Strong! Some land swapping reported.
The Trust reported net income of $71.3 million for the fourth quarter ended December 31, 2019, an increase of 13.8% over net income of $62.7 million for the fourth quarter ended December 31, 2018. The increase was principally related to increased oil and gas royalties, easements and other surface-related income and water sales.
In an exchange transaction, the Trust conveyed approximately 5,620 acres of land in exchange for approximately 5,545 acres of land, all in Culberson County. As the Trust had no cost basis in the land conveyed, the Trust recognized land sales revenue of $22.0 million for the fourth quarter ended December 31, 2019.
Back of the envelope I see a 23% increase in non-sale earnings and a 50% increase in expenses. Non-sale operating income is up 16%.
Looks to be about $40/share in cash on the balance sheet. Cash on the balance sheet is equivalent to ~5.5% of the market cap @ $726.50/share.