$790MM in current assets on the balance sheet. A new high.
As an aside — I wonder what the real return has been on the cash position since it started to build? Cumulative inflation is probably 20%+ since the drama started and buybacks effectively stopped. Not efficient.
I can only interpret the lack of material buybacks as an ongoing FU to shareholders.
The intangible assets line on the balance sheet is new.
Some relief on legal expenses (finally).
Land sales of $5.4MM of royalty interest acquisitions of $1.8MM
Last Quarter – For the six months ended June 30, 2023, we sold 43 acres of land in Texas for an aggregate sales price of $1.4 million. There were no significant land sales for the six months ended June 30, 2022.
This Quarter – For the nine months ended September 30, 2023, we sold 18,061 acres of land in Texas for an aggregate sales price of $6.8 million. For the nine months ended September 30, 2022, we sold 129 acres of land in Texas for an aggregate sales price of $3.3 million. There was no carrying value in the land associated with these sales.
Last Quarter – For the six months ended June 30, 2023, we acquired oil and gas royalty interests in 61 net royalty acres (normalized to 1/8th) for an aggregate purchase price of approximately $1.8 million. For the six months ended June 30, 2022, we acquired oil and gas royalty interests in 92 net royalty acres (normalized to 1/8th) for an aggregate purchase price of approximately $1.7 million.
This quarter – For the nine months ended September 30, 2023, we acquired oil and gas royalty interests in 119 net royalty acres (normalized to 1/8th) for an aggregate purchase price of approximately $3.6 million. For the nine months ended September 30, 2022, we acquired oil and gas royalty interests in 92 net royalty acres (normalized to 1/8th) for an aggregate purchase price of approximately $1.7 million.
How much of total water expenses should we ascribe to water royalties?
Produced water royalties. Produced water royalties are royalties received from the transfer or disposal of produced water on our land. Produced water royalties are contractual and not paid as a matter of right. We do not operate any salt water disposal wells. Produced water royalties were $61.8 million for the nine months ended September 30, 2023 compared to $52.7 million compared to the same period in 2022. This increase is principally due to increased produced water volumes for the nine months ended September 30, 2023 compared to the same period of 2022.
Net income. Net income for the Water Services and Operations segment was $74.7 million for the nine months ended September 30, 2023 compared to $61.2 million for the same period in 2022. Segment operating income increased $17.1 million for the nine months ended September 30, 2023 compared to the same period of 2022. The increase is principally due to the $28.9 million increase in segment revenues and was partially offset by the $11.5 million increase in water service-related expenses and the $3.8 million increase in income tax expense. Expenses are discussed further above under “Results of Operations — Consolidated.”
What did you see?
The Texas Pacific Land Trust Investor 
They’re waiting for the stock price to be much higher.
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I’m surprised that production is down based on royalty income.
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“Oil and gas royalty revenue decreased $43.2 million due to lower average commodity prices and lower production volumes in the third quarter of 2023 compared to the third quarter of 2022. The average realized price was $45.41 per barrel of oil equivalent (“Boe”) in the third quarter of 2023 versus $63.42 per Boe in the third quarter of 2022. The Company’s share of production was 21.8 thousand Boe per day for the third quarter of 2023 versus 23.4 thousand Boe per day for the same period of 2022”
How did the oil price average only $45.41 for the quarter? WTI well above that. Why was production 1.6 thousand Boe per day less than 2022?
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Not sure what months/weeks the Q3 covers exactly – I think it goes up to about six weeks before the earnings announcement – but the average WTI for July-Aug-Sept last year was $93.18 compared to $82.29 for this year. And June 2022 WTI was $114.84.
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See the charts. Oil price was $82.45 vs $94.03 last year. It’s Nat Gas and NGLs that are driving down the BOE.
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$790M in cash sitting there doing nothing is getting silly.
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buyback shares already……. all that excess cash…. that tiny yield on interest is upsetting
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Does anyone want to comment on the golden parachutes the three top executives gave themselves last month? See SEC filings for details.
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Those are obscene and must have been OKed by the Board. They are the subject of Article 2 and HK & SV are committed to voting in favor in the last agreement.
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