Texas Pacific Land (TPL) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,722,371
Entity Central Index Key	0001811074
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 389,794	$ 428,242
Accounts receivable and accrued receivables, net	132,410	95,217
Prepaid expenses and other current assets	1,732	3,054
Total current assets	523,936	526,513
Real estate acquired	109,083	109,071
Property, plant and equipment, net	83,444	79,722
Royalty interests acquired, net	45,583	44,390
Other assets	2,662	4,368
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned:
Total assets	764,708	764,064
LIABILITIES AND EQUITY
Accounts payable and accrued expenses	29,284	18,008
Income taxes payable	22,650	29,083
Unearned revenue	5,139	3,809
Total current liabilities	57,073	50,900
Deferred taxes payable	37,995	38,948
Unearned revenue - noncurrent	21,196	20,449
Accrued liabilities	3,163	2,056
Total liabilities	119,427	112,353
Commitments and contingencies	0	0
Equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized, none outstanding as of June 30, 2022 and December 31, 2021	0	0
Common stock, $0.01 par value; 7,756,156 shares authorized and 7,727,916 and 7,744,695 outstanding as of June 30, 2022 and December 31, 2021, respectively	78	78
Treasury stock, at cost; 28,240 and 11,461 shares as of June 30, 2022 and December 31, 2021, respectively	(40,011)	(15,417)
Additional paid-in capital	3,356	28
Accumulated other comprehensive loss	(991)	(1,007)
Retained earnings	682,849	668,029
Total equity	645,281	651,711
Total liabilities and equity	764,708	764,064
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 interests
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 interests
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned:
1/128th nonparticipating perpetual royalty interest	$ 0	$ 0

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock authorized (in shares)	1,000,000	1,000,000
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	7,756,156	7,756,156
Common stock, outstanding (in shares)	7,727,916	7,744,695
Treasury stock, at cost (in shares)	28,240	11,461
1/16th nonparticipating perpetual royalty interests
Nonparticipating perpetual royalty interest rate (in percentage)	6.25%	6.25%
1/128th nonparticipating perpetual royalty interests
Nonparticipating perpetual royalty interest rate (in percentage)	0.78125%	0.78125%

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Total revenues	$ 176,270	$ 95,932	$ 323,605	$ 180,087
Expenses:
Salaries and related employee expenses	9,588	13,271	18,973	23,250
Water service-related expenses	3,915	3,551	6,697	6,849
General and administrative expenses	3,705	2,841	6,705	5,647
Legal and professional fees	1,163	1,141	2,882	3,353
Ad valorem taxes	2,011	0	4,021	0
Depreciation, depletion and amortization	4,180	3,858	8,306	7,696
Total operating expenses	24,562	24,662	47,584	46,795
Operating income	151,708	71,270	276,021	133,292
Other income, net	630	406	706	411
Income before income taxes	152,338	71,676	276,727	133,703
Income tax expense	33,444	14,630	59,933	26,605
Net income	118,894	57,046	216,794	107,098
Other comprehensive income — periodic pension costs, net of income taxes for the three and six months ended June 30, 2022 and 2021 of $2, $8, $4, and $15, respectively	8	29	16	57
Total comprehensive income	$ 118,902	$ 57,075	$ 216,810	$ 107,155
Net income per share of common stock
Net income per sub-share certificate - basic (in dollars per share)	$ 15.37	$ 7.36	$ 28.02	$ 13.81
Net income per sub-share certificate - diluted (in dollars per share)	$ 15.37	$ 7.36	$ 28.01	$ 13.81
Weighted average number of shares of common stock outstanding
Weighted average number of shares of common stock outstanding - basic (in shares)	7,733,730	7,755,886	7,737,527	7,756,020
Weighted average number of shares of common stock outstanding - diluted (in shares)	7,737,112	7,755,886	7,739,859	7,756,020
Dividend paid per common stock (in USD per share)	$ 23	$ 2.75	$ 26	$ 5.50
Oil and gas royalties
Revenues:
Total revenues	$ 121,268	$ 58,204	$ 225,440	$ 107,737
Water sales
Revenues:
Total revenues	22,272	12,473	41,092	25,429
Produced water royalties
Revenues:
Total revenues	18,669	15,458	33,539	28,007
Easements and other surface-related income
Revenues:
Total revenues	13,990	8,977	23,182	18,024
Land sales and other operating revenue
Revenues:
Total revenues	$ 71	$ 820	$ 352	$ 890

