Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-39804 | ||
Entity Registrant Name | Texas Pacific Land Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-0279735 | ||
Entity Address, Address Line One | 1700 Pacific Avenue | ||
Entity Address, Address Line Two | Suite 2900 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 | ||
City Area Code | (214) | ||
Local Phone Number | 969-5530 | ||
Title of 12(b) Security | Common Stock(par value $.01 per share) | ||
Trading Symbol | TPL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9 | ||
Entity Common Stock, Shares Outstanding | 7,745,375 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001811074 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 428,242 | $ 281,046 |
Accounts receivable and accrued receivables, net | 95,217 | 48,216 |
Prepaid expenses and other current assets | 3,054 | 1,290 |
Tax like-kind exchange escrow | 0 | 1,978 |
Total current assets | 526,513 | 332,530 |
Property, plant and equipment, net | 79,722 | 79,267 |
Real estate acquired | 109,071 | 108,536 |
Royalty interests acquired, net | 44,390 | 45,646 |
Operating lease right-of-use assets | 1,826 | 2,473 |
Other assets | 2,542 | 3,183 |
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned: | ||
Total assets | 764,064 | 571,635 |
LIABILITIES AND EQUITY | ||
Accounts payable and accrued expenses | 18,008 | 13,325 |
Income taxes payable | 29,083 | 4,054 |
Unearned revenue | 3,809 | 3,997 |
Total current liabilities | 50,900 | 21,376 |
Deferred taxes payable | 38,948 | 38,728 |
Unearned revenue - noncurrent | 20,449 | 22,171 |
Operating lease liabilities | 1,445 | 2,026 |
Accrued liabilities | 611 | 2,150 |
Total liabilities | 112,353 | 86,451 |
Commitments and contingencies | 0 | 0 |
Equity: | ||
Preferred stock and Certificates of Proprietary Interest | 0 | 0 |
Common stock and Sub-share Certificates in Certificates of Proprietary Interest | 78 | 0 |
Treasury stock, at cost; 11,461 and no shares as of December 31, 2021 and 2020, respectively | (15,417) | 0 |
Additional paid-in capital | 28 | 0 |
Accumulated other comprehensive income (loss) | (1,007) | (2,693) |
Retained earnings and net proceeds from all sources | 668,029 | 487,877 |
Total equity | 651,711 | 485,184 |
Total liabilities and equity | 764,064 | 571,635 |
Land (surface rights) | ||
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned: | ||
Land (surface rights) | 0 | 0 |
1/16th nonparticipating perpetual royalty interest | ||
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned: | ||
1/16th nonparticipating perpetual royalty interest | 0 | 0 |
1/128th nonparticipating perpetual royalty interest | ||
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned: | ||
1/128th nonparticipating perpetual royalty interest | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Preferred stock and certificates of proprietary interest, par value (in dollars per share) | $ 0.01 | $ 100 |
Preferred stock authorized (in shares) | 1,000,000 | |
Preferred stock and certificates of proprietary interest, outstanding (in shares) | 0 | 0 |
Common stock and sub-share certificates of proprietary interest, par value (in dollars per share) | $ 0.01 | |
Common stock authorized (in shares) | 7,756,156 | |
Common stock and sub-share certificates of proprietary interest, outstanding (in shares) | 7,744,695 | |
Treasury stock (in shares) | 11,461 | 0 |
Sub-share Certificates in Certificates of Proprietary Interest | ||
Common stock and sub-share certificates of proprietary interest, par value (in dollars per share) | $ 0.0333 | |
Common stock and sub-share certificates of proprietary interest, outstanding (in shares) | 7,756,156 | |
1/16th nonparticipating perpetual royalty interest | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 6.25% | 6.25% |
1/128th nonparticipating perpetual royalty interest | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 0.78125% | 0.78125% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total revenues | $ 450,958 | $ 302,564 | $ 490,496 |
Expenses: | |||
Salaries and related employee expenses | 40,012 | 32,173 | 35,041 |
Water service-related expenses | 13,233 | 14,233 | 20,808 |
General and administrative expenses | 11,782 | 9,751 | 9,540 |
Legal and professional fees | 7,281 | 10,778 | 16,403 |
Land sales expenses | 0 | 3,973 | 225 |
Depreciation, depletion and amortization | 16,257 | 14,395 | 8,906 |
Total operating expenses | 88,565 | 85,303 | 90,923 |
Operating income | 362,393 | 217,261 | 399,573 |
Other income, net | 624 | 2,401 | 2,682 |
Income before income taxes | 363,017 | 219,662 | 402,255 |
Income tax expense (benefit): | |||
Current | 93,265 | 46,002 | 57,492 |
Deferred | (228) | (2,389) | 26,035 |
Total income tax expense | 93,037 | 43,613 | 83,527 |
Net income | 269,980 | 176,049 | 318,728 |
Amortization of net actuarial costs, net of income taxes of $30, $14, and $10 for the years ended December 31, 2021, 2020 and 2019, respectively | 114 | 53 | 36 |
Net actuarial gain (loss) on pension plan, net of income taxes of $418, $(342), and $(111) as of December 31, 2021, 2020 and 2019, respectively | 1,572 | (1,285) | (419) |
Total other comprehensive income (loss) | 1,686 | (1,232) | (383) |
Total comprehensive income | $ 271,666 | $ 174,817 | $ 318,345 |
Net income per share of common stock/Sub-share Certificate | |||
Net income per sub-share certificate - basic (in dollars per share) | $ 34.83 | $ 22.70 | $ 41.09 |
Net income per sub-share certificate - diluted (in dollars per share) | $ 34.83 | $ 22.70 | $ 41.09 |
Weighted average number of shares of common stock/Sub-share Certificates outstanding | |||
Weighted average number of Sub-share Certificates outstanding - basic (in shares) | 7,752,027 | 7,756,156 | 7,756,437 |
Weighted average number of Sub-share Certificates outstanding - diluted (in shares) | 7,752,054 | 7,756,156 | 7,756,437 |
Oil and gas royalties | |||
Revenues: | |||
Total revenues | $ 286,468 | $ 137,948 | $ 154,729 |
Water sales | |||
Revenues: | |||
Total revenues | 67,766 | 54,862 | 84,949 |
Produced water royalties | |||
Revenues: | |||
Total revenues | 58,081 | 50,640 | 39,119 |
Easements and other surface-related income | |||
Revenues: | |||
Total revenues | 37,616 | 41,398 | 76,243 |
Land sales and other operating revenue | |||
Revenues: | |||
Total revenues | $ 1,027 | $ 17,716 | $ 135,456 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Amortization of net actuarial costs and prior service costs, income taxes | $ (30) | $ (14) | $ (10) |
Net actuarial (loss) gain on pension plan, income taxes | $ 418 | $ (342) | $ (111) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Cumulative effect of accounting changes | Sub-share Certificates | Common Stock | Additional Paid-in Capital | Treasury Stock | Accum. Other Comp. Inc/(Loss) | Retained Earnings | Net Proceeds From All Sources | Net Proceeds From All SourcesCumulative effect of accounting changes |
Balances (in shares) at Dec. 31, 2018 | 7,762,414 | 0 | 0 | |||||||
Balances at Dec. 31, 2018 | $ 244,691 | $ 0 | $ 0 | $ 0 | $ (1,078) | $ 0 | $ 245,769 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 318,728 | 318,728 | ||||||||
Periodic pension costs, net of income taxes | (383) | (383) | ||||||||
Repurchase and retirement of common stock and Sub-share Certificates in Certificates of Proprietary Interest (in shares) | (6,258) | |||||||||
Repurchase and retirement of Sub-share Certificates of Proprietary Interest | (4,353) | (4,353) | ||||||||
Regular dividends paid | (13,576) | (13,576) | ||||||||
Special dividends paid | (32,970) | (32,970) | ||||||||
Balances (in shares) at Dec. 31, 2019 | 7,756,156 | 0 | 0 | |||||||
Balances at Dec. 31, 2019 | 512,137 | $ (110) | $ 0 | 0 | $ 0 | (1,461) | 0 | 513,598 | $ (110) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 176,049 | 176,049 | ||||||||
Periodic pension costs, net of income taxes | (1,232) | (1,232) | ||||||||
Regular dividends paid | (77,561) | (77,561) | ||||||||
Special dividends paid | (124,099) | (124,099) | ||||||||
Balances (in shares) at Dec. 31, 2020 | 7,756,156 | 0 | 0 | |||||||
Balances at Dec. 31, 2020 | 485,184 | $ 0 | 0 | $ 0 | (2,693) | 0 | 487,877 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 269,980 | 269,980 | ||||||||
Periodic pension costs, net of income taxes | 1,686 | 1,686 | ||||||||
Repurchase and retirement of common stock and Sub-share Certificates in Certificates of Proprietary Interest (in shares) | (14,791) | (14,791) | ||||||||
Repurchase and retirement of Sub-share Certificates of Proprietary Interest | (19,903) | $ (19,903) | ||||||||
Regular dividends paid | (85,264) | (85,264) | ||||||||
Conversion of Sub-shares into shares of common stock (in shares) | (7,756,156) | 7,756,156 | ||||||||
Conversion of Sub-shares into shares of common stock | 0 | $ 78 | 487,799 | (487,877) | ||||||
Share-based compensation | 28 | 28 | $ 4,486 | (4,486) | ||||||
Share-based compensation (in shares) | 3,330 | (3,330) | ||||||||
Balances (in shares) at Dec. 31, 2021 | 0 | 7,744,695 | 11,461 | |||||||
Balances at Dec. 31, 2021 | $ 651,711 | $ 78 | $ 28 | $ (15,417) | $ (1,007) | $ 668,029 | $ 0 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Other comprehensive income (loss), defined benefit plan, transition asset (obligation), reclassification adjustment from AOCI, tax | $ 448 | $ (328) | $ (101) |
Dividend paid per sub-share (in USD per share) | $ 11 | $ 10 | $ 1.75 |
Special dividends paid per sub-share certificate (in dollars per share) | $ 16 | $ 4.25 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 269,980 | $ 176,049 | $ 318,728 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred taxes | 220 | (2,099) | 25,924 |
Depreciation, depletion and amortization | 16,257 | 14,395 | 8,906 |
Share-based compensation | 28 | 0 | 0 |
Land sales revenue recognized on land exchange | 0 | (1,415) | (22,000) |
Changes in operating assets and liabilities: | |||
Receivables and other assets | (47,603) | 18,828 | (13,802) |
Income taxes payable | 25,029 | (1,217) | 3,664 |
Prepaid income taxes | 0 | 0 | 9,398 |
Unearned revenue | (1,910) | 8,787 | 4,012 |
Operating liabilities, excluding income taxes | 3,162 | (6,291) | 7,960 |
Cash provided by operating activities | 265,163 | 207,037 | 342,790 |
Cash flows from investing activities: | |||
Proceeds from sales of fixed assets | 1,086 | 0 | 117 |
Acquisition of real estate | (535) | (3,966) | (74,583) |
Acquisition of royalty interests | 0 | (16,946) | (5,017) |
Purchase of fixed assets | (15,548) | (5,086) | (32,209) |
Cash used in investing activities | (14,997) | (25,998) | (111,692) |
Cash flows from financing activities: | |||
Dividends paid | (85,264) | (201,660) | (46,546) |
Cash used in financing activities | (104,948) | (201,660) | (50,899) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 145,218 | (20,621) | 180,199 |
Cash, cash equivalents and restricted cash, beginning of period | 283,024 | 303,645 | 123,446 |
Cash, cash equivalents and restricted cash, end of period | 428,242 | 283,024 | 303,645 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 68,223 | 46,619 | 44,439 |
Supplemental non-cash investing and financing information: | |||
Fixed asset additions in accounts payable | 867 | 0 | 0 |
Share repurchases not yet settled | 219 | 0 | 0 |
Issuance of common stock | 78 | 0 | 0 |
Land exchange | 0 | 1,415 | 22,000 |
Operating lease right-of-use assets | 0 | 0 | 3,712 |
Common Stock | |||
Cash flows from financing activities: | |||
Repurchases of common stock and Sub-share Certificates in Certificates of Proprietary Interest | (19,684) | 0 | 0 |
Sub-share Certificates | |||
Cash flows from financing activities: | |||
Repurchases of common stock and Sub-share Certificates in Certificates of Proprietary Interest | $ 0 | $ 0 | $ (4,353) |
Organization and Description of
