements and other surface-related income was $115.4 million for the year ended December 31, 2019, an increase of 30.0% compared with the year ended December 31, 2018 when easements and other surface-related income was $88.7 million. The increase in easements and other surface-related income was principally related to increases of $19.0 million in pipeline easement income and $10.6 million in commercial lease revenue (largely due to an increase in saltwater disposal royalties), for the year ended December 31, 2019 compared to the same period of 2018. These increases were partially offset by a $3.7 million decrease in temporary permit income over the same time period.
Water sales and royalty revenue was $84.9 million for the year ended December 31, 2019, an increase of 32.9% compared with the year ended December 31, 2018 when water sales and royalty revenue was $63.9 million. This increase was principally due to a 44.0% increase in the number of barrels of sourced and treated water sold during the year ended December 31, 2019 over the same period in 2018, partially offset by decreased water royalties.
The Trust recognized land sales revenue of $135.0 million for the year ended December 31, 2019 and $4.4 million for the comparable period of 2018. The increase in land sales revenue is principally related to a $100 million land sale in January 2019 and land sales revenue of $22.0 million related to a land exchange transaction in December 2019.
About Texas Pacific Land Trust
Texas Pacific Land Trust is one of the largest landowners in the State of Texas with approximately 900,000 acres of land in West Texas. The Trust was organized under a Declaration of Trust to receive and hold title to extensive tracts of land in the State of Texas, previously the property of the Texas and Pacific Railway Company, and to issue transferable Certificates of Proprietary Interest pro rata to the holders of certain debt securities of the Texas and Pacific Railway Company. Texas Pacific Land Trust’s trustees are empowered under the Declaration of Trust to manage the lands with all the powers of an absolute owner. Texas Pacific Land Trust is not a REIT.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200130005545/en/
Robert Packer
(214) 969-5530
Robert@tpltrust.com
Source: Texas Pacific Land Trust
Released January 30, 2020
FYI Public float for Verus is listed as 1.6B on marketwatch and WSJ sites, so the OTC figure is lagging behind.
https://www.wsj.com/market-data/quotes/VRUS
Dewm, Monaker actually has fewer Verus shares once you include the Subsequent Events addendum in its last Q:
"Between December 1, 2019 and January 8, 2020, the Company has sold 9,083,758 shares of Verus common stock to the public in open market transactions and generated $176,374 in gross proceeds."
87,059,682
- 9,083,758
= 77,975,924
Monaker has notes due Feb 1, so could well be doing some cash-raising.
It's the info email on the BLF site.
Shinook, the promo pamphlets are from BLF itself. Jim Wheeler emailed me back within a few minutes. I got the Dodgers info, but they have tailored the pdfs for each of the 30 teams --
https://twitter.com/NesteggMcMuffin/status/1221845744434343943
Getting promotional possibilities inside the stadiums is a big step forward.
If people put the same effort into DD as they do venting about short-term trading action, they would feel a lot more secure.
So much bedwetting over a late filing. I’m keeping my eye on those “several national retailers” interested in putting MLB range on their shelves.
No jitters here. I know what I own.
Thanks Swan. Big picture outweighs any filing delays.
I posted some of BLF's pdfs for retail that Jim Wheeler sent me -- https://twitter.com/NesteggMcMuffin/status/1221845744434343943
Getting promotional opportunities inside the stadiums is big step forward.
https://twitter.com/BigLeagueFoods/status/1221830087244484608 BLF onto 2nd production test.
10K was late last year and we still ran like crazy. If it is late, just means new auditor is playing catch up and Nutribrands fins had to be included, even though that deal only closed on the last day of the quarter.
Makes zero difference in the long run.
PS Have to think Verus new sales director Bob Holz was a factor in closing the recent retail deal. He worked previously with Kroger (who own Ralphs et al) and Target.
Target has MLB fan page on its shopping site and big sports display section. So my bet is they are the “top-tier national chain.”
Pole, update on my last post. Monaker 8K shows Simon Orange didn't end up buying his $200K of Verus preferred shares, only Don Monaco did.
"The sales contemplated by the Stock Purchase Agreements with the Trust and Kerby closed on October 30, 2019 and the sale contemplated by the Stock Purchase Agreement with Orange is anticipated to close shortly after November 4, 2019."
So the word "anticipated" in any Monaker filing basically means never going to happen.
Instead, Agent Orange (who's actually a UK based investor) bought just $10K of Monaker stock.
"On December 4, 2019, the Company issued 5,000 shares of common stock to Simon Orange, a director of the Company, for services rendered, valued at $10,050."
8K also reveals Monaker's CFO has jumped ship.