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Other comprehensive income - periodic pension costs	$ 2	$ 2	$ 8	$ 8	$ 4	$ 15

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income	$ 216,794	$ 107,098
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	(953)	(382)
Depreciation, depletion and amortization	8,306	7,696
Share-based compensation	3,495	0
Changes in operating assets and liabilities:
Operating assets, excluding income taxes	(35,472)	(18,126)
Operating liabilities, excluding income taxes	9,668	814
Income taxes payable	(6,433)	(611)
Cash provided by operating activities	195,405	96,489
Cash flows from investing activities:
Proceeds from sale of fixed assets	96	0
Acquisition of real estate	(12)	(10)
Acquisition of royalty interests	(1,662)	0
Purchase of fixed assets	(6,685)	(4,461)
Cash used in investing activities	(8,263)	(4,471)
Cash flows from financing activities:
Repurchases of common stock	(24,592)	(2,504)
Dividends paid	(200,998)	(42,658)
Cash used in financing activities	(225,590)	(45,162)
Net (decrease) increase in cash, cash equivalents and restricted cash	(38,448)	46,856
Cash, cash equivalents and restricted cash, beginning of period	428,242	283,024
Cash, cash equivalents and restricted cash, end of period	389,794	329,880
Supplemental disclosure of cash flow information:
Income taxes paid	67,324	27,613
Supplemental non-cash investing and financing information:
Nonmonetary exchange of assets	4,174	0
Increase in accounts payable related to capital expenditures	3,662	451
Share repurchases not yet settled	1,161	0
Issuance of common stock	$ 0	$ 78

Organization and Description of

Organization and Description of Business Segments	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business Segments	Organization and Description of Business Segments Organization 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 10, “Changes in Equity.” Any references in these condensed 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 or after that date are in reference to Texas Pacific Land Corporation or TPL Corporation. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. The condensed consolidated financial statements herein include all adjustments which are, in the opinion of management, necessary to fairly state the financial position of the Company as of June 30, 2022 and the results of its operations for the three and six months ended June 30, 2022 and 2021, respectively, and its cash flows for the six months ended June 30, 2022 and 2021, respectively. Such adjustments are of a normal nature and all intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, and accordingly these interim financial statements and footnotes should be read in conjunction with the audited financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2021. The results for the interim periods shown in this report are not necessarily indicative of future financial results. 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 11, “Business Segment Reporting” for further information regarding our segments.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies 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. Compensation The Company utilizes the closing stock price on the date of grant to determine the fair value of service-vesting awards, which for the Company includes restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) with a performance condition. For PSUs with a market condition, grant date fair value is determined using an advanced option-pricing model. Unvested awards are entitled to dividends or dividend equivalents which are accrued and distributed to award recipients at the time such awards vest. Dividends are forfeitable if the related award is forfeited. For RSAs, RSUs and PSUs with performance conditions, forfeitures are recognized in the period in which they occur. For PSU awards with market conditions, forfeitures are only recognized if the award recipient does not render the required service during the measurement period. Compensation expense for RSUs and RSAs is recognized in the financial statements over the awards’ vesting periods using the graded-vesting method. Compensation expense for PSU awards with performance conditions is recognized ratably over the measurement period at such time as the awards are probable and estimable. Compensation expense for PSU awards with market conditions is recognized ratably over the measurement period whether the market condition is satisfied or not if the service for the award is rendered. Share-based compensation is reported on the condensed consolidated statements of income and total comprehensive income as a component of salaries and related employee expenses for employee awards and in general and administrative expenses for director awards. Recently Adopted Accounting Guidance In July 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-05, “ Leases (Topic 842) Lessors – Certain Leases with Variable Lease Payments .” Under the ASU, a lessor classifies 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 adoption of this guidance effective January 1, 2022, had no impact on our condensed consolidated financial statements and disclosures.