Organization and Description of Business Segments | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business Segments | Organization and Description of Business Segments Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as “TPL”, the “Company”, “our”, “we” or “us”) is a Delaware corporation and one of the largest landowners in the State of Texas with approximately 880,000 surface acres of land in West Texas, with the majority of our ownership concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and gas royalty interest (“NPRI”) under approximately 85,000 acres of land, a 1/16th NPRI under approximately 371,000 acres of land, and approximately 4,000 additional net royalty acres (normalized to 1/8th) in the western part of Texas. TPL’s income is derived primarily from oil, gas and produced water royalties, sales of water and land, easements and commercial leases of the land. On January 11, 2021, we completed our reorganization from a business trust, organized under a Declaration of Trust dated February 1, 1888 (the “Declaration of Trust”), to a corporation (the “Corporate Reorganization”) and changed our name from Texas Pacific Land Trust (the “Trust”) to Texas Pacific Land Corporation. See further discussion of the Corporate Reorganization and its impact on our equity structure in Note 11, “Equity.” Any references in these consolidated financial statements and notes to the Company, TPL, our, we, or us with respect to periods prior to January 11, 2021 are in reference to the Trust, and references to periods on that date and thereafter are in reference to Texas Pacific Land Corporation or TPL Corporation. We operate our business in two segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of strategies and objectives of TPL and provide a framework for timely and rational allocation of resources within businesses. See Note 12, “Business Segment Reporting” for further information regarding our segments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include our consolidated accounts and the accounts of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. Change in Accounting Estimate Management evaluates its estimates on a routine basis. Effective July 1, 2019, TPL revised the estimated useful lives of certain water service-related assets after its disaggregation of water service-related projects into sub classifications. TPL purchased these water service-related assets from July 1, 2017 through June 30, 2019. Based on information gained from operations over this time period, management believes that these water service-related assets will benefit periods ranging from three The net book value of these water service-related assets at June 30, 2019, was not modified and is depreciated over the revised estimated useful lives of these assets. The effect of the change in estimated useful lives resulted in an additional $2.4 million of depreciation expense for the year ended December 31, 2019. Revenue Recognition Oil and Gas Royalties Oil and gas royalties are received in connection with royalty interests owned by TPL. Oil and gas royalties are reported net of production taxes and are recognized as revenue when crude oil and gas products are removed from the respective mineral reserve locations. Oil and gas royalty payments are generally received one The oil and gas royalties which we receive are dependent upon the market prices for oil and gas, and locational and contractual price differences. The market prices for oil and gas are subject to national and international economic and political conditions and subject to significant price fluctuations. TPL has analyzed public reports of drilling activities by the oil companies operating where we have an oil and gas royalty interest in an effort to identify unpaid royalties associated with royalty interests we own. Rights to certain oil and gas royalties we believe to be due and payable may be subject to dispute with the oil company involved as a result of disagreements with respect to drilling and related engineering information. Disputed oil and gas royalties are recorded when these contingencies are resolved. Easements and Other Surface-Related Income Easement contracts represent contracts which permit companies to install pipelines, electric lines and other equipment on land owned by TPL. When TPL receives a signed contract and payment, we make available the respective parcel of land to the grantee. Easement income is recognized upon the execution of the easement agreement, or in the event of a renewal upon receipt of the renewal payment, as at that point in time, we have satisfied our performance obligation and the customer has right of use. Leases of our surface acreage include, but are not limited to, facility, roadway and surface leases with a typical lease term of ten years and generally require fixed annual payments. Lease cancellations are allowed under certain circumstances, but initial lease deposits are generally nonrefundable. The initial lease deposits and annual payments are recorded as unearned revenue upon receipt and amortized over the life of the lease. Advance lease payments are deferred and amortized over the appropriate accounting period. Other surface-related income also includes revenue from permits and material sales. Revenue from permits is recognized upon execution of the contract and receipt of payment. Revenue from material sales is recognized upon the removal of materials by the customer. Water Sales Water sales revenue encompasses sales of water to operators and other customers and royalties received pursuant to legacy agreements with operators. The earnings cycle for both revenue streams is complete upon delivery of water. Water sales and royalty revenue is recognized as earned. Produced Water Royalties Produced water royalties represents revenue from the transportation and disposal of saltwater from producing oil and gas wells on our land. Revenue is recognized when the water is transported across or injected into our land. Land Sales and Exchanges We consider purchasers of land to be our customers as land management, leasing and sales are normal operating activities for TPL. Revenue is recognized on land sales when the performance obligation to the purchaser (customer) is complete. Revenue from land exchanges is recognized based upon the estimated fair value of the consideration exchanged. Cash, Cash Equivalents and Restricted Cash We consider investments in bank deposits, money market funds, and highly-liquid cash investments with original maturities of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands): December 31, 2021 December 31, 2020 Cash and cash equivalents $ 428,242 $ 281,046 Tax like-kind exchange escrow — 1,978 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 428,242 $ 283,024 Receivables Receivables consist primarily of trade accounts receivable related to water and material sales and royalty income due related to our oil, gas and produced water royalties. An allowance is recorded for expected credit losses and is based upon our historical write-off experience, aging of trade accounts receivable and collectibility patterns of our customers. As of December 31, 2021 and 2020, the allowance for expected credit loss was approximately $0.1 million. Accrual of Oil and Gas Royalties The Company accrues oil and gas royalties, which are included in accounts receivable and accrued receivables, net. An accrual is necessary due to the time lag between the production of oil and gas and generation of the actual payment by operators. The oil and gas royalty accrual is based upon historical production volumes, estimates of the timing of future payments and recent market prices for oil and gas. Accrued oil and gas royalties included in accounts receivable and accrued receivables, net totaled $49.9 million and $20.7 million as of December 31, 2021 and 2020, respectively. Property, Plant and Equipment Property, plant and equipment is carried at cost less accumulated depreciation. Maintenance and repair costs are expensed as incurred. Costs associated with our development of infrastructure for sourcing and treating water are capitalized. We account for depreciation of property, plant and equipment on the straight-line method over the estimated useful lives of the assets. Depreciable lives by category are as follows: Range of Estimated Useful Lives (in years) Water wells and other water-related assets 3 to 30 Furniture, fixtures and equipment 3 to 15 Real Estate Acquired Real estate acquired is recorded at cost and carried at the lower of cost or market. Valuations are periodically performed or obtained by management whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments, if any, are recorded by a charge to net income and a valuation allowance if the carrying value of the property exceeds its estimated fair value. Minimal real estate improvements are made to land. No impairments were recorded for the years ended December 31, 2021, 2020 and 2019. Royalty Interests Acquired We follow the successful efforts method of accounting for our royalty interests acquired, which are carried at the lower of cost or market. Valuations are periodically performed or obtained by management whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments, if any, are recorded by a charge to net income and a reduction in the carrying value of our royalty interests if the carrying value exceeds the estimated fair value. No impairments were recorded for the years ended December 31, 2021, 2020 and 2019. Depletion is recorded based upon a units of production basis. Depletion expense was approximately $1.3 million, $0.4 million and $0.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Real Estate and Royalty Interests Assigned Through the 1888 Declaration of Trust The fair market value of the Trust’s land and royalty interests that were assigned through the 1888 Declaration of Trust, (referred to as “Assigned”) land and royalty interests, was not determined in 1888 when the Trust was formed; therefore, no value is assigned in the accompanying consolidated balance sheets to the Assigned land and royalty interests. Consequently, in the consolidated statements of income and total comprehensive income, no allowance is made for depletion and no cost is deducted from the proceeds of sales of the Assigned land and royalty interests. Even though the 1888 value of real properties cannot be precisely determined, it has been concluded that the effect of this matter can no longer be significant to our financial position or results of operations. Minimal real estate improvements are made to land. Leases We lease certain facilities under operating leases. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include our administrative offices located in Dallas and Midland, Texas, as well as some modular buildings in our West Texas yards. Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. Short-term leases with an initial term of 12 months or less are not recognized in the right-to-use asset and lease liability on the consolidated balance sheets. The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee. For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payments for items such as common area maintenance and parking. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. See Note 10, “Commitments” for additional information. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The liability for unrecognized tax benefits is zero as of December 31, 2021 and 2020. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of income and total comprehensive income. Share-based Compensation For share-based compensation awards, the Company recognizes compensation expense in the financial statements over the awards’ vesting periods using the graded-vesting method for its awards with service conditions only. The Company utilizes the closing stock price on the date of grant to determine the fair value of service-vesting restricted stock awards. Unvested restricted stock awards are entitled to dividends which are accrued and distributed to award recipients at the time such awards vest. Forfeitures are recognized in the period in which they occur. Share-based compensation is included as a component of salaries and related employee expenses on the consolidated statements of income and total comprehensive income. Net Income Per Share Basic income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is computed based upon the weighted average number of shares outstanding during the period plus unvested shares issued pursuant to our equity and deferred compensation plans. See Note 9, “Net Income Per Share.” Prior to the Corporate Reorganization, shares outstanding were sub-share certificates (“Sub-shares”), par value of $0.03-1/3, and thereafter, shares outstanding are common stock, par value $0.01 per share (the “Common Stock”). Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired Common Stock is recorded as treasury stock. The cost associated with issuance of treasury stock is based on the average cost of treasury stock as of the date of issuance. Purchases and Retirements of Sub-shares Prior to the Corporate Reorganization, the costs of Sub-shares purchased and retired were charged to net proceeds from all sources. