My way of backing into water. Back non-water revenue out of EBITDA. Add “old expenses” and legal (big $$$$) to the adjusted EBITDA number to get a ballpark water income. Look at water income relative to water top line to observe expenses and margins.
Seperately we can look at margin without asset sales.
Both margins are contracting.
It is understood that one has to spend money to make money, expecially in the water business, but I’d love more information on the end game.
The Texas Pacific Land Trust Investor 
This is to be expected in the water business. There is competition with a lot of players depending on the segment of the business. It is to the point were size matters and consolidation is happening. With that is additional capital/expense with the growth lowering margin. To be a player requires more than just selling water and disposal. There will be a continue trade off of capital/expense and resulting margin compaction. For TPL to be a major player will require acquisition and capital investment. What is the life cycle for the business, what margins can be projected out, is this where we want to pile in cash? I don’t have answers just needs professional strategic thinking and professional management.
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