Texas Pacific Land (TPL) Financial Report Summaries

Risks

• We are not an oil and gas producer. Our revenues from oil and gas royalties are subject to the actions of others.
• Our revenues from the sale of land are subject to substantial fluctuation. Land sales are subject to many factors that are beyond our control.
• Demand for TPWR’s products and services is substantially dependent on the levels of expenditures by our customers.
• Our business and financial results are subject to major trends in our industry, such as decarbonization, and may be adversely affected by future developments out of our control.
• Cyber incidents or attacks targeting systems and infrastructure used by the oil and gas industry may adversely impact our operations, and if we are unable to obtain and maintain adequate protection of our data, our business may be adversely impacted.
• The loss of key members of our management team or difficulty attracting and retaining experienced technical personnel could reduce our competitiveness and prospects for future success.
• Global health threats may adversely affect our business.
• The completion of the Corporate Reorganization may implicate conditions and covenants contained in certain agreements to which the Trust was a party and thereby may cause us to lose certain benefits that the Trust historically received. If the Company is unable to obtain consents to, or approval or waiver of, any such conditions or covenants, or is unable to obtain an acknowledgement that any such benefits shall continue for the benefit of TPL Corporation, we may not be entitled to all benefits and other rights under such agreements, which may have an adverse impact on the business and results of operations.
• The Corporate Reorganization may have adverse tax consequences.
• We cannot be certain that an active trading market for our Common Stock will be sustained, and our stock price may fluctuate significantly.
• There may be substantial changes in our stockholder base.
• We may not continue the Trust’s historical practice of declaring cash dividends. We will evaluate whether to pay cash dividends on our Common Stock in the future and we cannot guarantee the timing, amount or payment of dividends, if any.
• We may not continue the Trust’s historical practice of repurchasing outstanding equity of its holders. We will evaluate whether to repurchase our outstanding Common Stock in the future and we cannot guarantee the timing, amount or payment of share repurchases, if any.
• State law and anti-takeover provisions could enable our Board to resist a takeover attempt by a third party and limit the power of our stockholders.
• Our amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware or the U.S. District Court for the Northern District of Texas as the sole and exclusive forums for certain types of actions and proceedings that may be initiated by our stockholders, which could discourage lawsuits against the Company and our directors and officers.