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other gains and losses affecting capital that, under GAAP, are excluded from net income. Concentrations of Credit Risk We invest our cash and cash equivalents (which include U.S. Treasury bills and commercial paper with maturities of three months or less) among three major financial institutions in an attempt to minimize exposure to risk from any one of these entities. As of December 31, 2021 and 2020, we had cash and cash equivalents deposited in our financial institutions in excess of federally-insured levels. We regularly monitor the financial condition of these financial institutions and believe that we are not exposed to any significant credit risk in cash and cash equivalents. Significant Customers Three customers represented, in the aggregate, 41.0% of TPL’s total revenues for the year ended December 31, 2021. Two customers represented, in the aggregate, 28.3% and 36.5% of TPL’s total revenues for the years ended December 31, 2020, and 2019, respectively. Reclassifications Certain financial information on the consolidated statements of income and total comprehensive income for the years ended December 31, 2020 and 2019 have been revised to conform to the current year presentation. These revisions include a reclassification of $50.6 million and $39.1 million of produced water royalties revenue for the years ended December 31, 2020 and 2019, respectively, previously included in easements and other surface-related income to a separate financial statement line item within revenues. Recently Adopted Accounting Guidance In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “ Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes.” The ASU simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The Company adopted the guidance effective January 1, 2021. The adoption had minimal impact on the Company’s consolidated financial statements and disclosures. Recently Issued Accounting Pronouncements In July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842) Lessors – Certain Leases with Variable Lease Payments .” Under the ASU, a lessor would classify a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if the lease would have been classified as a sales-type lease or direct financing lease under ASC 842 classification criteria and the lessor would have otherwise recognized a day one loss. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance effective January 1, 2022, had no impact on our consolidated financial statements and disclosures. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net consisted of the following as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Property, plant and equipment, at cost: Water service-related assets (1) $ 108,732 $ 97,699 Furniture, fixtures and equipment 9,071 6,125 Other 598 598 Total property, plant and equipment, at cost 118,401 104,422 Less: accumulated depreciation (38,679) (25,155) Property, plant and equipment, net $ 79,722 $ 79,267 (1) Water service-related assets reflect assets related to water sourcing and water treatment projects. Depreciation expense was $14.8 million, $13.8 million and $8.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Real Estate Activity
Real Estate Activity | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Real Estate Activity | Real Estate Activity As of December 31, 2021 and 2020, TPL owned the following land and real estate (in thousands, except number of acres): December 31, December 31, 2021 2020 Number of Acres Net Book Value Number of Acres Net Book Value Land (surface rights) (1) 823,452 $ — 823,482 $ — Real estate acquired 57,129 109,071 57,041 108,536 Total real estate situated in Texas 880,581 $ 109,071 880,523 $ 108,536 (1) Real estate assigned through the 1888 Declaration of Trust. The Assigned land held by TPL was recorded with no value at the time of acquisition. See Note 2, “Summary of Significant Accounting Policies — Real Estate and Royalty Interests Assigned Through the 1888 Declaration of Trust” for further information regarding the Assigned land. Real estate acquired includes land parcels which have either been acquired through foreclosure or transactions with third parties. Land Sales For the year ended December 31, 2021, we sold 30 acres of land in Texas for an aggregate sales price of $0.7 million, an average of approximately $25,000 per acre. For the year ended December 31, 2020, we sold 22,160 acres of land in Texas for an aggregate sales price of approximately $16.0 million, an average of approximately $721 per acre. Additionally, we recognized land sales revenue of $1.4 million for the year ended December 31, 2020 related to land exchanges where we had no cost basis in the land conveyed. For the year ended December 31, 2019, we sold 21,986 acres of land in Texas for an aggregate sales price of approximately $113.0 million, an average of approximately $5,141 per acre. Additionally, we conveyed 5,620 acres of land in exchange for 5,545 acres of land. As we had no cost basis in the land conveyed, we recognized land sales revenue of $22.0 million related to this land exchange for the year ended December 31, 2019. Land Acquisitions For the year ended December 31, 2021, we acquired 88 acres of land in Texas for an aggregate purchase price of $0.5 million, an average of approximately $6,086 per acre. For the year ended December 31, 2020, we acquired 756 acres of land in Texas for an aggregate purchase price of approximately $3.9 million, an average of approximately $5,134 per acre (excludes land acquired through the land exchange as discussed above). For the year ended December 31, 2019, we acquired 21,671 acres of land in Texas for an aggregate purchase price of approximately $74.4 million, an average of approximately $3,434 per acre (excludes land acquired through the land exchange as discussed above). |
Oil and Gas Royalty Interests
Oil and Gas Royalty Interests | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Oil and Gas Royalty Interests | Oil and Gas Royalty Interests As of December 31, 2021 and 2020, we owned the following oil and gas royalty interests (in thousands, except number of acres): Net Book Value December 31, 2021 December 31, 2020 1/16th nonparticipating perpetual royalty interests (1) $ — $ — 1/128th nonparticipating perpetual royalty interests (2) — — Royalty interests acquired (3) 46,266 46,266 Total royalty interests, gross $ 46,266 $ 46,266 Less: accumulated depletion (1,876) (620) Total royalty interests, net $ 44,390 $ 45,646 (1) Nonparticipating perpetual royalty interests in 370,737 gross royalty acres as of December 31, 2021 and 2020. (2) Nonparticipating perpetual royalty interests in 84,934 gross royalty acres as of December 31, 2021 and 2020. (3) Royalty interest in 4,090 net royalty acres as of December 31, 2021 and 2020. Royalty Interests Assigned Through the 1888 Declaration of Trust The fair market value of the Trust’s Assigned royalty interests was not determined in 1888 when the Trust was formed, and accordingly, these Assigned royalty interests were recorded with no value. See Note 2, “Summary of Significant Accounting Policies — Real Estate and Royalty Interests Assigned Through the 1888 Declaration of Trust” for further information regarding the Assigned royalty interests. The Assigned royalty interests include 1/16th and 1/128th royalty interests. Royalty Interests Transactions There were no oil and gas royalty interest transactions for the year ended December 31, 2021. For the year ended December 31, 2020, we acquired oil and gas royalty interests in 1,017 net royalty acres (normalized to 1/8th) for an aggregate purchase price of $16.9 million, an average price of approximately $16,668 per net royalty acre. For the year ended December 31, 2019, we acquired oil and gas royalty interests in 1,247 net royalty acres (normalized to 1/8th) for an aggregate purchase price of $4.7 million, an average price of approximately $3,800 per net royalty acre. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits TPL has a defined contribution plan available to all eligible employees. Qualifying participants may receive a matching contribution based on the amount participants contribute to the plan up to 6% of their qualifying compensation. TPL contributed approximately $0.6 million, $0.5 million and $0.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. TPL has a noncontributory pension plan (the “Pension Plan”) available to all eligible employees who have completed one year of continuous service with TPL during which they completed at least 1,000 hours of service. The Pension Plan provides for a normal retirement benefit at age 65. Contributions to the Pension Plan reflect benefits accrued with respect to participants’ services to date, as well as the amount actuarially determined to pay lifetime benefits to participants and their beneficiaries upon retirement. The following table sets forth the Pension Plan’s changes in benefit obligation, changes in fair value of assets, and funded status as of December 31, 2021 and 2020 using a measurement date of December 31 (in thousands): December 31, 2021 December 31, 2020 Change in projected benefits obligation: Projected benefit obligation at beginning of year $ 9,717 $ 6,577 Service cost 3,225 1,835 Interest cost 264 210 Actuarial loss (1,637) 1,333 Benefits paid (245) (238) Projected benefit obligation at end of year $ 11,324 $ 9,717 Change in Pension Plan assets: Fair value of Pension Plan assets at beginning of year $ 7,567 $ 6,615 Actual return on Pension Plan assets 874 161 Contributions by employer 2,517 1,029 Benefits paid (245) (238) Fair value of Pension Plan assets at end of year 10,713 7,567 Funded (unfunded) status at end of year $ (611) $ (2,150) The projected Pension Plan benefit obligation as of December 31, 2021 was impacted by changes in assumptions used as of that date compared to assumptions used as of December 31, 2020. These changes included an increase in the discount rate from 2.75% as of December 31, 2020 to 3.0% as of December 31, 2021 and a change in the mortality improvement scale from the MP-2020 Table to the MP-2021 Table. The effect of the assumption changes was an decrease in the projected benefit obligation of approximately $0.7 million. Amounts recognized in the balance sheets as of December 31, 2021 and 2020 consist of (in thousands): December 31, 2021 December 31, 2020 Assets $ — $ — Liabilities 611 2,150 $ 611 $ 2,150 Amounts recognized in accumulated other comprehensive loss consist of the following as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Net actuarial loss $ (1,275) $ (3,409) Amounts recognized in accumulated other comprehensive loss, before taxes (1,275) (3,409) Income tax benefit 268 716 Amounts recognized in accumulated other comprehensive loss, after taxes $ (1,007) $ (2,693) Net periodic benefit cost for the years ended December 31, 2021, 2020 and 2019 include the following components (in thousands): Years Ended December 31, 2021 2020 2019 Components of net periodic benefit cost: Service cost $ 3,225 $ 1,835 $ 666 Interest cost 264 210 197 Expected return on Pension Plan assets (521) (454) (364) Amortization of net loss 144 66 46 Net periodic benefit cost $ 3,112 $ 1,657 $ 545 Service cost, a component of net periodic benefit cost, is reflected in our consolidated statements of income and total comprehensive income within salaries and related employee expenses. The other components of net periodic benefit cost are included in other income, net on the consolidated statements of income and total comprehensive income. Other changes in Pension Plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2021, 2020 and 2019 (in thousands): Years Ended December 31, 2021 2020 2019 Net actuarial (gain) loss $ (1,990) $ 1,626 $ 530 Recognized actuarial loss (144) (66) (46) Total recognized in other comprehensive loss, before taxes $ (2,134) $ 1,560 $ 484 Total recognized in net benefit cost and other comprehensive loss, before taxes $ 978 $ 3,217 $ 1,029 TPL reclassified less than $0.2 million (net of income tax benefit of less than $0.1 million) out of accumulated other comprehensive loss for net periodic benefit cost to other income, net for each of the years ended December 31, 2021, 2020 and 2019. The following table summarizes the projected benefit obligation in excess of Pension Plan assets and Pension Plan assets in excess of accumulated benefit obligation as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Projected benefit obligation in excess of Pension Plan assets: Projected benefit obligation $ 11,324 $ 9,717 Fair value of Pension Plan assets $ 10,713 $ 7,567 Plan assets in excess of accumulated benefit obligation: Accumulated benefit obligation $ 7,009 $ 6,348 Fair value of Pension Plan assets $ 10,713 $ 7,567 The following are weighted-average assumptions used to determine benefit obligations and costs as of December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 Weighted average assumptions used to determine benefit obligations as of December 31: Discount rate 3.00 % 2.75 % 3.25 % Rate of compensation increase 7.29 % 7.29 % 7.29 % Weighted average assumptions used to determine benefit costs for the years ended December 31: Discount rate 2.75 % 3.25 % 4.25 % Expected return on Pension Plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase 7.29 % 7.29 % 7.29 % The expected return on Pension Plan assets assumption of 7.0% was selected by TPL based on historical real rates of return for the current asset mix and an assumption with respect to future inflation. The rate was determined based on a long-term allocation of about two-thirds fixed income and one-third equity securities; historical real rates of return of about 2.5% and 8.5% for fixed income and equity securities, respectively; and assuming a long-term inflation rate of 2.5%. The Pension Plan has a formal investment policy statement. The Pension Plan’s investment objective is balanced income, with a moderate risk tolerance. This objective emphasizes current income through a 30.0% to 80.0% allocation to fixed income securities, complemented by a secondary consideration for capital appreciation through an equity allocation in the range of 20.0% to 60.0%. Diversification is achieved through investment in equities and bonds. The asset allocation is reviewed annually with respect to the target allocations and rebalancing adjustments and/or target allocation changes are made as appropriate. Our current funding policy is to maintain the Pension Plan’s fully funded status on an ERISA minimum funding basis. