1Q21 Earnings


Press Release

I was coaching first base when I heard my phone whistle its notifcation for the earnings press release.  During a pitching change I quickly skimmed the document.  When the batter stepped in I got so distracted thinking about the $20MM buyback number that I sent my runner to steal 2nd with a runner already on that bag.  Thankfully the third base coach, who probably owns BSM, saw my folly and called his runner.  Some bad thows later and it all ended up ok.  But $20MM?

My expectations for the quarter were pretty light due to the tough winter conditions and pandemic hangover but I expected more from the buy back.  Is this management telling us the price is too high?

The quarter ended with $310MM (~$40/share) in cash on the balance sheet.  Do I get a dividend?  M&A inbound?

Water was challenging.  What’s the plan there?


9 thoughts on “1Q21 Earnings

  1. plus I saw where they want to hold the stock in treasury versus retire it? wtf is up with that?

    don’t know what they are thinking or playing

    Liked by 1 person

  2. Everyone, if you think this is a high price then you clearly have not done your due diligence. It is just the beginning. Get ready! Top of the 2nd!

    Liked by 3 people

  3. The 20 million buyback over the rest of the year seems like its for show, since they have nearly 300 million in cash. Its only at this stock price roughly 12,000 shares. Deducting the quarterly dividend still means even more in cash by the end of q2. Now that they are a c-corp, nothing keeps them from opportunistic land or other purchases, so that may be a potential reason. Nothing else makes much sense.

    After years of no buybacks, I was expecting a much higher rate, like the TPL of the past that gobbled up significant numbers of shares. The good news is we can now ask questions like this on the earnings call tomorrow.

    Did anyone else see on the consolidated statement of cash flow the issuance of 78k in stock, however the share count is the usual 7,756,156 number. Any ideas on what this means?

    Better times are ahead, and I am happy to see the trust with the goofy trustees for life is finally history. Still amazed at the stock price run from last year to now, and the many indexes that are now stockholders.

    Liked by 1 person

  4. Boy, there were underwhelming aspects to the 1Q21 report, and it will challenge a stock priced up like this. I’m not so concerned about the production numbers (we have a formidable position in the best basin in the U.S.) As others have mentioned, the worrying thing is the capital management.

    One of the huge appeals for TPL over the years was the tontine aspect of this position. Sitting on a huge pile of cash is typically a big temptation and trap to management. Nevertheless, I remain a huge bull and not going to sell. Even though today looks to be another big down day…

    Liked by 1 person

  5. Agree with Ted, the buyback is probably only for show, or maybe an attempt at placating investors. If it was the latter, I think it backfired.

    Liked by 1 person

  6. I also agree with Ted that the 20Mill buyback is more for show, and I like that show! After a long stretch of time with no buybacks whatsoever I welcome the 20Mill… not based on how much they are buying back (of course I’d love to see more) rather I see this as a reassuring indicator to stock holders that they still see buybacks as part of the overall strategy for return of capital over the long term and that makes me very happy. There was a lot of uncertainty on whether or not buybacks would return, we now know they will. The next step is assuring that budget for buybacks continues to grow. It seems sensible to me that they will hold cash at this point and explore opportunities for complimentary business expansion and reinforcing the 3 lines of business (which they also indicated). Nice and steady here… I thought the call was professional and exactly what I would expect for a first ever call.

    Liked by 2 people

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