Core Viewpoint - Tethys Petroleum Limited reported significant declines in financial performance for the year ended December 31, 2024, primarily due to lower oil and gas sales and production challenges [2][3]. Financial Performance - Oil and gas sales decreased by 58% to $15.2 million in 2024 from $36.5 million in 2023 [2]. - The net loss for 2024 was $19.1 million, compared to a profit of $9.7 million in 2023 [2]. - The results were negatively impacted by non-cash charges, including an impairment of Kul-Bas contract area costs and currency translation differences due to the depreciation of the Kazakhstan tenge against the US dollar [2]. Management Outlook - Management remains confident about Tethys's future despite production license approval delays and declining oil and gas prices [3]. - The company has little to no debt and possesses valuable operating assets, which positions it favorably for future development [3]. - Challenges in developing oil handling, gas utilization, and logistics are acknowledged, but management believes these can be addressed over time [3]. Company Overview - Tethys is focused on oil and gas exploration and production in Central Asia and the Caspian Region, with significant potential in both exploration and discovered deposits [4].

Company Overview - Texas Pacific Land Corporation (TPL) has seen a remarkable increase of 142.8% in stock price over the past year, significantly outperforming the S&P 500 and the energy sector [1] - TPL is one of the largest landowners in Texas, owning approximately 873,000 acres of land, which has gained substantial value due to advancements in drilling technology [4] Business Model - TPL operates a low-risk, capital-light business model, generating revenue from oil and gas royalties, water sales, easements, commercial leases, permits, and land sales, without engaging in drilling [5] - The company's profits have surged as the Permian Basin has become the largest onshore oil and gas production region in the U.S. [5] Water Business - TPL's water business has expanded significantly, achieving record sales in 2024, and operates one of the largest water production, storage, and delivery networks in the Permian [6] - In 2024, water sales and produced water royalties totaled $254.8 million, reflecting over a 30% year-over-year increase [7] Financial Performance - In 2024, TPL reported oil and gas royalties of $373.3 million, a 4.5% increase from 2023, while overall sales, operating income, and earnings have shown steady growth [7] - TPL's low operating expenses enable it to convert a large portion of revenue into net income, resulting in a high profitability level [12] Dividends - TPL began paying a regular quarterly dividend in 2021, which has grown to $1.62 per share, with additional special dividends based on performance [10] - In 2024, TPL paid a record $13.51 per share in dividends, yielding approximately 1% based on the stock price at that time [11] Valuation and Market Position - TPL's valuation has increased to 69 times trailing earnings, indicating a high price relative to earnings, which may deter some investors [12] - Despite the high valuation, TPL's business model remains strong, particularly with the growth of its water business [14]

Group 1 - Texas Pacific Land Corporation (NYSE: TPL) has experienced a significant stock price increase of over 125% in the past year, outperforming most of the market [1] - Recently, shares of Texas Pacific Land Corporation have stabilized, indicating that investors may be taking profits after the substantial rise [1] Group 2 - The article mentions Nikolaos Sismanis, an equities analyst with over five years of experience, who focuses on growth and income stocks with high expected returns and solid margins of safety [1] - Sismanis is a contributing author to the investing group Wheel of Fortune, which aims to provide actionable trading ideas and educational content for investors [1]

Core Insights - Texas Pacific Land Trust (NYSE: TPL) is experiencing benefits from seasonality tailwinds and is considered underfollowed for an S&P 500 stock [1] - The company is not classified correctly within the market, leading to potential mispricing [1] - Margins are currently depressed due to the development of the water business, indicating a temporary setback [1] Analyst Background - Bram de Haas, with 15 years of investing experience and over 5 years managing a Euro hedge fund, brings a unique perspective to investment analysis [1] - His background as a former professional poker player contributes to his risk management skills, which are utilized to identify lucrative investment opportunities based on special situations [1]

Group 1 - The article emphasizes the importance of identifying stocks that align with investment strategies and suggests making significant positions in such stocks [1] - The author has disclosed a beneficial long position in the shares of TPL and LB, indicating a personal investment interest [1] Group 2 - The article does not provide specific investment recommendations or advice, highlighting that past performance does not guarantee future results [2] - It clarifies that the views expressed may not reflect those of Seeking Alpha as a whole, and the analysts involved may not be licensed or certified [2]

