Replies to post #261 on Texas Pacific Land Corporation (TPL)

[Nestegg McMuffin]

Massive increases in net income across the board - gas, oil, water, easements. More than double in some cases. This is a cash cow even at 750 a share.

[Enterprising Investor]

TPL had a good day (8/01/18)

TEXAS PACIFIC LAND TRUST (TPL)

Last Trade [tick] 791.0000[+]
Volume 28,577
Net Change 50.9200
Net Change % 6.88%

[Enterprising Investor]

Texas Pacific Land Trust Announces Third Quarter 2018 Financial Results (10/31/18)

DALLAS--(BUSINESS WIRE)--Texas Pacific Land Trust (NYSE: TPL) today announced financial results for the third quarter ended September 30, 2018.

Results for the third quarter of 2018:

• Net income of $50.8 million, or $6.52 per Sub-share Certificate, for the third quarter of 2018, compared with $33.0 million, or $4.20 per Sub-share Certificate, for the third quarter of 2017.

• Revenues of $73.2 million for the third quarter of 2018, compared with $52.0 million for the third quarter of 2017.

• Increases of 129.6% in water sales and royalty revenue and 52.6% in oil and gas royalty revenue (144.7% excluding the arbitration settlement with Chevron U.S.A., Inc. (the "Chevron Settlement") in the third quarter of 2017), partially offset by a decrease of 5.9% in easements and sundry income for the third quarter of 2018, compared with the third quarter of 2017.

Results for the nine months ended September 30, 2018:

• Net income of $147.1 million, or $18.86 per Sub-share Certificate, for the nine months ended September 30, 2018, compared with $72.6 million, or $9.22 per Sub-share Certificate, for the nine months ended September 30, 2017.

• Revenues of $207.0 million for the nine months ended September 30, 2018, compared with $114.7 million for the nine months ended September 30, 2017.

• Increases of 142.2% in water sales and royalty revenue, 103.6% in oil and gas royalty revenue (147.8% excluding the Chevron Settlement in 2017), and 30.4% in easements and sundry income for the nine months ended September 30, 2018, compared with the nine months ended September 30, 2017.

Further details for the third quarter of 2018:

Oil and gas royalty revenue was $31.3 million for the third quarter of 2018, compared with $20.5 million for the third quarter of 2017, an increase of 52.6% (144.7% excluding the $7.7 million Chevron Settlement received in September 2017). Crude oil and gas production subject to the Trust’s royalty interests increased 98.9% and 174.7%, respectively, in the third quarter of 2018 compared to the third quarter of 2017. In addition, the prices received for crude oil production increased 31.0% in the third quarter of 2018 compared to the same quarter of 2017 while prices received for gas production decreased 26.5% over the same time period. The changes in production and price for the third quarter of 2018 compared to the third quarter of 2017 exclude the effect of the Chevron Settlement.

Easements and sundry income was $22.1 million for the third quarter of 2018, a decrease of 5.9% compared with the third quarter of 2017 when easements and sundry income was $23.5 million. This decrease resulted primarily from a decrease in pipeline easement income, partially offset by an increase in lease rental income for the third quarter of 2018 compared to the third quarter of 2017. Pipeline easement income decreased $4.3 million in the third quarter of 2018 compared to the same quarter of 2017, while lease rental income increased $2.4 million over the same time period.

Water sales and royalty revenue was $18.2 million for the third quarter of 2018, an increase of 129.6% compared with the third quarter of 2017 when water sales and royalty revenue was $7.9 million.

Further details for the nine months ended September 30, 2018:

Oil and gas royalty revenue was $88.1 million for the nine months ended September 30, 2018, compared with $43.3 million for the nine months ended September 30, 2017, an increase of 103.6% (147.8% excluding the $7.7 million Chevron Settlement received in September 2017). Crude oil and gas production subject to the Trust’s royalty interests increased 115.2% and 156.8%, respectively, in the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017. In addition, the prices received for crude oil production increased 24.2% in the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017, while prices received for gas production decreased 24.8% over the same time period. The changes in production and price for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 exclude the effect of the Chevron Settlement.

Easements and sundry income was $66.8 million for the nine months ended September 30, 2018, an increase of 30.4% compared with the nine months ended September 30, 2017 when easements and sundry income was $51.2 million. This increase resulted primarily from increases in lease rental income, temporary permit income and pipeline easement income for the nine months ended September 30, 2018 compared to the same period of 2017. Lease rental income increased $5.8 million for the nine months ended September 30, 2018 compared to the same period of 2017. Temporary permit income increased $5.4 million for the nine months ended September 30, 2018 compared to the same quarter of 2017, and pipeline easement income increased $3.7 million over the same time period.

Water sales and royalty revenue was $47.4 million for the nine months ended September 30, 2018, an increase of 142.2% compared with the nine months ended September 30, 2017 when water sales and royalty revenue was $19.6 million.

Land sales revenue was $4.3 million for the nine months ended September 30, 2018. The Trust sold approximately 167 acres of land for an average price of approximately $25,734 per acre. Land sales revenue was $0.2 million for the nine months ended September 30, 2017.

Texas Pacific Land Trust is not a REIT.

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https://www.businesswire.com/news/home/20181031005710/en/Texas-Pacific-Land-Trust-Announces-Quarter-2018