Real Estate Activity

Real Estate Activity	6 Months Ended
	Jun. 30, 2022
Real Estate [Abstract]
Real Estate Activity	Real Estate Activity As of June 30, 2022 and December 31, 2021, TPL owned the following land and real estate (in thousands, except number of acres): June 30, December 31, Number of Acres Net Book Value Number of Acres Net Book Value Land (surface rights) (1) 823,445 $ — 823,452 $ — Real estate acquired 57,146 109,083 57,129 109,071 Total real estate situated in Texas 880,591 $ 109,083 880,581 $ 109,071 (1) Real estate assigned through the Declaration of Trust.

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment, net consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, Property, plant and equipment, at cost: Water service-related assets $ 117,967 $ 108,732 Furniture, fixtures and equipment 9,384 9,071 Other 598 598 Total property, plant and equipment, at cost 127,949 118,401 Less: accumulated depreciation (44,505) (38,679) Property, plant and equipment, net $ 83,444 $ 79,722

Oil and Gas Royalty Interests

Oil and Gas Royalty Interests	6 Months Ended
	Jun. 30, 2022
Real Estate [Abstract]
Oil and Gas Royalty Interests	Oil and Gas Royalty Interests As of June 30, 2022 and December 31, 2021, we owned the following oil and gas royalty interests (in thousands): Net Book Value June 30, December 31, 1/16th nonparticipating perpetual royalty interests $ — $ — 1/128th nonparticipating perpetual royalty interests — — Royalty interests acquired 47,928 46,266 Total royalty interests, gross 47,928 46,266 Less: accumulated depletion (2,345) (1,876) Total royalty interests, net $ 45,583 $ 44,390 Acquisition For the six months ended June 30, 2022, we acquired oil and gas royalty interests in 92 net royalty acres (normalized to 1/8th) for an aggregate purchase price of approximately $1.7 million. There were no oil and gas royalty interest transactions for the six months ended June 30, 2021. Depletion expense was $0.2 million and $0.2 million for the three months ended June 30, 2022 and 2021, respectively. Depletion expense was $0.5 million and $0.4 million for the six months ended June 30, 2022 and 2021, respectively.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation Incentive Plan for Employees As of June 30, 2022, the Company has issued RSAs, RSUs and PSUs under the Texas Pacific Land Corporation 2021 Incentive Plan (the “2021 Plan”) to certain employees. The maximum aggregate number of shares of the Company’s common stock, par value $0.01 per share (“Common Stock”) that may be issued under the 2021 Plan is 75,000 shares and, as of June 30, 2022, 65,452 shares of Common Stock remained available under the 2021 Plan for future grants. Currently, all RSAs, RSUs, and PSUs granted under the 2021 Plan are entitled to receive dividends (for RSAs and RSUs, which are accrued and distributed to award recipients upon vesting) or have dividend equivalent rights. Dividends and dividend equivalent rights are subject to the same vesting conditions as the awards to which they relate and are forfeitable if the related awards are forfeited. The Company utilizes the closing stock price on the date of grant to determine the fair value of RSAs, RSUs and PSUs with a performance condition. For PSUs with a market condition, the Company utilizes a Monte Carlo simulation model to determine grant date fair value per share. The following table summarizes activity related to RSAs and RSUs for the six months ended June 30, 2022: Restricted Stock Awards Restricted Stock Units Number of RSAs Grant-Date Fair Value per Share Number of RSUs Grant-Date Fair Value per Share Outstanding at December 31, 2021 (1) 3,330 $ 1,252 — $ — Granted (2) — — 3,824 1,105 Vested — — — — Cancelled and forfeited — — — — Outstanding at June 30, 2022 3,330 $ 1,252 3,824 $ 1,105 (1) RSAs were granted on December 29, 2021 with 1,993 shares vesting on December 29, 2022 and 1,337 shares vesting on December 29, 2023. (2) These time-based awards were granted on February 11, 2022, to certain employees and vest in one-third increments over a three-year period. The following table summarizes activity related to PSUs for the six months ended June 30, 2022: Performance Stock Units Number of PSUs Weighted-Average Grant-Date Fair Value per Share Outstanding at December 31, 2021 — $ — Granted (1) 2,394 1,355 Vested — — Cancelled and forfeited — — Outstanding at June 30, 2022 2,394 $ 1,355 (1) Includes 1,197 RTSR (as defined below) PSUs with a grant date fair value of $1,605 per share and 1,197 FCF (as defined below) PSUs with a grant date fair value of $1,105 per share. On February 11, 2022, the Company granted 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 (“FCF”) over the three-year vesting period. As the RTSR PSU is a