Financial Data and Key Metrics Changes - In Q4 2024, Texas Pacific Land Corporation (TPL) achieved record free cash flow of approximately $461 million, an 11% year-over-year increase [24] - Full year 2024 oil and gas royalty production volumes increased by 14%, while water sales volumes rose by 31% and produced water royalty volumes increased by 37% [6][24] - Consolidated revenues for Q4 2024 were approximately $186 million, with adjusted EBITDA of $161 million and an adjusted EBITDA margin of 87% [25] Business Line Data and Key Metrics Changes - Royalty production for Q4 2024 was approximately 29,100 barrels of oil equivalent per day, representing an 11% increase year-over-year and a 3% increase sequentially [26] - Produced water royalty volumes grew 44% year-over-year to approximately 4 million barrels per day, benefiting from new volumes into out-of-basin pore space acquired in 2023 [26] - Sourced water sales volumes increased by 42% year-over-year to 737,000 barrels per day, with strong demand for treated water [26] Market Data and Key Metrics Changes - The Permian Basin saw a decline in rig counts from around 345 in early 2023 to approximately 290 by the end of 2024, yet production still managed to grow mid-single digits year-over-year [10][11] - New permits in the Permian Basin were up approximately 20% year-over-year, indicating a constructive outlook for 2025 [12] Company Strategy and Development Direction - TPL is focusing on next-generation opportunities, including data centers, power generation, and grid infrastructure, leveraging its hydrocarbon and non-hydrocarbon resources [15] - The company is committed to investing in produced water desalination technology and beneficial reuse initiatives, with a test facility expected to be completed mid-2025 [18][20] - TPL aims to consolidate Permian minerals, royalties, water, and surface assets, with a strong deal pipeline anticipated for 2025 [32][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate long-term value while returning substantial cash to shareholders, supported by a fortress balance sheet and high-margin business model [29][34] - The outlook for the Permian Basin remains positive, with expectations for robust well completions in 2025, contingent on oil prices and activity levels [62] Other Important Information - TPL returned a record $376 million to shareholders in 2024 through dividends and buybacks, with a regular dividend announced at $1.60 per share, a 37% year-over-year increase [7][30] - The company maintains a debt-free balance sheet with cash and cash equivalents of approximately $370 million at year-end [34] Q&A Session Summary Question: Can you elaborate on the potential desalination synergies with behind-the-meter power generation and data centers? - Management highlighted the transformational opportunity of combining power generation with desalination and water needs for data centers, emphasizing the synergies of waste heat capture and produced water availability [40] Question: Is the goal still 75% volume reclamation and analyte removal at a cost of $0.75 per barrel? - Management confirmed they are on track to achieve the 75% volume reduction and analyte removal, with confidence in reaching the $0.75 treatment cost through economies of scale [42][44] Question: Where are the greatest opportunities for consolidation between royalties and surface assets? - Management indicated a strong deal pipeline for 2025, with numerous high-quality opportunities available in both surface and mineral assets [46][47] Question: Could federal policy changes open up greater pore space in New Mexico? - Management noted that while changes are possible, they are not aware of any imminent regulatory changes that would significantly impact pore space availability [52][54] Question: What is the expected turn-in-line quarterly run rate for oil and gas royalties in 2025? - Management projected that approximately 14 to 15 net wells could come online during 2025, indicating a robust inventory and strong potential for production growth [62]

Texas Pacific Land Corporation (NYSE:TPL) Q4 2024 Earnings Conference Call February 20, 2025 8:30 AM ET Company Participants Shawn Amini - IR Tyler Glover - President, CEO & Trustee Chris Steddum - CFO Robert Crain - EVP, Texas Pacific Water Resources LLC Conference Call Participants Derrick Whitfield - Texas Capital Operator Greetings, and welcome to the Texas Pacific Land Corporation Fourth Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my p ...

