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]

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]

Regulatory Update - Tethys received all ecological and environmental approvals for 2024 on November 18, 2024, and the 2025 ecological permit on December 9, 2024, allowing production of up to 490 tons/day under Contract No 1897 for the Kul Bas field until July 26, 2026 [2] - On January 8, 2025, Kul-Bas LLP submitted an application to transition Contract No 1897 to the Production Period, which would extend production until July 2048 and allow hydrocarbon exports, with a decision expected by February 5, 2025 [3] Operations Update - Oil production is constrained by limitations on associated gas flaring, prompting Tethys to convert gas to electricity to limit emissions [4] - The Central Processing Facility (CPF) at Kul Bas was commissioned on November 19, 2024, and the Gas Utilization Facilities (GUF) on January 17, 2025, marking the completion of Phase 1 work [4] - Phase 1 focused on handling associated gas from the first 3 wells (KBD-2, KBD-6, KBD-7), with plans for a Phase 2 program to increase oil production and bring on additional wells (KBD-3, KBD-4, KBD-8) [4] - Logistics, handled by oil buyers, can limit production due to factors like trucking, rail capacity, and weather conditions, with Tethys currently selling oil primarily to mini-refineries at higher prices [5] - A prohibition on naphtha exports in Kazakhstan has negatively impacted mini-refineries and reduced the price Tethys receives for oil compared to export prices [5] Company Strategy - Tethys remains committed to responsible growth, optimizing operations while meeting regulatory requirements [6] - The company focuses on oil and gas exploration and production in Central Asia and the Caspian Region [7]

Mr. Mavroudis is a professional portfolio manager specializing in institutional and private portfolios. He focuses on risk management, which is accompanied by in-depth financial market analysis (fundamental, macro and technical) to control the risk undertaken by the portfolios. He invests in all financial instruments globally (stocks, bonds, fx, commodities), restructuring investment portfolios based on prevailing conditions and the needs of each client-investor. Mr. Mavroudis has successfully navigated all ...

Core Insights - Texas Pacific Land Corporation (TPL) achieved record oil and gas royalty production of 28,300 barrels of oil equivalent per day in Q3 2024, marking a 13% sequential increase driven by activity in the Midland Basin and Northern Delaware regions [2] - TPL has outperformed other major stocks, with a year-to-date gain of 127.3%, making it the best Oil/Energy stock in the S&P 500 and the 7th best overall [5] - The company invested $500 million in acquisitions in 2024, adding 50,000 acres of surface rights and is expected to boost production by an additional 30,000 barrels of oil equivalent per day [12] Financial Performance - Despite strong performance, TPL faces challenges with declining realized commodity prices, with oil prices down 8% and natural gas prices down 65% year over year in Q3 2024 [8] - The company's high valuation, with a forward price/earnings ratio of 52.50, raises concerns about sustainability without extraordinary growth [8] - TPL's water-related operations saw a 46% year-over-year increase in produced water royalties, expected to generate $100 million in revenues in 2024 [16] Strategic Initiatives - TPL's asset-light model generates income through oil and gas royalties, water sales, and surface leases, contributing to its resilience and profitability [15] - The company is exploring non-energy revenue streams, although these initiatives are still in early development and contribute minimally to current earnings [8] - Strategic agreements in the water business require minimal capital expenditure, enhancing operational efficiency and long-term revenue stability [16] Market Outlook - Investors are questioning whether TPL can replicate its 2024 performance in 2025, as the stock's future returns will depend on navigating valuation pressures and commodity price volatility [10][19] - The company's diversified revenue mix and debt-free balance sheet position it well for future growth, but challenges remain in sustaining high returns [19]

Core Viewpoint - Texas Pacific Land Corporation (TPL) has experienced a significant stock price increase of over 200% year to date, attracting investor interest due to its unique business model and potential in the artificial intelligence (AI) sector [1][10]. Group 1: Business Model and Revenue Streams - TPL owns approximately 873,000 acres of land primarily in West Texas, leveraging this land to generate revenue through oil and gas royalties, water sales, land sales, easements, and material sales [2][4]. - The company's revenue is mainly derived from royalties paid by companies that lease TPL's land for drilling, benefiting from the strategic location within the Permian Basin, which provides access to high-quality reserves [3][5]. Group 2: Financial Performance - In Q3, TPL reported earnings per share (EPS) of $4.63, below the analyst estimate of $5.35, with revenue reaching $173.6 million, a slight increase from the previous quarter [5]. - TPL maintains a strong financial position with a trailing twelve-month return on equity (ROE) of 40.57% and a targeted cash balance of approximately $700 million, indicating low debt levels and strong financial flexibility [6][7]. Group 3: Growth Drivers and Market Position - The ongoing energy boom in the Permian Basin and increased drilling activity are primary growth drivers for TPL, leading to higher royalty payments [8]. - TPL's land is increasingly viewed as valuable for AI data centers, with contracts already secured for bitcoin mining and renewable energy projects, enhancing its market position [8][10]. Group 4: Stock Forecast and Analyst Ratings - The 12-month stock price forecast for TPL is $694.17, with a moderate buy rating based on two analyst ratings, indicating potential downside of 56.62% from current levels [6]. - Despite the positive outlook, there are concerns regarding the speculative nature of the stock price surge and the company's ability to capitalize on AI-related opportunities [9][10].

Grand Cayman, Cayman Islands--(Newsfile Corp. - November 26, 2024) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") today announced that it has filed its interim results for the three months ended September 30, 2024 with the Canadian securities regulatory authorities comprising its Audited Financial Statements together with Management's Discussion and Analysis and other required forms. Copies of the filed documents may be obtained via SEDAR at www.sedarplus.ca or on Tethys' website at www ...

KEY TAKEAWAYSTexas Pacific Land shares rose in intraday trading Friday, a day after S&P Dow Jones Indices said the real estate operating company will be replacing Marathon Oil in the S&P 500.TPL's shares, which hit an all-time high Thursday, are surging a further 6% Friday morning.Marathon Oil is being removed from the index as its acquisition by ConocoPhillips is set to close Friday. Texas Pacific Land (TPL) shares rose in intraday trading Friday, a day after S&P Dow Jones Indices said the real estate oper ...