Mar 31, 2024

Texas Pacific Q1 2024 Earnings Report

Texas Pacific Land Corporation reported strong Q1 2024 results, driven by surface-derived cash flows and record water segment revenues.

Key Takeaways

Texas Pacific Land Corporation announced its financial results for the first quarter of 2024, reporting a net income of $114.4 million and revenues of $174.1 million, which included record water segment revenues of $62.7 million. The company's royalty production was 24.8 thousand barrels of oil equivalent per day, and it repurchased $10.3 million of common stock. The company also announced the development of a new energy-efficient method of produced water desalination and treatment.

Net income reached $114.4 million, or $4.97 per share (diluted).

Revenues totaled $174.1 million, with record water segment revenues of $62.7 million.

Adjusted EBITDA was $152.0 million.

Royalty production amounted to 24.8 thousand barrels of oil equivalent (“Boe”) per day.

Total Revenue
$174M
Previous year: $146M
+19.0%
EPS
$4.97
Previous year: $3.75
+32.5%
Royalty production boe/day
24.8
Previous year: 20.9K
-99.9%
Dividend per share
$1.17
Previous year: $3.25
-64.0%
Gross Profit
$160M
Previous year: $137M
+16.4%
Cash and Equivalents
$837M
Previous year: $591M
+41.7%
Free Cash Flow
$145M
Previous year: $88M
+64.7%
Total Assets
$1.26B
Previous year: $955M
+31.8%

Texas Pacific

Texas Pacific

Texas Pacific Revenue by Segment

Forward Guidance

TPL is focused on maximizing value from its legacy asset base and exploiting unique opportunities.

Positive Outlook

  • Strategic investments in people.
  • Strategic investments in technology.
  • Strategic investments in assets.
  • Continued progress with beneficial reuse initiatives.
  • Developing innovative solutions for produced water in the Permian Basin.

Challenges Ahead

  • Impacted by commodity prices.
  • Impacted by development decisions made by customers.
  • Impacted by operating decisions made by customers.
  • Potential litigation.
  • Changes in general economic conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income