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