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The fair value accounting standards establish a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs used in measuring fair value, as follows: Level 1 – Inputs are based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since inputs are based on quoted prices that are readily and regularly available in an active market, Level 1 inputs require the least judgment. Level 2 – Inputs are based on quoted prices for similar instruments in active markets, or are observable either directly or indirectly. Inputs are obtained from various sources including financial institutions and brokers. Level 3 – Inputs that are unobservable and significant to the overall fair value measurement. The degree of judgment exercised by us in determining fair value is greatest for fair value measurements categorized in Level 3. The fair values of the Pension Plan assets by major asset category as of December 31, 2021 and 2020, respectively, are as follows (in thousands): Total Quoted Prices in Significant Other Significant As of December 31, 2021: Cash and cash equivalents — money markets $ 567 $ 567 $ — $ — Equities 3,490 3,490 — — Equity funds 1,342 1,342 — — Fixed income funds 596 596 — — Taxable bonds 4,718 4,718 — — Total $ 10,713 $ 10,713 $ — $ — As of December 31, 2020: Cash and cash equivalents — money markets $ 1,277 $ 1,277 $ — $ — Equities 1,567 1,567 — — Equity funds 1,503 1,503 — — Fixed income funds 797 797 — — Taxable bonds 2,423 2,423 — — Total $ 7,567 $ 7,567 $ — $ — Management intends to at least fund the minimum ERISA amount for 2022 and may make some discretionary contributions to the Pension Plan, the amounts of which have not yet been determined. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the following ten-year period (in thousands): Year ending December 31, Amount 2022 $ 250 2023 246 2024 243 2025 239 2026 238 2027 to 2030 1,541 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Plan for Employees On December 29, 2021, the Company adopted the Texas Pacific Land Corporation 2021 Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, cash-based awards and other stock-based awards. Awards granted under the 2021 Plan are generally subject to a minimum vesting period of at least one year. Awards may be subject to cliff-vesting or graded-vesting conditions, with graded-vesting starting no earlier than one year after the grant date. The maximum aggregate number of shares of the Company’s Common Stock that may be issued under the 2021 Plan is 75,000 shares. The following table sets forth the restricted stock activity for the year ended December 31, 2021: Year Ended December 31, 2021 Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 1 — $ — Granted 3,330 1,252 Vested — — Cancelled and forfeited — — Outstanding at December 31 3,330 $ 1,252 Restricted stock awards were granted December 29, 2021 with 1,993 shares vesting on December 29, 2022 and 1,337 shares vesting on December 29, 2023. Unvested restricted stock awards are entitled to dividends which are accrued and distributed to award recipients at the time such awards vest. For the year ended December 31, 2021, we recognized share compensation expense of less than $0.1 million. There was no share compensation expense for the year ended December 31, 2020. On February 11, 2022, the Company granted awards totaling 3,823 restricted stock units (“RSUs”) to certain employees. The grant date fair value was $1,105 per share. These time-based awards vest over three years upon the annual anniversary dates of the RSUs. On February 11, 2022, the Company also granted performance stock units (“PSUs”) to certain employees. Each PSU has a value equal to one share of Common Stock. The PSUs will vest three years after grant if certain performance metrics are met, as follows: 50% of the PSUs may be earned based on the Company’s relative total stockholder return (“RTSR”) for the three year period from January 2022 to January 2025 compared to the XOP Index, and 50% of the PSUs may be earned based on the cumulative free cash flow per share over the three year vesting period. Plan for Non-Employee Directors On December 29, 2021, the Company adopted the 2021 Non-Employee Director and Deferred Compensation Plan (the “2021 Directors Plan”). The maximum aggregate number of shares of Common Stock that may be issued under the 2021 Directors Plan is 10,000 shares, which may consist, in whole or in part, of authorized and unissued shares (if any), treasury shares, or shares reacquired by the Company in any manner. As of December 31, 2021, no shares had been granted under the 2021 Directors Plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe income tax provision charged to operations for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands): Years Ended December 31, 2021 2020 2019 Current: U.S. Federal $ 90,920 $ 44,395 $ 55,562 State and local 2,345 1,607 1,930 Current income tax expense 93,265 46,002 57,492 Deferred (benefit) expense (228) (2,389) 26,035 Total income tax expense $ 93,037 $ 43,613 $ 83,527 Although TPL was a trust until January 11, 2021, it has historically been taxed as if it were a corporation for income tax purposes prior to its conversion to a corporation. Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21% for the years ended December 31, 2021, 2020 and 2019 to income before Federal income taxes as a result of the following (in thousands): Years Ended December 31, 2021 2020 2019 Computed tax expense at the statutory rate of 21% $ 76,234 $ 46,129 $ 84,473 Reduction in income taxes resulting from: Statutory depletion (584) (4,577) (5,163) State taxes 1,740 1,234 1,657 Executive compensation 1,687 789 1,302 Prior year tax adjustments 18 7 755 Correction of historical tax depletion 12,975 — — Estimated penalties and interest 1,022 — — Other, net (55) 31 503 Total income tax expense $ 93,037 $ 43,613 $ 83,527 Effective tax rate (1) 25.6 % 19.9 % 20.8 % (1) The correction of historical tax depletion increased the effective tax rate from 22.1% to 25.6%. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 December 31, 2020 Unearned revenue $ 5,050 $ 5,633 Basis difference in pension plan liability 128 452 Other 25 — Total deferred tax assets 5,203 6,085 Property, plant and equipment 16,037 16,314 Real estate and royalty interests 28,114 28,494 Other — 5 Total deferred tax liabilities 44,151 44,813 Deferred taxes payable $ (38,948) $ (38,728) TPL is subject to taxation in the United States and Texas. TPL is no longer subject to U.S. Federal income tax examination by tax authorities for tax years before 2018. During the quarter ended December 31, 2021, TPL identified an error in income taxes payable and current income tax expense as a result of incorrect tax treatment of depletion related to our oil and gas royalty interests in our filed income tax returns related to prior periods. TPL determined that current income tax expense, |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is computed based upon the weighted average number of shares outstanding during the period plus unvested shares issued pursuant to our equity and deferred compensation plan. The computation of diluted net income per share reflects the potential dilution that could occur if all outstanding awards under the 2021 Plan were converted into shares of Common Stock or resulted in the issuance of shares of Common Stock that would then share in the earnings of the Company. The following table sets forth the computation of net income per share for the years ended December 31, 2021, 2020 and 2019 (in thousands, except number of shares and per share data): Years Ended December 31, 2021 2020 2019 Net income $ 269,980 $ 176,049 $ 318,728 Basic earnings per share: Weighted average shares outstanding for basic earnings per share 7,752,027 7,756,156 7,756,437 Basic earnings per share $ 34.83 $ 22.70 $ 41.09 Diluted earnings per share: Weighted average shares outstanding for basic earnings per share 7,752,027 7,756,156 7,756,437 Effect of Dilutive securities: Stock-based incentive plan 27 — — Weighted average shares outstanding for diluted earnings per share 7,752,054 7,756,156 7,756,437 Diluted earnings per share $ 34.83 $ 22.70 $ 41.09 Restricted stock is included in the number of shares of Common Stock issued and outstanding, but omitted from the basic earnings per share calculation until such time as the shares of restricted stock vest. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Commitments | Commitments Litigation Management is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the Company’s financial condition, results of operations or liquidity as of December 31, 2021. Lease Commitments As of December 31, 2021 and 2020, we have recorded right-of-use assets of $1.8 million and $2.5 million, respectively, and lease liabilities for $2.1 million and $2.8 million, respectively, primarily related to operating leases in connection with our administrative offices located in Dallas and Midland, Texas. The office lease agreements require monthly rent payments and expire in December 2025 and August 2022, respectively. Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease cost for the years ended December 31, 2021 and 2020 was $0.8 million and $0.7 million, respectively. While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations. There are no residual value guarantees in our lease commitments. The weighted-average lease term for our operating lease liabilities is approximately 44 months. The weighted average discount rate of our operating leases is 4.5%. Future minimum lease payments were as follows as of December 31, 2021 (in thousands): Year ending December 31, Amount 2022 $ 697 2023 537 2024 551 2025 516 Total lease payments 2,301 Less: imputed interest (182) Total operating lease liabilities $ 2,119 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | Equity Corporate Reorganization On January 11, 2021, TPL completed its Corporate Reorganization, officially changing its name to Texas Pacific Land Corporation. To implement the Corporate Reorganization, the Trust and TPL Corporation entered into agreements and undertook and caused to be undertaken a series of transactions to effect the transfer to TPL Corporation of all of the Trust’s assets, employees, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Corporate Reorganization. The agreements entered into include a contribution agreement between the Trust and TPL Corporation. The Corporate Reorganization was a tax-free reorganization under Section 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended. Prior to the market opening on January 11, 2021, the Trust distributed all of the shares of Common Stock of TPL Corporation to holders of Sub-shares of the Trust, on a pro rata, one-for-one, basis in accordance with their interests in the Trust (the “Distribution”). As a result of the Distribution, TPL Corporation is now an independent public company and its Common Stock is listed under the symbol “TPL” on the New York Stock Exchange. The Corporate Reorganization only affected our equity structure in that Sub-shares were replaced with shares of Common Stock and net proceeds from all sources were replaced with retained earnings on the consolidated balance sheet. Stock Repurchase Program On May 3, 2021, our board of directors approved a stock repurchase program to purchase up to an aggregate of $20.0 million of shares of our outstanding Common Stock. In connection with the stock repurchase program, the Company entered into a Rule 10b5-1 trading plan that generally permits the Company to repurchase shares at times when it might otherwise be prevented from doing so under securities laws. The stock repurchase program expired on December 31, 2021. Repurchased shares are held in treasury. For the year ended December 31, 2021, we repurchased 14,791 shares at an average per share amount of $1,346. Repurchases of Sub-shares Prior to the Corporate Reorganization For the year ended December 31, 2020, there were no Sub-shares repurchased. During the years ended December 31, 2019, we repurchased and retired 6,258 Sub-shares. Dividends During 2021, we paid total cash dividends of $11.00 per share of Common Stock, consisting of quarterly cash dividends of $2.75 per share of Common Stock in March, June, September and December 2021. During 2020, we paid a cash dividend of $10.00 per Sub-share in March 2020 and special dividends of $16.00 per Sub-share, consisting of $6.00 per Sub-share in March 2020 and $10.00 per Sub-share in December 2020. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We evaluated events that occurred after the balance sheet date through the date these financial statements were issued, and the following events that met recognition or disclosure criteria were identified: Dividend Declared |