Hope there's enough life jackets for everyone.
Pole, they do still own 18M preferred as far as we know, but I wouldn't be surprised if Monaker management also snaps them like the other ones.
Monaker needs so much cash, it's not even funny.
Looks like it's a combo of everything from WTI drop to coronavirus fears hitting oil demand. https://www.cnbc.com/2020/01/22/oil-markets-global-crude-oil-supply-in-focus.html
Trading on this ticker is now officially bipolar. Price panic drops just as the 50 SMA is crossing back above the 200. All v. strange with most likely strong earnings figures coming in 6 days.
Is it a combo of global oil jitters + C Corp doubts?
What am I missing here?
Pole, you're not reading it correctly. You're adding numbers, when you should be subtracting.
Monaker started with 44.4M preferred Verus shares and then sold 25.5M to its board members $425,000 in October, leaving them with 18.9M preferred shares, not 62M as you thought.
"As of November 30, 2019, and February 28, 2019, Monaker owned 18,907,601 and 44,470,101 shares of Verus Series A Preferred Stock, respectively."
Key word "respectively", therefore:
44,470,101
- 25,562,500
= 18,907,601
Sale of Verus Series A Preferred Stock to Directors
On October 29, 2019, the Company entered into Stock Purchase Agreements with (a) Monaco Investment Partners, LP, of which Donald Monaco is the managing partner and a member of the Board of Directors of the Company; (b) Simon Orange, a member of the Board of Directors of the Company; and (c) William Kerby, the Chief Executive Officer and director of the Company. Pursuant to the Stock Purchase Agreements, the Company agreed to sell the purchasers 25,562,500 shares (1,562,500 shares to Mr. Kerby and 12,500,000 shares to each of Monaco Investment Partners, LP and Mr. Orange) of restricted Series A Convertible Preferred Stock of Verus International, Inc. (“Verus”). The purchase price for the Verus shares was determined by the Board of Directors of the Company, based on among other things, the recent trading prices of Verus’ common stock on the OTCQB Market, as publicly reported. The Company received net proceeds of $425,000 from the Stock Purchase Agreements.
Even better - a “top-tier national chain.”
First of many, I would wager.
No recount required. Verus far and away the most popular NIBA video on Youtube --
https://investorshub.advfn.com/uimage/uploads/2020/1/22/lmgtxScreen_Shot_2020-01-22_at_3.51.10_PM.png
Interesting jittery reaction by the market to C Corp news. Long way to go with the conversion and what form it takes, so maybe that prompted some hasty exits. Overall, I think conversion will be a good thing and lead to better management and better deployment of the huge cash pile. Just need a safeguard against any takeover bids, such as 70% shareholder approval, so the assets can be fully exploited over next decade.
Haha. Anytime.
JV, I can only repeat what I posted on Saturday:“Note says to me company already has good returns for the principal in place so would rather move forward than wait for domestic credit line.”
“Bear in mind the General Counsel’s quote on his role overcoming the biggest challenge for Verus:
“To help the company continue to grow but grow in a smart way that minimizes risk.”
I have been watching Verus for two years now and invested for 18 months. I know what I own. The note was uncharacteristic, but I trusted the explanation from the company would justify it. And it has big time.
A fast-track order from a top tier national chain is a massive breakthrough and too good to pass up, even if it means taking an interim note on lesser terms.
Pen, I think announcing the last Q early created a false expectation of a big surprise and when it didn't come in the conference call, contributed to the price drop the next day. Monaker most likely dumping a few didn't help.
Better to announce 10K on time and then release more news to bolster the share price.
Even better, it's a "top-tier national chain."
IR to fellow long: "They had a deal close at the Vegas show and it had custom packaging, a tight timeline, and a top-tier national chain. You can not say "no" under those circumstances."
"The new packaging idea is brilliant and the customer is national -- so this is going to put the candy on the map -- figuratively and literally.
Consider this an expedited loan necessary to ink a major deal, so a kind of expeditor charge as the first step to much larger business that will be financed by better loan and credit facilities in the future."
IR email confirms Verus closed a deal with a “national chain” for MLB product during the Vegas show.
So new note was to ensure they could meet the new customer deadline.
Details being held back “as a courtesy” to protect the customer’s exclusive product design.
Email to fellow long attached here --
https://investorshub.advfn.com/uimage/uploads/2020/1/21/vodv[OLwpDK5z.jpg
hummbug, I will personally FedEx a pie to Oracle Park so you eat up like a man. Mark it.
$VRUS updates in summary:
* The new financing is indeed a short-term, one-off measure to speed up a new production order in time for baseball season
* New credit line and larger financing will fund rest of the year's growth.