market-based award, its grant date fair value was determined using a Monte Carlo simulation model that uses the same input assumptions as the Black-Scholes model to determine the expected potential ranking of the Company against the XOP Index, i.e. the probability of satisfying the market condition defined in the award. Expected volatility in the model was estimated based on the volatility of historical stock prices over a period matching the expected term of the award. The risk-free interest rate was based on U.S. Treasury yield constant maturities for a term matching the expected term of the award. Equity Plan for Non-Employee Directors As of June 30, 2022, the Company had granted 699 RSAs to directors of the Company under 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 June 30, 2022, 9,301 shares of Common Stock remained available under the 2021 Directors Plan for future grants. Currently, all RSAs granted under the 2021 Directors Plan are entitled to receive dividends, which are accrued and distributed to award recipients upon vesting. Dividends are subject to the same vesting conditions as the awards to which they relate and are forfeitable if the related awards are forfeited. The Company utilizes the closing stock price on the date of grant to determine the fair value of the RSAs. The following table summarizes activity related to the RSAs under the 2021 Directors Plan for the six months ended June 30, 2022: Restricted Stock Awards Number of RSAs Grant-Date Fair Value per Share Outstanding at December 31, 2021 — $ — Granted 784 1,277 Vested — — Cancelled and forfeited (85) 1,249 Outstanding at June 30, 2022 (1) 699 $ 1,281 (1) On January 1, 2022, the Company granted 680 shares of restricted stock to directors. During the six months ended June 30, 2022, 85 shares were forfeited resulting from the departure of a director in March 2022, and an additional 104 shares of restricted stock were granted to new directors on April 15, 2022. The shares will vest on the first anniversary of the award. Share-Based Compensation Expense The following table summarizes our share-based compensation expense by line item in the condensed consolidated statements of income (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Salaries and related employee expenses (employee awards) $ 1,760 $ — $ 3,079 $ — General and administrative expenses (director awards) 230 — 416 — Total share-based compensation expense (1) $ 1,990 $ — $ 3,495 $ — (1) The Company recognized a tax benefit of $0.4 million and $0.7 million related to share-based compensation for the three and six months ended June 30, 2022, respectively. As of June 30, 2022, there was $9.0 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under existing share-based plans expected to be recognized over a weighted average period of 1.5 years.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The calculation of our effective tax rate is as follows for the three and six months ended June 30, 2022 and 2021 (in thousands, except percentages): Three Months Ended Six Months Ended 2022 2021 2022 2021 Income before income taxes $ 152,338 $ 71,676 $ 276,727 $ 133,703 Income tax expense $ 33,444 $ 14,630 $ 59,933 $ 26,605 Effective tax rate 22.0 % 20.4 % 21.7 % 19.9 % For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions, and other items.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per ShareBasic earnings per share (“EPS”) is computed based on the weighted average number of shares outstanding during the period. Diluted EPS is computed based upon the weighted average number of shares outstanding during the period plus unvested restricted stock and other unvested awards granted pursuant to our incentive and equity compensation plans. The computation of diluted EPS reflects the potential dilution that could occur if all outstanding awards under the incentive and equity compensation plans 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 number of dilutive securities is computed using the treasury stock method. The following table sets forth the computation of EPS for the three and six months ended June 30, 2022 and 2021 (in thousands, except number of shares and per share data): Three Months Ended Six Months Ended 2022 2021 2022 2021 Net income $ 118,894 $ 57,046 $ 216,794 $ 107,098 Basic EPS: Weighted average shares outstanding for basic EPS 7,733,730 7,755,886 7,737,527 7,756,020 Basic EPS $ 15.37 $ 7.36 $ 28.02 $ 13.81 Diluted EPS: Weighted average shares outstanding for basic EPS 7,733,730 7,755,886 7,737,527 7,756,020 Effect of dilutive securities: Incentive and equity compensation plans 3,382 — 2,333 — Weighted average shares outstanding for diluted EPS 7,737,112 7,755,886 7,739,859 7,756,020 Diluted EPS $ 15.37 $ 7.36 $ 28.01 $ 13.81