Oil and Gas Producing Activitie
Oil and Gas Producing Activities (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Extractive Industries [Abstract] | |
Oil and Gas Producing Activities (Unaudited) | Oil and Gas Producing Activities (Unaudited) We measure our share of oil and gas produced in barrels of oil equivalent (“Boe”). One Boe equals one barrel of crude oil, condensate, NGLs (natural gas liquids) or approximately 6,000 cubic feet of gas. For the years ended December 31, 2021, 2020 and 2019, our share of oil and gas produced was approximately 18.6, 16.2 and 13.7 thousand Boe per day, respectively. Reserves related to our royalty interests are not presented because the information is unavailable. There are a number of oil and gas wells that have been drilled but are not yet completed (“DUC”) where we have a royalty interest. The number of DUC wells is determined using uniform drilling spacing units with pooled interests for all wells awaiting completion. We have identified 452, 531 and 486 DUC wells subject to our royalty interest as of December 31, 2021, 2020 and 2019, respectively. |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Business Segment Reporting During the periods presented, we reported our financial performance based on the following segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of our strategies and objectives and provide a framework for timely and rational allocation of resources within businesses. We eliminate any inter-segment revenues and expenses upon consolidation. The Land and Resource Management segment encompasses the business of managing our approximately 880,000 surface acres of land and our oil and gas royalty interests in West Texas, principally concentrated in the Permian Basin. The revenue streams of this segment consist primarily of royalties from oil and gas, revenues from easements and commercial leases and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin. The revenue streams of this segment primarily consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties. Segment financial results were as follows (in thousands): Years Ended December 31, 2021 2020 2019 Revenues: Land and resource management $ 320,387 $ 195,142 $ 363,328 Water services and operations 130,571 107,422 127,168 Total consolidated revenues $ 450,958 $ 302,564 $ 490,496 Net income: Land and resource management $ 208,897 $ 127,977 $ 258,366 Water services and operations 61,083 48,072 60,362 Total consolidated net income $ 269,980 $ 176,049 $ 318,728 Capital Expenditures: Land and resource management $ 4,688 $ 152 $ 1,603 Water services and operations 11,727 4,934 30,606 Total capital expenditures $ 16,415 $ 5,086 $ 32,209 Depreciation, depletion and amortization: Land and resource management $ 2,397 $ 1,514 $ 1,201 Water services and operations 13,860 12,881 7,705 Total depreciation, depletion and amortization $ 16,257 $ 14,395 $ 8,906 The following table presents total assets and property, plant and equipment, net by segment (in thousands): December 31, 2021 December 31, 2020 Assets: Land and resource management $ 635,338 $ 460,053 Water services and operations 128,726 111,582 Total consolidated assets $ 764,064 $ 571,635 Property, plant and equipment, net: Land and resource management $ 6,639 $ 3,527 Water services and operations 73,083 75,740 Total consolidated property, plant and equipment, net $ 79,722 $ 79,267 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include our consolidated accounts and the accounts of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. |
Change in Accounting Estimate | Change in Accounting Estimate Management evaluates its estimates on a routine basis. Effective July 1, 2019, TPL revised the estimated useful lives of certain water service-related assets after its disaggregation of water service-related projects into sub classifications. TPL purchased these water service-related assets from July 1, 2017 through June 30, 2019. Based on information gained from operations over this time period, management believes that these water service-related assets will benefit periods ranging from three |
Revenue Recognition | Revenue Recognition Oil and Gas Royalties Oil and gas royalties are received in connection with royalty interests owned by TPL. Oil and gas royalties are reported net of production taxes and are recognized as revenue when crude oil and gas products are removed from the respective mineral reserve locations. Oil and gas royalty payments are generally received one The oil and gas royalties which we receive are dependent upon the market prices for oil and gas, and locational and contractual price differences. The market prices for oil and gas are subject to national and international economic and political conditions and subject to significant price fluctuations. TPL has analyzed public reports of drilling activities by the oil companies operating where we have an oil and gas royalty interest in an effort to identify unpaid royalties associated with royalty interests we own. Rights to certain oil and gas royalties we believe to be due and payable may be subject to dispute with the oil company involved as a result of disagreements with respect to drilling and related engineering information. Disputed oil and gas royalties are recorded when these contingencies are resolved. Easements and Other Surface-Related Income Easement contracts represent contracts which permit companies to install pipelines, electric lines and other equipment on land owned by TPL. When TPL receives a signed contract and payment, we make available the respective parcel of land to the grantee. Easement income is recognized upon the execution of the easement agreement, or in the event of a renewal upon receipt of the renewal payment, as at that point in time, we have satisfied our performance obligation and the customer has right of use. Leases of our surface acreage include, but are not limited to, facility, roadway and surface leases with a typical lease term of ten years and generally require fixed annual payments. Lease cancellations are allowed under certain circumstances, but initial lease deposits are generally nonrefundable. The initial lease deposits and annual payments are recorded as unearned revenue upon receipt and amortized over the life of the lease. Advance lease payments are deferred and amortized over the appropriate accounting period. Other surface-related income also includes revenue from permits and material sales. Revenue from permits is recognized upon execution of the contract and receipt of payment. Revenue from material sales is recognized upon the removal of materials by the customer. Water Sales Water sales revenue encompasses sales of water to operators and other customers and royalties received pursuant to legacy agreements with operators. The earnings cycle for both revenue streams is complete upon delivery of water. Water sales and royalty revenue is recognized as earned. Produced Water Royalties Produced water royalties represents revenue from the transportation and disposal of saltwater from producing oil and gas wells on our land. Revenue is recognized when the water is transported across or injected into our land. Land Sales and Exchanges We consider purchasers of land to be our customers as land management, leasing and sales are normal operating activities for TPL. Revenue is recognized on land sales when the performance obligation to the purchaser (customer) is complete. Revenue from land exchanges is recognized based upon the estimated fair value of the consideration exchanged. |
Cash, Cash Equivalents and Restricted Cash | We consider investments in bank deposits, money market funds, and highly-liquid cash investments with original maturities of three months or less to be cash equivalents. |
Receivables | Receivables |
Accrual of Oil and Gas Royalties | Accrual of Oil and Gas RoyaltiesThe Company accrues oil and gas royalties, which are included in accounts receivable and accrued receivables, net. An accrual is necessary due to the time lag between the production of oil and gas and generation of the actual payment by operators. The oil and gas royalty accrual is based upon historical production volumes, estimates of the timing of future payments and recent market prices for oil and gas. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is carried at cost less accumulated depreciation. Maintenance and repair costs are expensed as incurred. Costs associated with our development of infrastructure for sourcing and treating water are capitalized. We account for depreciation of property, plant and equipment on the straight-line method over the estimated useful lives of the assets. Depreciable lives by category are as follows: Range of Estimated Useful Lives (in years) Water wells and other water-related assets 3 to 30 Furniture, fixtures and equipment 3 to 15 |
Real Estate Acquired | Real Estate Acquired |
Royalty Interests Acquired | Royalty Interests Acquired We follow the successful efforts method of accounting for our royalty interests acquired, which are carried at the lower of cost or market. Valuations are periodically performed or obtained by management whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments, if any, are recorded by a charge to net income and a reduction in the carrying value of our royalty interests if the carrying value exceeds the estimated fair value. No impairments were recorded for the years ended December 31, 2021, 2020 and 2019. |
Real Estate and Royalty Interests Assigned Through the 1888 Declaration of Trust | Real Estate and Royalty Interests Assigned Through the 1888 Declaration of Trust The fair market value of the Trust’s land and royalty interests that were assigned through the 1888 Declaration of Trust, (referred to as “Assigned”) land and royalty interests, was not determined in 1888 when the Trust was formed; therefore, no value is assigned in the accompanying consolidated balance sheets to the Assigned land and royalty interests. Consequently, in the consolidated statements of income and total comprehensive income, no allowance is made for depletion and no cost is deducted from the proceeds of sales of the Assigned land and royalty interests. Even though the 1888 value of real properties cannot be precisely determined, it has been concluded that the effect of this matter can no longer be significant to our financial position or results of operations. Minimal real estate improvements are made to land. |
Leases | Leases We lease certain facilities under operating leases. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include our administrative offices located in Dallas and Midland, Texas, as well as some modular buildings in our West Texas yards. Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. Short-term leases with an initial term of 12 months or less are not recognized in the right-to-use asset and lease liability on the consolidated balance sheets. The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee. For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payments for items such as common area maintenance and parking. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. See Note 10, “Commitments” for additional information. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The liability for unrecognized tax benefits is zero as of December 31, 2021 and 2020. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of income and total comprehensive income. |
Share-based Compensation | Share-based Compensation For share-based compensation awards, the Company recognizes compensation expense in the financial statements over the awards’ vesting periods using the graded-vesting method for its awards with service conditions only. The Company utilizes the closing stock price on the date of grant to determine the fair value of service-vesting restricted stock awards. Unvested restricted stock awards are entitled to dividends which are accrued and distributed to award recipients at the time such awards vest. Forfeitures are recognized in the period in which they occur. Share-based compensation is included as a component of salaries and related employee expenses on the consolidated statements of income and total comprehensive income. |
Net Income Per Share | Net Income Per Share Basic income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is computed based upon the weighted average number of shares outstanding during the period plus unvested shares issued pursuant to our equity and deferred compensation plans. See Note 9, “Net Income Per Share.” |
Treasury Stock | Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired Common Stock is recorded as treasury stock. The cost associated with issuance of treasury stock is based on the average cost of treasury stock as of the date of issuance. Purchases and Retirements of Sub-shares |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other gains and losses affecting capital that, under GAAP, are excluded from net income. |
