13 thoughts on “1Q20”

1. First and foremost, I hope this finds my fellow TPL fans safe and doing well.

   Secondly, I’ll take that water growth!

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2. This likely the high watermark for a while.

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3. This is likely the high watermark for a while.

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4. I felt this was pretty good given the circumstances.

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   • They receive royalty payments on a ~6-week lag; so this quarter’s royalty payments did not reflect the drop in oil prices. Q2 will have royalty payments from March/Apr/May. That will be more telling and probably not pretty.

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     • Thanks for this insight. Where can i read more on how they recieve royalty payments?

       Thanks again.

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       • I asked them.

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       • Touché

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5. Actually, it looks like margin is higher than 4Q19 and on par with 3Q19 if you exclude land/mineral rights sales. Plus a little more detail in their press release, not much, but its a start… hopefully they keep improving on the transparency front.

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   • I am pretty new to holding TPL shares, have been following the company for the past year or so and I am still amazed that this earnings release has more detail! It is a start but a long way to go.

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6. I’m really still concerned with the ratio of water services income and expenses. It’s even worse when you add the depreciation which can only be applied to equipment in that area.

   The sinful salaries also irritate the hell out of me.

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7. obviously there is more at work than just oil royalties, but would the late 90’s work as a comparison when Oil was below $20 again? https://www.macrotrends.net/1369/crude-oil-price-history-chart

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8. Q1 isn’t reflective of what’s currently going on. Let’s be honest, there are significant short-term WTI headwinds:

   (1) https://www.bloomberg.com/news/articles/2020-04-29/saudi-oil-flotilla-heading-to-u-s-will-worsen-port-congestion, and
   (2) https://oilprice.com/Energy/Crude-Oil/Fleet-Of-28-Saudi-Oil-Tankers-Could-Send-US-Oil-Prices-Crashing-In-May.html.

   I apologize in advance for (2)’s annoying ad fill.

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