01—Abstract
Summary
Summary of the 8-K filed February 19, 2025. Cited figures are marked; the original filing is the authoritative source.
Texas Pacific Land Corporation reported fourth quarter and full year 2024 results in a press release furnished as Exhibit 99.1.
For the full year 2024, total revenues were $705.8 milliona (versus $631.6 million in 2023) and net income was $454.0 million, or $19.72 per diluted share. Adjusted EBITDA was $610.7 million and free cash flow was $461.1 million. Fourth quarter 2024 net income was $118.4 million, or $5.14 per diluted share, on total revenues of $185.8 million.
Oil and gas royalty production reached a company record 29.1 thousand Boe per day in the fourth quarter, and full year production averaged 26.8 thousand Boe per day. The Water Service and Operations segment delivered record 2024 results, with total segment revenues of $265.0 millionb and segment net income of $139.1 million. Water sales revenue was $150.7 million and produced water royalties were $104.1 million.
Management highlighted $395.5 millionc spent on two mineral acquisitions and $45.0 million on a surface acquisition during 2024, and noted that construction has begun on a sub-scale produced water desalination test facility with an initial capacity of 10,000 barrels per day, with a mid-2025 completion targeted. The company also declared a quarterly cash dividend of $1.60 per share, payable March 17, 2025.
As of December 31, 2024, the company reported cash and cash equivalents of $369.8 milliond, and the investor presentation (Exhibit 99.2) states the company has no debt. The filing also furnishes an updated February 2025 investor presentation covering the business, its capital allocation framework, and non-GAAP reconciliations.
02—Key points
Key Highlights
- Full-year 2024 total revenues of $705.8 million, up from $631.6 million in 2023, with all revenue streams except land sales increasing
- Full-year 2024 net income of $454.0 million ($19.72 per diluted share) and Adjusted EBITDA of $610.7 million
- Full-year 2024 free cash flow of $461.1 million, versus $415.5 million in 2023 as reported in the filing's reconciliation
- Record Water Service and Operations segment results: $265.0 million segment revenue and $139.1 million segment net income in 2024
- Acquired mineral interests across 7,490 net royalty acres for $275.2 million in October 2024, part of $395.5 million in total mineral acquisitions during 2024
- Quarterly cash dividend of $1.60 per share declared February 18, 2025, payable March 17, 2025
- Cash and cash equivalents of $369.8 million at December 31, 2024, with no debt reported
03—Questions
Frequently Asked Questions
How did Texas Pacific Land perform financially in 2024?
Total revenues rose to $705.8 million from $631.6 million, and net income rose to $454.0 million from $405.6 million. Diluted earnings were $19.72 per share, and free cash flow reached $461.1 million for the year.
What drove revenue growth in 2024?
The filing attributes the growth mainly to a $38.5 million increase in water sales, driven by a 31.0% increase in water sales volumes. Produced water royalties rose $19.9 million and oil and gas royalty revenue rose $15.9 million, primarily on higher production volumes.
What acquisitions did the company complete in 2024?
The company completed two mineral interest acquisitions for a combined $395.5 million in August and October 2024, adding about 11,600 net royalty acres. It also bought 4,120 surface acres in the Midland Basin for $45.0 million in August 2024. All were all-cash transactions.
What is the company's dividend and capital return policy?
The Board declared a quarterly cash dividend of $1.60 per share on February 18, 2025, payable March 17, 2025 to holders of record on March 3, 2025. In 2024, the company paid $347.3 million in total cash dividends, including a $10.00 per share special dividend, and repurchased $29.2 million of common stock.
What is the status of the produced water desalination project?
Management said construction has begun on a sub-scale produced water desalination test facility with an initial capacity of 10,000 barrels per day, and the company remains on track for a mid-2025 completion.
04—Continue