In my previous Texas Pacific Land (NYSE: TPL ) article published in September 2023, I focused on the main issue the company had at the time, which was the governance of the company and theMy passion for financial markets started at a young age, and I have been investing since 2007.Later on, I studied Economics and started as a buy-side equity research analyst. After studying for a Master’s Degree in Economic Analysis and working as an accountant, I assumed the position of CFO for a holding company that oper ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ State or other jurisdiction of incorporation or organization: IRS Employer Identification No.: Delaware 75-0279735 Address of principal executive ...

Financial Performance - Consolidated net income for the fourth quarter of 2024 was $118.4 million, or $5.14 per share, compared to $106.6 million in the third quarter of 2024[9] - Total revenues for the fourth quarter of 2024 reached $185.8 million, an increase from $173.6 million in the third quarter of 2024, driven by a $7.5 million rise in easements and surface-related income[10] - For the full year 2024, total revenues were $705.8 million, a 11.7% increase from $631.6 million in 2023, with water sales contributing a $38.5 million increase[12] - The company achieved a record oil and gas royalty production of 26.8 thousand Boe per day for the full year 2024, compared to 23.5 thousand Boe per day in 2023[15] - Adjusted EBITDA for the full year 2024 was $610.7 million, reflecting strong operational performance[13] - Free cash flow for the full year 2024 was $461.1 million, with total cash dividends paid amounting to $347.3 million[13] - Operating income for the year ended December 31, 2024, was $539.138 million, an increase from $486.053 million in the previous year, representing a growth of 11%[32] - The company reported a diluted net income per share of $5.14 for the three months ended December 31, 2024, compared to $4.63 in the previous quarter, an increase of 11%[27] - The company’s total revenues for the year ended December 31, 2024, were $705.823 million, compared to $631.595 million in the previous year, indicating a growth of 11.7%[32] - Net income for Q4 2024 was $118,360,000, an increase from $106,594,000 in Q3 2024, and up from $405,645,000 in 2023[37] Revenue Breakdown - Oil and gas royalties contributed $96.954 million to total revenues for the three months ended December 31, 2024, up from $94.444 million in the previous quarter, a growth of 3%[27] - Water sales increased to $36.737 million for the three months ended December 31, 2024, compared to $36.211 million in the previous quarter, marking a growth of 1.4%[27] - The Water Service and Operations segment generated total revenues of $265.0 million in 2024, with water sales revenue of $150.7 million and produced water royalties revenue of $104.1 million[5] Production Metrics - Royalty production averaged 29.1 thousand barrels of oil equivalent (Boe) per day in the fourth quarter of 2024, up from 28.3 thousand Boe per day in the previous quarter[10] - Total depreciation, depletion, and amortization for Q4 2024 was $11,467,000, up from $5,762,000 in Q3 2024 and $14,757,000 in 2023[37] Cash Flow and Expenses - Free Cash Flow for Q4 2024 was $123,732,000, compared to $106,865,000 in Q3 2024 and $415,494,000 for the full year 2023[37] - Total operating expenses for the three months ended December 31, 2024, were $43.240 million, a decrease from $46.232 million in the previous quarter, reflecting a reduction of 6.4%[27] - Capital expenditures in Q4 2024 were $7,429,000, down from $9,833,000 in Q3 2024 and $15,431,000 in 2023[37] Shareholder Information - A three-for-one stock split was executed on March 26, 2024, enhancing shareholder value[5] - The weighted average number of diluted shares outstanding was 23,015,530 for the three months ended December 31, 2024, slightly down from 23,012,169 in the previous quarter[27] Other Financial Metrics - Income tax expense for Q4 2024 was $32,618,000, an increase from $28,823,000 in Q3 2024 and $111,916,000 in 2023[37] - Employee share-based compensation for Q4 2024 was $3,509,000, compared to $2,935,000 in Q3 2024 and $9,124,000 in 2023[37] - The company reported a pension curtailment and settlement gain of $(4,616,000) for the full year 2024[37] - Current income tax expense for Q4 2024 was $(30,177,000), compared to $(27,416,000) in Q3 2024 and $(110,517,000) in 2023[37] - EBITDA for Q4 2024 reached $162,445,000, compared to $141,179,000 in Q3 2024 and $532,318,000 for the full year 2023[37] - Adjusted EBITDA for Q4 2024 was $161,338,000, up from $144,114,000 in Q3 2024 and $541,442,000 in 2023[37]