Texas Pacific Land Trust Announces First Quarter 2018 Financial Results
April 30 2018 - 4:30PM
Business Wire
Texas Pacific Land Trust (NYSE: TPL) today announced financial
results for the first quarter of fiscal 2018, which ended March 31,
2018.
Results for first quarter 2018:
- Net income of $43.8 million, or $5.60
per sub-share, for first quarter 2018, compared with $19.3 million,
or $2.43 per sub-share, for first quarter 2017.
- Revenues of $60.0 million for first
quarter 2018, compared with $30.4 million for first quarter
2017.
- Increases of 181.8% in water sales and
royalty revenue, 150.7% in oil and gas royalty revenue, and 14.2%
in easements and sundry income for first quarter 2018, compared
with first quarter 2017.
Further Details for first quarter 2018:
Oil and gas royalty revenue was $26.5 million for the first
quarter of 2018, compared with $10.6 million for the first quarter
of 2017, an increase of 150.7%. Crude oil and gas production
subject to the Trust’s royalty interests increased 129.0% and
154.4%, respectively, in the first quarter of 2018 compared to the
first quarter of 2017. In addition, the prices received for crude
oil production increased 13.5% in the first quarter of 2018
compared to the same quarter of 2017 while prices received for gas
production decreased 13.9% over the same time period.
Easements and sundry income was $17.0 million for the first
quarter of 2018, an increase of 14.2% compared with the first
quarter of 2017 when easements and sundry income was $14.9 million.
This increase resulted primarily from increases in seismic permit
income, sundry lease rental income, and temporary permit income.
These increases were partially offset by a decrease in pipeline
easement income of 15.8% to $8.2 million for the first quarter of
2018 compared to the first quarter of 2017 due to timing
differences resulting from a change in the form of our pipeline
easement agreements.
Water sales and royalty revenue was $13.6 million for the first
quarter of 2018, an increase of 181.8% compared with the first
quarter of 2017 when water sales and royalty revenue was $4.8
million.
Land sale revenue was $2.8 million for the first quarter of
2018. The Trust sold approximately 120 acres of land for an average
price of approximately $22,917 per acre. There were no land sales
in the first quarter of 2017.
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 March 31, 2018
2017 Oil and gas royalties $ 26,547 $ 10,588 Easements and
sundry income (1) 16,978 14,867 Water sales and royalties 13,607
4,828 Land sales 2,750 — Other operating income 125 124 Total
income $ 60,007 $ 30,407 Provision for income tax $ 10,820 $
9,638 Net income $ 43,791 $ 19,259 Net income per sub-share $ 5.60
$ 2.43 Weighted average sub-shares outstanding during period
7,818,168 7,919,085
_____________________________
(1) We adopted Accounting Standards Update
(“ASU”) No. 2014-09, “Revenue Recognition (Topic 606): Revenue from
Contracts with Customers” on January 1, 2018 using the full
retrospective method which required us to restate previously
reported results as though the standard had always been in effect.
Upon adoption of ASU 2014-09, we no longer defer revenue on our
term easements.
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Texas Pacific Land TrustRobert J. Packer, 214-969-5531General
Agent, Chief Financial Officer
Texas Pacific Land (NYSE:TPL)
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