Texas Pacific Land (TPL) - 2024 Q2 - Quarterly Results

Financial Performance - Consolidated net income for Q2 2024 was $114.6 million, or $4.98 per share (diluted), with consolidated revenues of $172.3 million and adjusted EBITDA of $153.2 million[1] - Total revenues for the six months ended June 30, 2024 were $346.5 million, up from $307.0 million in the same period of 2023, driven by a 25.5% increase in water sales volumes[8] - Total revenues for the six months ended June 30, 2024, were $346.476 million, compared to $306.971 million in the same period of 2023, representing a 12.9% increase[21] - Net income for the six months ended June 30, 2024, was $229.006 million, up 22.5% from $186.961 million in the same period of 2023[21] - Adjusted EBITDA for the six months ended June 30, 2024, was $305.279 million, compared to $249.504 million in the same period of 2023[30] - Free Cash Flow for the six months ended June 30, 2024, was $230.454 million, up from $193.156 million in the same period of 2023[30] - Basic net income per share for the six months ended June 30, 2024, was $9.96, up from $8.10 in the same period of 2023[21] Water Segment Performance - Water segment achieved record performance with water sales revenue of $40.7 million and produced water royalties revenue of $25.3 million, totaling $68.3 million in segment revenues and $34.5 million in net income[1] - Water sales volumes increased by 16.5% in Q2 2024 compared to Q1 2024, contributing to a $3.5 million increase in water sales revenue[6] - Water sales revenue for the six months ended June 30, 2024, increased to $77.776 million (22% of total revenues) from $59.377 million (20%) in the same period of 2023[26] - Water services and operations net income for the six months ended June 30, 2024, was $67.906 million, accounting for 30% of total net income, up from $51.985 million (28%) in the same period of 2023[26] Royalty Production and Acreage - Royalty production remained steady at 24.9 thousand barrels of oil equivalent (Boe) per day, with an average realized price of $41.44 per Boe in Q2 2024[1][6] - As of June 30, 2024, the company's royalty acreage included 6.3 net well permits, 9.5 net drilled but uncompleted wells, 4.0 net completed wells, and 73.3 net producing wells[1] - Oil and gas royalties revenue for the six months ended June 30, 2024, was $181.933 million, accounting for 53% of total revenues, compared to $171.542 million (56%) in the same period of 2023[26] Share Repurchases and Dividends - The company announced a target cash balance of $700 million, with excess free cash flow to be deployed towards share repurchases and dividends, including a special cash dividend of $10.00 per share paid on July 15, 2024[1] - The company repurchased $6.3 million of common stock in Q2 2024 and $16.6 million in the first six months of 2024[1][3] Operating Expenses and Capital Expenditures - Total operating expenses for the six months ended June 30, 2024 were $77.2 million, down from $81.7 million in the same period of 2023, primarily due to lower legal and professional fees[9][10] - Capital expenditures for the six months ended June 30, 2024, were $12.161 million, compared to $5.144 million in the same period of 2023[30] Land and Resource Management - Land and resource management net income for the six months ended June 30, 2024, was $161.100 million, representing 70% of total net income, compared to $134.976 million (72%) in the same period of 2023[26] Innovation and Development - The company is developing a new energy-efficient method of produced water desalination and treatment, with a pilot facility progressing towards an initial capacity of 10,000 barrels per day[2]