2Q21 Earnings

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Texas Pacific Land Corporation Announces Second Quarter Results :: Texas Pacific Land Corporation (TPL)

Production pretty flat but prices up. $330MM in cash on the sheet.

Our total revenues increased $38.6 million for the second quarter of 2021 compared to the same period of 2020, largely driven by the $37.7 million increase in oil and gas royalty revenue. Our share of production was approximately 16.4 thousand barrels of oil equivalent (“Boe”) per day for the second quarter of 2021 compared to 15.7 thousand Boe per day for the same period of 2020. The average realized price was $40.83 per Boe for the second quarter of 2021, compared to $15.02 per Boe for the comparable period of 2020. Water sales and produced water royalties increased $4.1 million and $2.3 million, respectively, for the second quarter of 2021 compared to the second quarter of 2020. The increase in water sales for the second quarter of 2021 compared to the same period of 2020 is principally due to a 70.8% increase in the number of barrels of sourced and treated water sold. These increases in revenue were partially offset by easements and other surface-related income, which decreased $2.7 million for the second quarter of 2021 compared to the same period of 2020. These revenue streams are directly impacted by development and operating decisions in the Permian Basin made by our customers and commodity prices, among other factors.

9 thoughts on “2Q21 Earnings”

  1. I wonder how many employees there are to spend almost $25M in salaries & expenses. That rounds out to about $100M for the year for this type of business. There can’t be much for anything other than the water business.

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    • The salaries and employee expenses were 23.3 million for six months (not the quarter), which includes 6.7 million in severance costs.

      They bought back another 2,059 shares in July, at least thats a slight pickup in pace.

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  3. Sam78 is right on it being a 6 month figure, but that is still excessive to me, and I still can’t swallow a severance package of that amount for a company of this size. It seems that the contracts signed with the executives isn’t earned by the amount of effort they have to put forth to generate a pot of passive income.

    I also noted somewhere that they aren’t retiring shares they buy back. I find that troubling.

    Having more DUCs is great because companies show long term future interest by drilling them.

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    • Buybacks are being held in treasury.
      What are the Limitations of Treasury Stock?

      No voting rights
      Not entitled to receive dividends
      Not included in the calculation of outstanding shares
      Do not exercise preemptive rights as a shareholder
      Not entitled to receive net assets in case the company liquidates
      In some countries, the number of treasury stocks held by companies is regulated – total treasury stock cannot exceed the maximum proportion of capitalization specified by law.

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  4. I listened to the last conference call last quarter and only 2 people asked questions. I plan on asking a question tomorrow. DON’T BE SHY – WE HAVE THE CHANCE TO GET ANSWERS. Just remember they will not eat you!!!!

    DALLAS, July 20, 2021–(BUSINESS WIRE)–Texas Pacific Land Corporation (NYSE: TPL) (the “Company” or “TPL”) announced today that the Company will release second quarter 2021 financial results after the market closes on Thursday, August 5, 2021. A conference call will be held on Friday, August 6, 2021 at 8:30 a.m. Eastern Time.

    Webcast:
    A webcast of the conference call will be available on the Investors section of the Company’s website at http://www.texaspacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

    To Participate in the Telephone Conference Call:
    Dial in at least 15 minutes prior to start time:
    Domestic: 1-877-407-4018
    International: 1-201-689-8471

    Conference Call Playback:
    Domestic: 1-844-512-2921
    International: 1-412-317-6671
    Pass code: 13721185

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  5. Listening to the call right now. Very happy to hear Chris’s comments regarding debt and hedging. Looking at the hedges that VNOM and BSM currently have on make’s me sick.

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