Texas Pacific Land Trust ( (TPL) ) has released its Q4 earnings. Here is a breakdown of the information Texas Pacific Land Trust presented to its investors.
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Texas Pacific Land Corporation is one of the largest landowners in Texas, primarily focusing on surface and royalty ownership that supports energy production and extraction. The company announced its financial results for the fourth quarter and full year of 2024, highlighting a strong performance across its segments.
In the fourth quarter of 2024, Texas Pacific Land Corporation achieved a record in royalty production, acquiring mineral interests across 7,490 net royalty acres in the Midland Basin for $275.2 million. The company reported a consolidated net income of $118.4 million, with an adjusted EBITDA of $161.3 million and free cash flow of $123.7 million. Additionally, a quarterly cash dividend of $1.60 per share was paid.
For the full year 2024, the company marked a record in oil and gas royalty production, with the Water Service and Operations segment also achieving record performance. Total revenues for the year rose to $705.8 million, driven by increased water sales and produced water royalties. The company completed two significant acquisitions of mineral interests, adding approximately 11,600 net royalty acres. Total cash dividends paid amounted to $347.3 million, and the company repurchased $29.2 million of its common stock.
Despite a decrease in average realized prices for oil and gas, Texas Pacific Land Corporation managed to increase its production volumes and revenue streams. Operating expenses rose primarily due to increased water service-related costs and employee expenses, yet these were partially offset by a reduction in general and administrative expenses. The company continues to develop next-gen growth prospects, including a new sub-scale produced water desalination facility.
Looking ahead, Texas Pacific Land Corporation remains focused on leveraging its extensive land holdings to drive accretive growth. With ongoing developments and strategic investments, the company is well-positioned to capitalize on opportunities in the fragmented market for oil and gas royalties and related assets.
