3Q21 Earnings

tpltblogger7 Comments

This is why we all own it.  Clean quarter that is demonstrative of the power of the assets.  All eyes on capital return / allocation policy from here…

Summary

10-Q

Call tomorrow 8:30 eastern, 7:30 central

Edit: Below is what I wrote to a contact after the call. What was your reaction?

“I think they took a well deserved victory lap on water. Margins are turning up and that business does need active management. Using bid/ask as an excuse for keeping $400MM in cash on the sheet seems like a stretch.”

7 thoughts on “3Q21 Earnings”

  1. I somehow can’t call it ‘clean’ with $8.5M in salaries and $2.8M in G&A for a company that is only collecting income from its land. Combined, they are over 9% of total revenues which are mostly derived from only collecting rent and royalties.
    The only major decision that the Board has to make is where to spend the ridiculous fees they want for serving.

    Liked by 1 person

  2. “Barry was never duly elected as a TPL trustee…Counterclaim Plaintiffs allege that they discovered, in a June 12, 2019 email from a NYSE representative, that many of the shares voted in favor of Barry in his 2017 trustee election were improperly cast via retailer brokers.

    Because of this error, Counterclaim Plaintiffs seek a declaratory judgment that the vote at Barry’s 2017 trustee election was invalid and that Barry was never duly elected as a TPL trustee.

    They also seek an injunction prohibiting Barry from taking on action on the TPL’s behalf until a new election can be held”

    https://cases.justia.com/federal/district-courts/texas/txndce/3:2019cv01224/317454/61/0.pdf?ts=1564229952

    Liked by 2 people

  4. yeah, good quarter and why we own it. Also why the two Barry’s and their minions are working so hard to help themselves to a nickels worth of every quarter too……….

    Liked by 1 person

    • Only was a good Q because oil and gas prices ripped and royalty production grew….none of which has anything to do with management. Meanwhile these guys spent the entire call trying to justify their existence and why they deserve to be paid millions per year. Laughable that they claim their active management with water has led to more activity on their lands. End of day activity is being driven by the permian/Delaware economics. If TPL didn’t put in the water infrastructure someone else would have. Meanwhile this active water business has resulted in nearly $50m growth in annual overhead. And 1st 9 months of the the year TPL did $45m of water sales offset by $10m of expenses. Then throw in the additional $35m+ of overhead first 9 months and it’s a big zero.

      What a joke

      Liked by 1 person

    • They need to monitor and enforce the rights. They said it on the call the produced water royalties is essentially passive biz and just involves them being able to enforce and track their rights. With growth all that means is you need to add more “land men ” and maybe some lawyers. Even if you add 25 employees at avg of $100k per (figure over 6 figures for lawyers and under that for land men ) thats just $2.5m total.

      Liked by 1 person

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