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.
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 September 30,
2018 2017 Oil and gas royalties $ 31,253 $ 20,481
Easements and sundry income (1) 22,068 23,454 Water sales and
royalties 18,178 7,917 Land sales 1,543 — Other operating income
126 125 Total income $ 73,168 $ 51,977 Income
taxes $ 12,433 $ 16,322 Net income $ 50,762 $ 33,002 Net income per
Sub-share Certificate — basic and diluted $ 6.52 $ 4.20 Weighted
average number of Sub-share Certificates outstanding during period
7,786,692 7,851,916 (dollars in thousands, except share and
per share amounts)
Nine Months Ended September
30, 2018 2017 Oil and gas royalties $ 88,078 $
43,252 Easements and sundry income (1) 66,845 51,247 Water sales
and royalties 47,428 19,584 Land sales 4,293 220 Other operating
income 375 374 Total income $ 207,019 $ 114,677
Income taxes $ 36,415 $ 35,995 Net income $ 147,056 $ 72,611
Net income per Sub-share Certificate — basic and diluted $ 18.86 $
9.22 Weighted average number of Sub-share Certificates outstanding
during period 7,797,262 7,872,554
----------------------------
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181031005710/en/
Texas Pacific Land TrustRobert J. Packer, 214-969-5531General
Agent, Chief Financial Officer
Texas Pacific Land (NYSE:TPL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Texas Pacific Land (NYSE:TPL)
Historical Stock Chart
From Apr 2023 to Apr 2024