Concentrations of Credit Risk | Concentrations of Credit Risk We invest our cash and cash equivalents (which include U.S. Treasury bills and commercial paper with maturities of three months or less) among three major financial institutions in an attempt to minimize exposure to risk from any one of these entities. As of December 31, 2021 and 2020, we had cash and cash equivalents deposited in our financial institutions in excess of federally-insured levels. We regularly monitor the financial condition of these financial institutions and believe that we are not exposed to any significant credit risk in cash and cash equivalents. |
Significant Customers | Significant Customers Three customers represented, in the aggregate, 41.0% of TPL’s total revenues for the year ended December 31, 2021. Two customers represented, in the aggregate, 28.3% and 36.5% of TPL’s total revenues for the years ended December 31, 2020, and 2019, respectively. |
Reclassifications | Reclassifications Certain financial information on the consolidated statements of income and total comprehensive income for the years ended December 31, 2020 and 2019 have been revised to conform to the current year presentation. These revisions include a reclassification of $50.6 million and $39.1 million of produced water royalties revenue for the years ended December 31, 2020 and |
Recently Adopted Accounting Guidance and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Guidance In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “ Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes.” The ASU simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The Company adopted the guidance effective January 1, 2021. The adoption had minimal impact on the Company’s consolidated financial statements and disclosures. Recently Issued Accounting Pronouncements In July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842) Lessors – Certain Leases with Variable Lease Payments .” Under the ASU, a lessor would classify a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if the lease would have been classified as a sales-type lease or direct financing lease under ASC 842 classification criteria and the lessor would have otherwise recognized a day one loss. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance effective January 1, 2022, had no impact on our consolidated financial statements and disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands): December 31, 2021 December 31, 2020 Cash and cash equivalents $ 428,242 $ 281,046 Tax like-kind exchange escrow — 1,978 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 428,242 $ 283,024 |
Schedule of Property, Plant and Equipment | Depreciable lives by category are as follows: Range of Estimated Useful Lives (in years) Water wells and other water-related assets 3 to 30 Furniture, fixtures and equipment 3 to 15 Property, plant and equipment, net consisted of the following as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Property, plant and equipment, at cost: Water service-related assets (1) $ 108,732 $ 97,699 Furniture, fixtures and equipment 9,071 6,125 Other 598 598 Total property, plant and equipment, at cost 118,401 104,422 Less: accumulated depreciation (38,679) (25,155) Property, plant and equipment, net $ 79,722 $ 79,267 (1) Water service-related assets reflect assets related to water sourcing and water treatment projects. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Depreciable lives by category are as follows: Range of Estimated Useful Lives (in years) Water wells and other water-related assets 3 to 30 Furniture, fixtures and equipment 3 to 15 Property, plant and equipment, net consisted of the following as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Property, plant and equipment, at cost: Water service-related assets (1) $ 108,732 $ 97,699 Furniture, fixtures and equipment 9,071 6,125 Other 598 598 Total property, plant and equipment, at cost 118,401 104,422 Less: accumulated depreciation (38,679) (25,155) Property, plant and equipment, net $ 79,722 $ 79,267 (1) Water service-related assets reflect assets related to water sourcing and water treatment projects. |
Real Estate Activity (Tables)
Real Estate Activity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of Real Estate Activity | As of December 31, 2021 and 2020, TPL owned the following land and real estate (in thousands, except number of acres): December 31, December 31, 2021 2020 Number of Acres Net Book Value Number of Acres Net Book Value Land (surface rights) (1) 823,452 $ — 823,482 $ — Real estate acquired 57,129 109,071 57,041 108,536 Total real estate situated in Texas 880,581 $ 109,071 880,523 $ 108,536 (1) Real estate assigned through the 1888 Declaration of Trust. |
Oil and Gas Royalty Interests (
Oil and Gas Royalty Interests (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of Royalty Interests | As of December 31, 2021 and 2020, we owned the following oil and gas royalty interests (in thousands, except number of acres): Net Book Value December 31, 2021 December 31, 2020 1/16th nonparticipating perpetual royalty interests (1) $ — $ — 1/128th nonparticipating perpetual royalty interests (2) — — Royalty interests acquired (3) 46,266 46,266 Total royalty interests, gross $ 46,266 $ 46,266 Less: accumulated depletion (1,876) (620) Total royalty interests, net $ 44,390 $ 45,646 (1) Nonparticipating perpetual royalty interests in 370,737 gross royalty acres as of December 31, 2021 and 2020. (2) Nonparticipating perpetual royalty interests in 84,934 gross royalty acres as of December 31, 2021 and 2020. (3) Royalty interest in 4,090 net royalty acres as of December 31, 2021 and 2020. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Net Funded Status | The following table sets forth the Pension Plan’s changes in benefit obligation, changes in fair value of assets, and funded status as of December 31, 2021 and 2020 using a measurement date of December 31 (in thousands): December 31, 2021 December 31, 2020 Change in projected benefits obligation: Projected benefit obligation at beginning of year $ 9,717 $ 6,577 Service cost 3,225 1,835 Interest cost 264 210 Actuarial loss (1,637) 1,333 Benefits paid (245) (238) Projected benefit obligation at end of year $ 11,324 $ 9,717 Change in Pension Plan assets: Fair value of Pension Plan assets at beginning of year $ 7,567 $ 6,615 Actual return on Pension Plan assets 874 161 Contributions by employer 2,517 1,029 Benefits paid (245) (238) Fair value of Pension Plan assets at end of year 10,713 7,567 Funded (unfunded) status at end of year $ (611) $ (2,150) |
Schedule of Defined Benefit Plans Disclosures | Amounts recognized in the balance sheets as of December 31, 2021 and 2020 consist of (in thousands): December 31, 2021 December 31, 2020 Assets $ — $ — Liabilities 611 2,150 $ 611 $ 2,150 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss consist of the following as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Net actuarial loss $ (1,275) $ (3,409) Amounts recognized in accumulated other comprehensive loss, before taxes (1,275) (3,409) Income tax benefit 268 716 Amounts recognized in accumulated other comprehensive loss, after taxes $ (1,007) $ (2,693) |
Schedule of Net Benefit Costs | Net periodic benefit cost for the years ended December 31, 2021, 2020 and 2019 include the following components (in thousands): Years Ended December 31, 2021 2020 2019 Components of net periodic benefit cost: Service cost $ 3,225 $ 1,835 $ 666 Interest cost 264 210 197 Expected return on Pension Plan assets (521) (454) (364) Amortization of net loss 144 66 46 Net periodic benefit cost $ 3,112 $ 1,657 $ 545 |
Schedule of Other Changes in Plan Assets and Benefit Obligations | Other changes in Pension Plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2021, 2020 and 2019 (in thousands): Years Ended December 31, 2021 2020 2019 Net actuarial (gain) loss $ (1,990) $ 1,626 $ 530 Recognized actuarial loss (144) (66) (46) Total recognized in other comprehensive loss, before taxes $ (2,134) $ 1,560 $ 484 Total recognized in net benefit cost and other comprehensive loss, before taxes $ 978 $ 3,217 $ 1,029 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The following table summarizes the projected benefit obligation in excess of Pension Plan assets and Pension Plan assets in excess of accumulated benefit obligation as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Projected benefit obligation in excess of Pension Plan assets: Projected benefit obligation $ 11,324 $ 9,717 Fair value of Pension Plan assets $ 10,713 $ 7,567 Plan assets in excess of accumulated benefit obligation: Accumulated benefit obligation $ 7,009 $ 6,348 Fair value of Pension Plan assets $ 10,713 $ 7,567 |
Schedule of Assumptions Used | The following are weighted-average assumptions used to determine benefit obligations and costs as of December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 Weighted average assumptions used to determine benefit obligations as of December 31: Discount rate 3.00 % 2.75 % 3.25 % Rate of compensation increase 7.29 % 7.29 % 7.29 % Weighted average assumptions used to determine benefit costs for the years ended December 31: Discount rate 2.75 % 3.25 % 4.25 % Expected return on Pension Plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase 7.29 % 7.29 % 7.29 % |
Schedule of Plan Assets by Major Asset Category | The fair values of the Pension Plan assets by major asset category as of December 31, 2021 and 2020, respectively, are as follows (in thousands): Total Quoted Prices in Significant Other Significant As of December 31, 2021: Cash and cash equivalents — money markets $ 567 $ 567 $ — $ — Equities 3,490 3,490 — — Equity funds 1,342 1,342 — — Fixed income funds 596 596 — — Taxable bonds 4,718 4,718 — — Total $ 10,713 $ 10,713 $ — $ — As of December 31, 2020: Cash and cash equivalents — money markets $ 1,277 $ 1,277 $ — $ — Equities 1,567 1,567 — — Equity funds 1,503 1,503 — — Fixed income funds 797 797 — — Taxable bonds 2,423 2,423 — — Total $ 7,567 $ 7,567 $ — $ — |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the following ten-year period (in thousands): Year ending December 31, Amount 2022 $ 250 2023 246 2024 243 2025 239 2026 238 2027 to 2030 1,541 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards | The following table sets forth the restricted stock activity for the year ended December 31, 2021: Year Ended December 31, 2021 Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 1 — $ — Granted 3,330 1,252 Vested — — Cancelled and forfeited — — Outstanding at December 31 3,330 $ 1,252 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision charged to operations for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands): Years Ended December 31, 2021 2020 2019 Current: U.S. Federal $ 90,920 $ 44,395 $ 55,562 State and local 2,345 1,607 1,930 Current income tax expense 93,265 46,002 57,492 Deferred (benefit) expense (228) (2,389) 26,035 Total income tax expense $ 93,037 $ 43,613 $ 83,527 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21% for the years ended December 31, 2021, 2020 and 2019 to income before Federal income taxes as a result of the following (in thousands): Years Ended December 31, 2021 2020 2019 Computed tax expense at the statutory rate of 21% $ 76,234 $ 46,129 $ 84,473 Reduction in income taxes resulting from: Statutory depletion (584) (4,577) (5,163) State taxes 1,740 1,234 1,657 Executive compensation 1,687 789 1,302 Prior year tax adjustments 18 7 755 Correction of historical tax depletion 12,975 — — Estimated penalties and interest 1,022 — — Other, net (55) 31 503 Total income tax expense $ 93,037 $ 43,613 $ 83,527 Effective tax rate (1) 25.6 % 19.9 % 20.8 % (1) The correction of historical tax depletion increased the effective tax rate from 22.1% to 25.6%. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 December 31, 2020 Unearned revenue $ 5,050 $ 5,633 Basis difference in pension plan liability 128 452 Other 25 — Total deferred tax assets 5,203 6,085 Property, plant and equipment 16,037 16,314 Real estate and royalty interests 28,114 28,494 Other — 5 Total deferred tax liabilities 44,151 44,813 Deferred taxes payable $ (38,948) $ (38,728) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of net income per share for the years ended December 31, 2021, 2020 and 2019 (in thousands, except number of shares and per share data): Years Ended December 31, 2021 2020 2019 Net income $ 269,980 $ 176,049 $ 318,728 Basic earnings per share: Weighted average shares outstanding for basic earnings per share 7,752,027 7,756,156 7,756,437 Basic earnings per share $ 34.83 $ 22.70 $ 41.09 Diluted earnings per share: Weighted average shares outstanding for basic earnings per share 7,752,027 7,756,156 7,756,437 Effect of Dilutive securities: Stock-based incentive plan 27 — — Weighted average shares outstanding for diluted earnings per share 7,752,054 7,756,156 7,756,437 Diluted earnings per share $ 34.83 $ 22.70 $ 41.09 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments were as follows as of December 31, 2021 (in thousands): Year ending December 31, Amount 2022 $ 697 2023 537 2024 551 2025 516 Total lease payments 2,301 Less: imputed interest (182) Total operating lease liabilities $ 2,119 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Results | Segment financial results were as follows (in thousands): Years Ended December 31, 2021 2020 2019 Revenues: Land and resource management $ 320,387 $ 195,142 $ 363,328 Water services and operations 130,571 107,422 127,168 Total consolidated revenues $ 450,958 $ 302,564 $ 490,496 Net income: Land and resource management $ 208,897 $ 127,977 $ 258,366 Water services and operations 61,083 48,072 60,362 Total consolidated net income $ 269,980 $ 176,049 $ 318,728 Capital Expenditures: Land and resource management $ 4,688 $ 152 $ 1,603 Water services and operations 11,727 4,934 30,606 Total capital expenditures $ 16,415 $ 5,086 $ 32,209 Depreciation, depletion and amortization: Land and resource management $ 2,397 $ 1,514 $ 1,201 Water services and operations 13,860 12,881 7,705 Total depreciation, depletion and amortization $ 16,257 $ 14,395 $ 8,906 |