Commitments

Commitments	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments	CommitmentsManagement 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 June 30, 2022.Prior to January 1, 2022, ad valorem taxes with respect to our historical royalty interests were paid directly by certain third parties pursuant to an existing arrangement. Since the completion of our Corporate Reorganization, we have received notice from one such third party that they no longer intend to pay the ad valorem taxes related to such historical royalty interests. As of June 30, 2022, the Company has recorded an accrual of approximately $4.0 million for ad valorem taxes and intends to pay such taxes when they become due. While we intend to seek reimbursement from the third party following payment of such taxes, we are unable to determine the likelihood of such reimbursement, and accordingly, no loss recovery receivable has been recorded as of June 30, 2022.

Changes in Equity

Changes in Equity	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Changes in Equity	Changes in Equity The following tables present changes in our equity for the six months ended June 30, 2022 and 2021 (in thousands, except shares and per share amounts): Common Stock Treasury Stock Additional Paid-in Capital Accum. Retained Earnings Total Shares Amount Shares Amount For the six months ended June 30, 2022: Balances as of December 31, 2021 7,744,695 $ 78 11,461 $ (15,417) $ 28 $ (1,007) $ 668,029 $ 651,711 Net income — — — — — — 97,900 97,900 Dividends paid — $3.00 per share of common stock — — — — — — (23,224) (23,224) Share-based compensation, net of forfeitures 595 — (595) 800 1,477 — (796) 1,481 Periodic pension costs, net of income taxes of $2 — — — — — 8 — 8 Balances as of March 31, 2022 7,745,290 78 10,866 (14,617) 1,505 (999) 741,909 727,876 Net income — — — — — — 118,894 118,894 Dividends paid — $3.00 per share of common stock — — — — — — (23,188) (23,188) Special dividends paid — $20.00 per share of common stock — — — — — — (154,586) (154,586) Share-based compensation, net of forfeitures 104 — (104) 140 1,851 — (180) 1,811 Repurchases of common stock (17,478) — 17,478 (25,534) — — — (25,534) Periodic pension costs, net of income taxes of $2 — — — — — 8 — 8 Balances as of June 30, 2022 7,727,916 $ 78 28,240 $ (40,011) $ 3,356 $ (991) $ 682,849 $ 645,281 Sub-share Certificates Common Stock Treasury Stock Accum. Retained Earnings Net Proceeds Total Shares Shares Amount Shares Amount For the six months ended June 30, 2021: Balances as of December 31, 2020 7,756,156 — $ — $ — $ — $ (2,693) $ — $ 487,877 $ 485,184 Net income — — — — — — 50,052 — 50,052 Dividends paid — $2.75 per share of common stock — — — — — — (21,329) — (21,329) Conversion of Sub-shares into shares of common stock (7,756,156) 7,756,156 78 — — — 487,799 (487,877) — Periodic pension costs, net of income taxes of $8 — — — — — 28 — — 28 Balances as of March 31, 2021 — 7,756,156 78 — — (2,665) 516,522 — 513,935 Net income — — — — — — 57,046 — 57,046 Dividends paid — $2.75 per share of common stock — — — — — — (21,329) — (21,329) Repurchases of common stock — (1,633) — 1,633 (2,504) — — — (2,504) Periodic pension costs, net of income taxes of $8 — — — — — 29 — — 29 Balances as of June 30, 2021 — 7,754,523 $ 78 1,633 $ (2,504) $ (2,636) $ 552,239 $ — $ 547,177 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. 