Texas Pacific Land (TPL) - 2024 Q4 - Annual Results

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]