Schedule of Total Assets And Property, Plant and Equipment | The following table presents total assets and property, plant and equipment, net by segment (in thousands): December 31, 2021 December 31, 2020 Assets: Land and resource management $ 635,338 $ 460,053 Water services and operations 128,726 111,582 Total consolidated assets $ 764,064 $ 571,635 Property, plant and equipment, net: Land and resource management $ 6,639 $ 3,527 Water services and operations 73,083 75,740 Total consolidated property, plant and equipment, net $ 79,722 $ 79,267 |
Organization and Description _2
Organization and Description of Business Segments (Details) a in Thousands | 12 Months Ended | |
Dec. 31, 2021asegment | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of operating segments | segment | 2 | |
1/16th nonparticipating perpetual royalty interest | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 6.25% | 6.25% |
1/128th nonparticipating perpetual royalty interest | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 0.78125% | 0.78125% |
West Texas | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Area of land (in acres) | 880 | |
West Texas | 1/128th Nonparticipating perpetual oil and gas royalty interest | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Area of land (in acres) | 85 | |
West Texas | 1/16th Nonparticipating perpetual oil and gas royalty interest | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Area of land (in acres) | 371 | |
West Texas | 1/8th Net royalty acres | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Area of land (in acres) | 4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($)financialInstitution$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Dec. 29, 2021$ / shares | Jan. 11, 2021$ / shares | |
Concentration Risk [Line Items] | |||||||
Depreciation expense | $ 14,800,000 | $ 13,800,000 | $ 8,500,000 | ||||
Valuation allowance | $ 100,000 | 100,000 | 100,000 | ||||
Accounts receivable and accrued receivables, net | 48,216,000 | 95,217,000 | 48,216,000 | ||||
Real estate impairments | 0 | 0 | 0 | ||||
Depletion expense | 1,300,000 | 400,000 | 300,000 | ||||
Unrecognized tax benefits | 0 | $ 0 | 0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Revenue | $ 450,958,000 | 302,564,000 | 490,496,000 | ||||
Land | |||||||
Concentration Risk [Line Items] | |||||||
Typical lease term | 10 years | ||||||
Sub shares | |||||||
Concentration Risk [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0333 | ||||||
Employee Stock | 2021 Plan | |||||||
Concentration Risk [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Produced water royalties | |||||||
Concentration Risk [Line Items] | |||||||
Revenue | $ 58,081,000 | 50,640,000 | 39,119,000 | ||||
Easements and other surface-related income | |||||||
Concentration Risk [Line Items] | |||||||
Revenue | 37,616,000 | 41,398,000 | 76,243,000 | ||||
Oil and gas royalties | |||||||
Concentration Risk [Line Items] | |||||||
Accounts receivable and accrued receivables, net | 20,700,000 | 49,900,000 | 20,700,000 | ||||
Revenue | $ 286,468,000 | 137,948,000 | 154,729,000 | ||||
Revision of prior period, reclassification, adjustment | Produced water royalties | |||||||
Concentration Risk [Line Items] | |||||||
Revenue | $ 50,600,000 | 39,100,000 | |||||
Revision of prior period, reclassification, adjustment | Easements and other surface-related income | |||||||
Concentration Risk [Line Items] | |||||||
Revenue | $ (50,600,000) | $ (39,100,000) | |||||
Cash and cash equivalents | Customer concentration risk | |||||||
Concentration Risk [Line Items] | |||||||
Number of customers | financialInstitution | 3 | ||||||
Sales revenue, net | Customer concentration risk | Significant Customers | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk (in percentage) | (41.00%) | (28.30%) | (36.50%) | ||||
Service life | |||||||
Concentration Risk [Line Items] | |||||||
Depreciation expense | $ 2,400,000 | ||||||
Maximum | |||||||
Concentration Risk [Line Items] | |||||||
Royalty payment arrangement, term | 2 months | ||||||
Maximum | Water service-related assets | |||||||
Concentration Risk [Line Items] | |||||||
Finite-lived intangible asset, useful life | 30 years | ||||||
Minimum | |||||||
Concentration Risk [Line Items] | |||||||
Royalty payment arrangement, term | 1 month | ||||||
Minimum | Water service-related assets | |||||||
Concentration Risk [Line Items] | |||||||
Finite-lived intangible asset, useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 428,242 | $ 281,046 | ||
Tax like-kind exchange escrow | 0 | 1,978 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 428,242 | $ 283,024 | $ 303,645 | $ 123,446 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property, Plant and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Water wells and other water-related assets | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Minimum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Maximum | Water wells and other water-related assets | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 30 years |
Maximum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 15 years |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 118,401 | $ 104,422 | |
Less: accumulated depreciation | (38,679) | (25,155) | |
Property, plant and equipment, net | 79,722 | 79,267 | |
Depreciation expense | 14,800 | 13,800 | $ 8,500 |
Water service-related assets | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | 108,732 | 97,699 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | 9,071 | 6,125 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 598 | $ 598 |
Real Estate Activity - Schedule
Real Estate Activity - Schedule of Land and Real Estate Ownership (Details) $ in Thousands | Dec. 31, 2021USD ($)a | Dec. 31, 2020USD ($)a |
Number of Acres | ||
Land (surface rights) (acre) | a | 823,452 | 823,482 |
Real estate acquired (acre) | a | 57,129 | 57,041 |
Total real estate situated in Texas | a | 880,581 | 880,523 |
Net Book Value | ||
Land (surface rights) | $ | $ 0 | $ 0 |
Real estate acquired | $ | 109,071 | 108,536 |
Total real estate situated in Texas | $ | $ 109,071 | $ 108,536 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)a$ / a | Dec. 31, 2020USD ($)a$ / a | Dec. 31, 2019USD ($)a$ / a | |
Real Estate Properties [Line Items] | |||
Revenue | $ 450,958 | $ 302,564 | $ 490,496 |
Texas | |||
Real Estate Properties [Line Items] | |||
Area of real estate property, sold (in acres) | a | 30 | 22,160 | 21,986 |
Proceeds from sale of real estate | $ 700 | ||
Average sales price (in USD per acre) | $ / a | 25,000 | ||
Acres of land exchanged from trust (in acres) | a | 5,620 | ||
Acres of land received from exchange (in acres) | a | 5,545 | ||
Additions (acres) | a | 88 | 756 | 21,671 |
Land sales and other operating revenue | Texas | |||
Real Estate Properties [Line Items] | |||
Proceeds from sale of real estate | $ 16,000 | $ 113,000 | |
Average sales price (in USD per acre) | $ / a | 721 | 5,141 | |
Revenue | $ 1,400 | $ 22,000 | |
Land acquisitions | Texas | |||
Real Estate Properties [Line Items] | |||
Additions | $ 500 | $ 3,900 | $ 74,400 |
Average purchase price (in USD per acre) | $ / a | 6,086 | 5,134 | 3,434 |
Oil and Gas Royalty Interests_2
Oil and Gas Royalty Interests (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)a | Dec. 31, 2020USD ($)a | |
Net Book Value | ||
Royalty interest acquired | $ 46,266 | $ 46,266 |
Total royalty interests, gross | 46,266 | 46,266 |
Less: accumulated depletion | (1,876) | (620) |
Total royalty interests, net | 44,390 | 45,646 |
1/16th nonparticipating perpetual royalty interest | ||
Net Book Value | ||
1/16th nonparticipating perpetual royalty interest | $ 0 | $ 0 |
Nonparticipating perpetual royalty interest rate (in percentage) | 6.25% | 6.25% |
Gross royalty interests (in acres) | a | 370,737 | 370,737 |
1/128th nonparticipating perpetual royalty interest | ||
Net Book Value | ||
1/128th nonparticipating perpetual royalty interest | $ 0 | $ 0 |
Nonparticipating perpetual royalty interest rate (in percentage) | 0.78125% | 0.78125% |
Gross royalty interests (in acres) | a | 84,934 | 84,934 |
Royalty interests in acres | ||
Net Book Value | ||
Net royalty interest acquired (in acres) | a | 4,090 | 4,090 |
Oil and Gas Royalty Interests -
Oil and Gas Royalty Interests - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)a$ / shares | Dec. 31, 2019USD ($)a$ / shares | |
Real Estate Properties [Line Items] | |||
Acquisition of royalty interests | $ 0 | $ 16,946 | $ 5,017 |
Additional real estate acquisitions | |||
Real Estate Properties [Line Items] | |||
Net royalty interests (in acres) | a | 1,017 | 1,247 | |
Acquisition in conjunction with sale of 1/8th interest royalty acres | |||
Real Estate Properties [Line Items] | |||
Acquisition of royalty interests | $ 16,900 | $ 4,700 | |
Average price per net royalty acre acquired (in USD per acre) | $ / shares | 16,668 | 3,800 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)h | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Matched contribution | 6.00% | ||
Employer contribution amount | $ 0.6 | $ 0.5 | $ 0.3 |
Hours of service (in hours) | h | 1,000 | ||
Requisite service period | 1 year | ||
Discount rate | 3.00% | 2.75% | 3.25% |
Projected benefit obligation | $ (0.7) | ||
Reclassification adjustment from AOCI, net of tax | 0.2 | $ 0.2 | $ 0.2 |
Reclassification adjustment from AOCI, tax | $ 0.1 | $ 0.1 | $ 0.1 |
Expected return on Pension Plan assets | 7.00% | 7.00% | 7.00% |
Inflation rate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on Pension Plan assets | 2.50% | ||
Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on Pension Plan assets | 2.50% | ||
Allocation of expected return on plan assets (in percentage) | 66.66667% | ||
Fixed income securities | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (in percentage) | 30.00% | ||
Fixed income securities | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (in percentage) | 80.00% | ||
Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on Pension Plan assets | 8.50% | ||
Allocation of expected return on plan assets (in percentage) | 33.33333% | ||
Equity securities | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (in percentage) | 20.00% | ||
Equity securities | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (in percentage) | 60.00% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Plan Changes in Fair Value of Plan Assets and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in projected benefits obligation: | |||
Projected benefit obligation at beginning of year | $ 9,717 | $ 6,577 | |
Service cost | 3,225 | 1,835 | $ 666 |
Interest cost | 264 | 210 | 197 |
Actuarial loss | (1,637) | 1,333 | |
Benefits paid | (245) | (238) | |
Projected benefit obligation at end of year | 11,324 | 9,717 | 6,577 |
Change in Pension Plan assets: | |||
Fair value of Pension Plan assets at beginning of year | 7,567 | 6,615 | |
Actual return on Pension Plan assets | 874 | 161 | |
Contributions by employer | 2,517 | 1,029 | |
Benefits paid | (245) | (238) | |
Fair value of Pension Plan assets at end of year | 10,713 | 7,567 | $ 6,615 |
Funded (unfunded) status at end of year | $ (611) | $ (2,150) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Amounts Recognized in the Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Payment Arrangement [Abstract] | ||
Assets | $ 0 | $ 0 |
Liabilities | 611 | 2,150 |
Total assets and liabilities recognized in balance sheets | $ 611 | $ 2,150 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Net actuarial loss | $ (1,275) | $ (3,409) |
Amounts recognized in accumulated other comprehensive loss, before taxes | (1,275) | (3,409) |
Income tax benefit | 268 | 716 |
Amounts recognized in accumulated other comprehensive loss, after taxes | $ (1,007) | $ (2,693) |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Summary of Net Periodic Benefits Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of net periodic benefit cost: | |||
