Texas Pacific Land Trust (NYSE: TPL) today announced financial
results for the fourth quarter and year end of fiscal 2017, which
ended December 31, 2017.
Results for fourth quarter 2017:
- Net income of $18.4 million, or $2.35
per sub-share, for fourth quarter 2017, compared with $10.9
million, or $1.37 per sub-share, for fourth quarter 2016.
- Revenues of $38.3 million for fourth
quarter 2017, compared with $17.6 million for fourth quarter
2016.
- Increases of 324.4% in easements and
sundry income, 171.8% in water sales and royalty revenue, and 76.8%
in oil and gas royalty revenue for fourth quarter 2017, compared
with fourth quarter 2016.
Results for the year ended December 31, 2017:
- Net income of $76.4 million, or $9.72
per sub-share, for the year ended December 31, 2017, compared with
$37.2 million, or $4.66 per sub-share, for the year ended December
31, 2016.
- Revenues of $132.4 million for the year
ended December 31, 2017, compared with $59.9 million for the year
ended December 31, 2016.
- Increases of 214.3% in water sales and
royalty revenue, 144.0% in easements and sundry income, and 104.4%
in oil and gas royalty revenue for the year ended December 31,
2017, compared with the year ended December 31, 2016.
Further Details for fourth quarter 2017:
Easements and sundry income was $16.2 million for the fourth
quarter of 2017, an increase of 324.4% compared with the fourth
quarter of 2016 when easements and sundry income was $3.8 million.
This increase resulted primarily from increases in pipeline
easement income, material sales, temporary permit income and, to a
lesser extent, sundry lease rental income. Pipeline easement income
increased 139.8% to $8.3 million (before deferral of term
easements) for the fourth quarter of 2017 compared to the fourth
quarter of 2016. Material sales increased 928.0% to $3.5 million
for the fourth quarter of 2017 compared to the fourth quarter of
2016.
Oil and gas royalty revenue was $16.0 million for the fourth
quarter of 2017, compared with $9.1 million for the fourth quarter
of 2016, an increase of 76.8%. Crude oil and gas production subject
to the Trust’s royalty interests increased 55.5% and 77.3%,
respectively, in the fourth quarter of 2017 compared to the fourth
quarter of 2016. In addition, the prices received for crude oil
production increased 14.9% in the fourth quarter of 2017 compared
to the same quarter of 2016 while prices received for gas
production decreased 3.0% over the same time period.
Water sales and royalty revenue was $6.0 million for the fourth
quarter of 2017, an increase of 171.8% compared with the fourth
quarter of 2016 when water sales and royalty revenue was $2.2
million.
Further Details for year ended December 31, 2017:
Easements and sundry income was $44.8 million for the year ended
December 31, 2017, an increase of 144.0% compared with the year
ended December 31, 2016 when easements and sundry income was $18.3
million. This increase resulted primarily from increases in
pipeline easement income, temporary permit income, material sales
and, to a lesser extent, sundry lease rental income. Pipeline
easement income increased 141.7% to $41.7 million (before deferral
of term easements) for the year ended December 31, 2017 compared to
the year ended December 31, 2016. Material sales increased 481.1%
to $7.1 million for the year ended December 31, 2017 compared to
the year ended December 31, 2016.
Oil and gas royalty revenue was $61.3 million for the year ended
December 31, 2017, compared with $30.0 million for the year ended
December 31, 2016, an increase of 104.4% (78.7% excluding the
Chevron settlement). Crude oil and gas production subject to the
Trust’s royalty interests increased 43.8% and 59.8%, respectively,
in the year ended December 31, 2017 compared with the year ended
December 31, 2016. In addition, the prices received for crude oil
and gas production increased 22.6% and 16.0%, respectively, in the
year ended December 31, 2017 compared to the year ended December
31, 2016. The changes in production and price for the year ended
December 31, 2017 compared to the year ended December 31, 2016
exclude the effect of the Chevron settlement.
Water sales and royalty revenue was $25.5 million for the year
ended December 31, 2017, an increase of 214.3% compared with the
year ended December 31, 2016 when water sales and royalty revenue
was $8.1 million.
Texas Pacific Land Trust is not a
REIT.
This news release may contain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements regarding the Trust's
future operations and prospects, the markets for real estate in the
areas in which the Trust owns real estate, applicable zoning
regulations, the markets for oil and gas, production limits on
prorated oil and gas wells authorized by the Railroad Commission of
Texas, expected competitions, management's intent, beliefs or
current expectations with respect to the Trust's future financial
performance and other matters. We assume no responsibility to
update any such forward-looking statements.
TEXAS PACIFIC LAND TRUST
REPORT OF
OPERATIONS – UNAUDITED
(dollars in thousands, except share and per share amounts)
Three
Months Ended December 31, 2017 2016 Oil and gas
royalties $ 16,026 $ 9,065 Easements and sundry income (1) 16,172
3,810 Water sales and royalties 5,953 2,190 Land sales — 2,374
Other income 170 134 Total income $ 38,321 $ 17,573
Provision for income tax (2) $ 15,554 $ 5,174 Net income $
18,359 $ 10,907 Net income per sub-share $ 2.35 $ 1.37 Average
sub-shares outstanding during period 7,828,261 7,936,789
Year Ended December 31, 2017 2016 Oil
and gas royalties $ 61,315 $ 29,997 Easements and sundry income (1)
44,760 18,346 Water sales and royalties 25,536 8,125 Land sales 220
2,945 Other income 582 527 Total income $ 132,413 $
59,940 Provision for income tax (2) $ 43,499 $ 17,847 Net
income $ 76,361 $ 37,240 Net income per sub-share $ 9.72 $ 4.66
Average sub-shares outstanding during period 7,854,705 7,989,030
_____________
(1) The Trust deferred $2.9 million and $2.1 million of
easement income for the fourth quarter of 2017 and 2016,
respectively. For the years ending December 31, 2017 and 2016, the
Trust deferred easement income of $26.0 million and $7.8 million,
respectively. (2) Provision for income tax for the fourth
quarter and the year ended December 31, 2017 includes additional
income tax expense of $4.5 million related to the change in the
deferred tax asset as of December 31, 2017 resulting from the
reduction in the federal income tax rate from 35% to 21% (effective
January 1, 2018). Without the additional income tax expense, net
income per sub-share would have been $2.92 and $10.30 for the
fourth quarter of 2017 and the year ended December 31, 2017,
respectively.
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version on businesswire.com: http://www.businesswire.com/news/home/20180131006223/en/
Texas Pacific Land TrustRobert J. Packer, 214-969-5531General
Agent, Chief Financial Officer
Texas Pacific Land (NYSE:TPL)
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