Press release here.
There was lots of chatter around $7/share this quarter in Yahoo Finance discussion boards and Seeking Alpha comment threads. The report of $6.52/share is a little light relative to the aforementioned prediction but it represents a fine period of 53% and 145% growth in the O&G royalty and water businesses respectively.
The $6.52 Q3 print puts TPL at $21.79 per share in trailing 12mo earnings. If we stick with the 38x P/E that was discussed in the last post, that gets “fair value” to $828. I say “fair value” loosely as picking a P/E is more art than science.
In the coming days I’m going to do some segment analysis to show top line and bottom line trends. One thing that is becoming readily apparent is that easements and sundry income will be lumpy as easement income is no longer being smoothed.
One small aberration was the 167 acre land sale at $25.7k/acre. TPL land sales are rare these days and that price was really something. This isn’t going to happen but the whole trust sold at that valuation gets the value of the surface acreage to ~$23B. Again, that is a big stretch but the sale shows the “hidden asset” nature of TPL which is easy to overlook in the current era of high flying top and bottom line growth.