* The new deal is with a national chain that requires custom packaging (something like a novelty design or a family-size packet exclusive to a Costco or CVS?)
* MLB products now rolling out to 50,000 stores, up from 25,000, and looking to be in "every major box store" this year
* Gamefication and social media apps featuring players underway to tie with the MLB range (mPhase connection coming into focus?)
* Next year "you'll be buying ice cream in all stadiums"
* "145-150 plus %" growth for next five quarters
* Working on moving into cricket and soccer, domestically and internationally.
* And Nutribrands revamps still be unveiled...
Sweat the fins or bet the future.
So NIBA video says 50,000 stores for candy up from 25,000 stores. No wonder they’re ramping up production.
Wetbar, Beardy Boy doesn't understand the "first investor" he cites with 512 million shares is Andrew Garnock.
Then again, no one ever said male models were smart.
WON'T WORRY ABOUT MONAKER CHECK OUT THE 512,333,333 SHARES.
ON JUNE 4, 2019, THE COMPANY ISSUED THE 512,333,333 SHARES OF ITS COMMON STOCK TO THE FIRST INVESTOR.
UNSUSPECTED SHAREHOLDER HAVE NO IDEA WHAT'S COMING.
LOL.
Pro, another factor for the $2M credit minimum in the two-month lockout clause:
"Mr. Cutchens will receive a base salary of $75,000 per year, which base salary shall increase to $150,000 at such time that the Company completes a capital raise in excess of $3,000,000."
Sausage, the fancy fast machines are closer to a $100,000 new. If you snagged a secondhand one on ebay, you'd probably end up spending twice as much again on a mechanic!
Another way to look at the new note is shareholders only suffer dilution if the stock does well and holds before Verus pays it back.
In which case it ends being a similar deal for shareholders as when Garnock added 41,666,666 shares for $500,000 in May.
As long as the funds are being deployed to ensure fast return of revenue, like getting gummies onto shelves for Opening Day, I'm okay with it, but one would expect a domestic commercial credit line to fall into place hereafter.
My back of the envelope calculation for the Hayssen Ultima packaging machine in the BLF video
are very encouraging. Even the slower machines can crank out up to 100 packs a minute...
so 6000 per hour... 40,000 a day allowing for breaks, repairs, etc.
200,000 gummi bags a week @ $2 retail = $800K in sales a month.
With margins of 40% for in-house product, no wonder Verus is kitting out its own facility to produce for 30 teams.
Renegades, clause 4 July sweetener is also protected by 8 (n) clause further down:
"If the Company effectuates a reverse stock split, the Alternative Conversion Price will not be affected by such split and remain at the price listed in paragraph 4(a)."
This would further confirm the company's stated strategy of an r/s on "massive business strength" to uplist by end of the current quarter, which can only be achieved as I see it in conjunction with some kind of massive merger news.
For sure. Although the share price action for past six months has been very different from the first six months of 2019.
It still says to me the company is supremely confident of both paying this back early, and a much higher share price by July.
Clause 4 says to me company already knows how it will pay back this note long before July.
Hard to see McGowan allowing otherwise.
For comparison, the April 25, 2019 note was $600K at $90K in original issuance discounts (OIDs) at 5% due Nov 12 and conversion price of $.10 per share.
This note was paid off in November.
The July 1, 2019 note was for $605K with $90K in OIDs at 4% with conversion price of $.10
The September 17, 2019 note was $660K with $110K in OIDs for a year at 4% convertible at $0.10 per share.
This new note is $605K with $90K in OIDs for a year at 4% convertible at $0.015 per share.
The conversion price is the big difference obviously; almost feels like a way to sell 40M shares to a friendly investor, and Verus gets to write off the OID as loan interest.
Company explanation definitely needed.
The $15K legal fees are standard.
Wasn’t a serious suggestion, folks. Note says to me company already has good returns for the principal in place so would rather move forward than wait for domestic credit line.
Bear in mind the General Counsel’s quote on his role overcoming the biggest challenge for Verus:
“To protect the company and mitigate risks in the least intrusive way in terms of the growth of the company [...] To help the company continue to grow but grow in a smart way that minimizes risk and protects the company.”
Revenue growth will increasingly outpace financing costs.
MLB candy is on fast track to go to distributor in Feb to hit shelves in March, but Vivamil energy shot revamp can’t be far behind.
Be hilarious if the new note was just to buy a bunch of Monaker’s Verus shares.
Another note at 4% for a year. Time to fund some more back orders.
Break out revenues coming in 2020.