Q vs Q : Running Thread

Using this space to highlight some of the notable changes from Q2 to Q3:

  • “There are a number of oil and gas wells that have been drilled but are not yet completed (“DUC”) where the Trust has a royalty interest. Currently, the Trust has identified 303 DUC wells subject to our royalty interest.”
    • This was 213 on 6/30.  DUCs up 42%
  • Cash on balance sheet up 29% (+$24MM) to $110MM
    • Total asset were up $43MM.
  • Cash on balance sheet represents $14.21 per share or 2.0% of the current market cap at $700/shr
  • Top line for Q2 and Q3 were nearly identical at $73.8MM and $73.2MM respectively.
    • As we know, we saw an un-lump Easement revenue period.  Additionally, I’ll speculate that O&G bottlenecks kept a lid on royalty top line.  Those are your drivers of lack-of-growth quarter on quarter.
  • Expenses were $24.1MM for the nine months ended 9/30/18.  The same period last year saw expenses of $6.1MM.
    • This is what you pay for $28MM in water top line growth ($47.4MM vs $19.6MM)
  • $40MM in CAPEX YTD thru third quarter.  Compare to $8MM during the same period last year.
    • #water
  •  Net income of $147MM for nine months ending 9/30/18.  NI of $73MM in the same period last year.  Taxes paid for both periods were $34MM and $31MM respectively.   Gotta love that.
  • 167k acres sold for $4.3MM or $26k/acre.  Extremely nice sale relative to past prints.
  • 7,786,692 in average outstanding shares for the quarter.  Compare to 7,803,162 the prior quarter.  Shares count down 16.5k or 0.21%.
  • 10,706 shares officially purchased at a weighted average print of $790.82
    • $8.5MM spent on shares.
    • Seems small relative to balance sheet cash build

 

 

 

 

 

 

 

4 thoughts on “Q vs Q : Running Thread

  1. Regarding your analysis point below… is it possible to tell how that $8.5MM spent on shares compares to previous quarters? It makes sense that the number of shares bought back decrease when share price is high, but I’m trying to understand if the amount they are spending on buybacks is comparable to past quarters, or has been declining.

    10,706 shares officially purchased at a weighted average print of $790.82
    $8.5MM spent on shares.
    Seems small relative to balance sheet cash build

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  2. I think you could go to each Q and look at the repurchase table. Multiply shares purchased by average price. There is a post way down at the beginning of the blog that shows % of shares retired on a periodic basis; it is trending down.

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