Texas Pacific Q3 2023 Earnings Report
Key Takeaways
Texas Pacific Land Corporation reported a net income of $105.6 million for Q3 2023, with revenues reaching $158.0 million. The company's royalty production was 21.8 thousand barrels of oil equivalent per day, and it generated $141.0 million in adjusted EBITDA and $106.1 million in free cash flow.
Net income reached $105.6 million, translating to $13.74 per share (diluted).
Revenues totaled $158.0 million.
Adjusted EBITDA amounted to $141.0 million.
Free cash flow generation reached $106.1 million.
Texas Pacific
Texas Pacific
Texas Pacific Revenue by Segment
Forward Guidance
The outlook remains robust for Permian development with increased permit and spud activity, a strong well inventory backlog, over 50 rigs operating on TPL royalty acreage, and a supportive commodity price backdrop.
Positive Outlook
- Improving oil and gas prices.
- Continued performance across surface and water assets.
- Strong free cash flow generation.
- Increased permit and new spud activity.
- Strong well inventory backlog.
Challenges Ahead
- Recent oil and gas production volumes impacted by infrastructure challenges.
- Turned-to-sales timing from greater co-completion developments.
- Decrease in oil and gas royalty revenue due to lower average commodity prices.
- Decrease in oil and gas royalty revenue due to lower production volumes.
- Increase in total operating expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income