Service cost | $ 3,225 | $ 1,835 | $ 666 |
Interest cost | 264 | 210 | 197 |
Expected return on Pension Plan assets | (521) | (454) | (364) |
Amortization of net loss | 144 | 66 | 46 |
Net periodic benefit cost | $ 3,112 | $ 1,657 | $ 545 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Net actuarial (gain) loss | $ (1,990) | $ 1,626 | $ 530 |
Recognized actuarial loss | (144) | (66) | (46) |
Total recognized in other comprehensive loss, before taxes | (2,134) | 1,560 | 484 |
Total recognized in net benefit cost and other comprehensive loss, before taxes | $ 978 | $ 3,217 | $ 1,029 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Projected Benefit Obligation and Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Projected benefit obligation in excess of Pension Plan assets: | |||
Projected benefit obligation | $ 11,324 | $ 9,717 | |
Fair value of Pension Plan assets | 10,713 | 7,567 | $ 6,615 |
Plan assets in excess of accumulated benefit obligation: | |||
Accumulated benefit obligation | 7,009 | 6,348 | |
Fair value of Pension Plan assets | $ 10,713 | $ 7,567 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Summary of Weighted-average Assumptions Used to Determine Benefit Obligations and Costs (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average assumptions used to determine benefit obligations as of December 31: | |||
Discount rate | 3.00% | 2.75% | 3.25% |
Rate of compensation increase | 7.29% | 7.29% | 7.29% |
Weighted average assumptions used to determine benefit costs for the years ended December 31: | |||
Discount rate | 2.75% | 3.25% | 4.25% |
Expected return on Pension Plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase | 7.29% | 7.29% | 7.29% |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Fair Values of Plan Assets by Major Asset Category (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | $ 10,713 | $ 7,567 | $ 6,615 |
Cash and cash equivalents — money markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 567 | 1,277 | |
Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 3,490 | 1,567 | |
Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 1,342 | 1,503 | |
Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 596 | 797 | |
Taxable bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 4,718 | 2,423 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 10,713 | 7,567 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents — money markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 567 | 1,277 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 3,490 | 1,567 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 1,342 | 1,503 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 596 | 797 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Taxable bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 4,718 | 2,423 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents — money markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Taxable bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents — money markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Taxable bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | $ 0 | $ 0 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Summary of Benefit Payments Over Ten Years (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Share-based Payment Arrangement [Abstract] | |
2022 | $ 250 |
2023 | 246 |
2024 | 243 |
2025 | 239 |
2026 | 238 |
2027 to 2030 | $ 1,541 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | Feb. 11, 2022 | Jan. 01, 2022 | Dec. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Payment Arrangement | 2021 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Vesting period start, period after grant date | 1 year | ||||
Employee Stock | 2021 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 75,000 | ||||
Common Stock | 2021 Directors Plan | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 10,000 | ||||
Awards granted (in shares) | 0 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share compensation expense | $ 0 | ||||
Granted (in dollars per share) | $ 1,252 | ||||
Granted (in shares) | 3,330 | ||||
Restricted Stock Units (RSUs) | Subsequent event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Awards granted (in shares) | 3,823 | ||||
Granted (in dollars per share) | $ 1,105 | ||||
Restricted Stock Units (RSUs) | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share compensation expense | $ 100,000 | ||||
Restricted Stock Units (RSUs) | Shares vesting December 29, 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in shares) | 1,993 | ||||
Restricted Stock Units (RSUs) | Shares vesting December 29, 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted (in shares) | 1,337 | ||||
Restricted Stock Units (RSUs) | 2021 Directors Plan | Director | Subsequent event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in dollars per share) | $ 1,249 | ||||
Granted (in shares) | 680 | ||||
Phantom Share Units (PSUs) | Subsequent event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
PSU conversion ration (in shares) | 1 | ||||
Phantom Share Units (PSUs) | Shares vesting December 29, 2022 | Subsequent event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 50.00% | ||||
Phantom Share Units (PSUs) | Shares vesting December 29, 2023 | Subsequent event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 50.00% |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Transactions (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | ||
Non-vested, beginning of period (in shares) | 0 | |
Granted (in shares) | 3,330 | |
Vested (in shares) | 0 | |
Cancelled and forfeited (in shares) | 0 | |
Non-vested, at end of period (in shares) | 3,330 | |
Weighted-Average Grant-Date Fair Value per Share | ||
Non-vested, beginning of period (in dollars per share) | $ 1,252 | $ 0 |
Granted (in dollars per share) | 1,252 | |
Vested (in dollars per share) | 0 | |
Cancelled and forfeited (in dollars per share) | 0 | |
Non-vested, at end of period (in dollars per share) | $ 1,252 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Charged to Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
U.S. Federal | $ 90,920 | $ 44,395 | $ 55,562 | |
State and local | 2,345 | 1,607 | 1,930 | |
Current income tax expense | 93,265 | 46,002 | 57,492 | |
Deferred (benefit) expense | (228) | (2,389) | 26,035 | |
Total income tax expense | $ 19,400 | $ 93,037 | $ 43,613 | $ 83,527 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense at Federal Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Computed tax expense at the statutory rate of 21% | $ 76,234 | $ 46,129 | $ 84,473 | |
Reduction in income taxes resulting from: | ||||
Statutory depletion | (584) | (4,577) | (5,163) | |
State taxes | 1,740 | 1,234 | 1,657 | |
Executive compensation | 1,687 | 789 | 1,302 | |
Prior year tax adjustments | 18 | 7 | 755 | |
Correction of historical tax depletion | 12,975 | 0 | 0 | |
Estimated penalties and interest | 1,022 | 0 | 0 | |
Other, net | (55) | 31 | 503 | |
Total income tax expense | $ 19,400 | $ 93,037 | $ 43,613 | $ 83,527 |
Effective tax rate | 22.10% | 25.60% | 19.90% | 20.80% |
Income Taxes - Summary of Tempo
Income Taxes - Summary of Temporary Differences in Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Unearned revenue | $ 5,050 | $ 5,633 |
Basis difference in pension plan liability | 128 | 452 |
Other | 25 | 0 |
Total deferred tax assets | 5,203 | 6,085 |
Property, plant and equipment | 16,037 | 16,314 |
Real estate and royalty interests | 28,114 | 28,494 |
Other | 0 | 5 |
Total deferred tax liabilities | 44,151 | 44,813 |
Deferred taxes payable | $ (38,948) | $ (38,728) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | |||||||||
Income taxes payable | $ 29,083,000 | $ 29,083,000 | $ 4,054,000 | ||||||
Current | 93,265,000 | 46,002,000 | $ 57,492,000 | ||||||
Total income tax expense | 19,400,000 | 93,037,000 | 43,613,000 | 83,527,000 | |||||
Accrued interest and penalties | 2,000,000 | $ 2,000,000 | 0 | ||||||
Prior Tax Years | |||||||||
Income Tax Examination [Line Items] | |||||||||
Total income tax expense | 13,000,000 | ||||||||
Tax Year 2021 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Total income tax expense | $ 6,400,000 | ||||||||
Understatement | |||||||||
Income Tax Examination [Line Items] | |||||||||
Current income tax expense, including penalties and interest | 4,600,000 | 4,700,000 | $ 3,700,000 | ||||||
Income taxes payable | $ 13,000,000 | $ 8,400,000 | |||||||
Current | $ 2,700,000 | $ 2,000,000 | $ 1,700,000 | $ 6,400,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income | $ 269,980 | $ 176,049 | $ 318,728 |
Basic earnings per share: | |||
Weighted average number of Sub-share Certificates outstanding - basic (in shares) | 7,752,027 | 7,756,156 | 7,756,437 |
Basic earnings per share (in dollars per share) | $ 34.83 | $ 22.70 | $ 41.09 |
Diluted earnings per share: | |||
Weighted average number of Sub-share Certificates outstanding - basic (in shares) | 7,752,027 | 7,756,156 | 7,756,437 |
Stock-based incentive plan | 27 | 0 | 0 |
Weighted average number of Sub-share Certificates outstanding - diluted (in shares) | 7,752,054 | 7,756,156 | 7,756,437 |
Diluted earnings per share (in dollars per share) | $ 34.83 | $ 22.70 | $ 41.09 |
Commitments - Narrative (Detail
Commitments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 1,826 | $ 2,473 | |
Total operating lease liabilities | 2,119 | 2,800 | |
Operating lease cost | $ 800 | 700 | |
Operating lease, weighted average remaining lease term | 44 months | ||
Operating lease, weighted average discount rate | 4.50% | ||
Rent expense | $ 800 | $ 800 | |
Rent expense | $ 700 |
Commitments - Future Minimum Le
Commitments - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 697 | |
2023 | 537 | |
2024 | 551 | |
2025 | 516 | |
Total lease payments | 2,301 | |
Less: imputed interest | 182 | |
Total operating lease liabilities | $ 2,119 | $ 2,800 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 03, 2021 | Jan. 11, 2021 | |
Class of Stock [Line Items] | |||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||
Shares authorized to be repurchased | $ 20 | ||||||||||
Average per share paid amount (in dollars per share) | 1,346 | ||||||||||
Dividend paid per sub-share (in USD per share) | $ 2.75 | $ 2.75 | $ 2.75 | $ 2.75 | $ 11 | $ 10 | $ 1.75 | ||||
Sub shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, par value (in dollars per share) | $ 0.0333 | ||||||||||
Number of shares repurchased and retired (in shares) | 0 | 6,258 | |||||||||
Sub shares | Cash dividend | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividend paid per sub-share (in USD per share) | $ 10 | ||||||||||
Sub shares | Special dividend | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividend paid per sub-share (in USD per share) | $ 10 | $ 6 | $ 16 | ||||||||
Treasury Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of shares repurchased and retired (in shares) | 14,791 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 11, 2022$ / shares |
Subsequent event | Dividend declared | |
Subsequent Event [Line Items] | |
Annual cash dividend (in dollars per share) | $ 3 |
Oil and Gas Producing Activit_2
Oil and Gas Producing Activities (Unaudited) (Details) | 12 Months Ended | ||
Dec. 31, 2021Boewell | Dec. 31, 2020Boewell | Dec. 31, 2019Boewell | |
Extractive Industries [Abstract] | |||
Share of oil and gas produced in thousands per day | Boe | 18,600 | 16,200 | 13,700 |
Number of oil and gas wells | well | 452 | 531 | 486 |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) a in Thousands | Dec. 31, 2021a |
West Texas | |
Segment Reporting Information [Line Items] | |
Area of land (in acres) | 880 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 450,958 | $ 302,564 | $ 490,496 |
Net income | 269,980 | 176,049 | 318,728 |
Capital expenditures | 16,415 | 5,086 | 32,209 |
Depreciation, depletion and amortization | 16,257 | 14,395 | 8,906 |
Land and resource management | |||
Segment Reporting Information [Line Items] | |||
Revenue | 320,387 | 195,142 | 363,328 |
Net income | 208,897 | 127,977 | 258,366 |
Capital expenditures | 4,688 | 152 | 1,603 |
Depreciation, depletion and amortization | 2,397 | 1,514 | 1,201 |
Water services and operations | |||
Segment Reporting Information [Line Items] | |||
Revenue | 130,571 | 107,422 | 127,168 |
Net income | 61,083 | 48,072 | 60,362 |
Capital expenditures | 11,727 | 4,934 | 30,606 |
Depreciation, depletion and amortization | $ 13,860 | $ 12,881 | $ 7,705 |
Business Segment Reporting - As
Business Segment Reporting - Assets and Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 764,064 | $ 571,635 |
Property, plant and equipment, net | 79,722 | 79,267 |
Land and resource management | ||
Segment Reporting Information [Line Items] | ||
Total assets | 635,338 | 460,053 |
Property, plant and equipment, net | 6,639 | 3,527 |
Water services and operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 128,726 | 111,582 |
Property, plant and equipment, net | $ 73,083 | $ 75,740 |