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-share certificates (“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 a corporation with its Common Stock listed under the symbol “TPL” on the New York Stock Exchange. Stock Repurchase Program On March 11, 2022, our board of directors approved a stock repurchase program to purchase up to an aggregate of $100 million of shares of our outstanding Common Stock during 2022. In connection with the stock repurchase program, the Company entered into a Rule 10b5-1 trading plan (the “Trading Plan”) that generally permits the Company to repurchase shares at times when it might otherwise be prevented from doing so under securities laws. Stock repurchases under the Trading Plan began April 18, 2022. The stock repurchase program expires on December 31, 2022. For the six months ended June 30, 2022, we repurchased 17,478 shares at an average per share amount of $1,461.

Business Segment Reporting

Business Segment Reporting	6 Months Ended
	Jun. 30, 2022
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 for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues: Land and resource management $ 133,385 $ 67,241 $ 246,732 $ 125,031 Water services and operations 42,885 28,691 76,873 55,056 Total consolidated revenues $ 176,270 $ 95,932 $ 323,605 $ 180,087 Net income: Land and resource management $ 96,074 $ 45,443 $ 177,230 $ 84,956 Water services and operations 22,820 11,603 39,564 22,142 Total consolidated net income $ 118,894 $ 57,046 $ 216,794 $ 107,098 Capital expenditures: Land and resource management $ 103 $ 13 $ 225 $ 13 Water services and operations 7,239 2,161 10,122 4,899 Total capital expenditures $ 7,342 $ 2,174 $ 10,347 $ 4,912 Depreciation, depletion and amortization: Land and resource management $ 529 $ 442 $ 1,065 $ 936 Water services and operations 3,651 3,416 7,241 6,760 Total depreciation, depletion and amortization $ 4,180 $ 3,858 $ 8,306 $ 7,696 The following table presents total assets and property, plant and equipment, net by segment as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, Assets: Land and resource management $ 618,716 $ 635,338 Water services and operations 145,992 128,726 Total consolidated assets $ 764,708 $ 764,064 Property, plant and equipment, net: Land and resource management $ 6,355 $ 6,639 Water services and operations 77,089 73,083 Total consolidated property, plant and equipment, net $ 83,444 $ 79,722

Oil and Gas Producing Activitie

Oil and Gas Producing Activities	6 Months Ended
	Jun. 30, 2022
Extractive Industries [Abstract]
Oil and Gas Producing Activities	Oil and Gas Producing Activities 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 three months ended June 30, 2022 and 2021, our share of oil and gas produced was approximately 19.8 and 16.4 thousand Boe per day, respectively. For the six months ended June 30, 2022 and June 30, 2021, our share of oil and gas produced was approximately 20.3 and 16.4 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 574 and 452 DUC wells subject to our royalty interest as of June 30, 2022 and December 31, 2021, respectively.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
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: Dividends Declared

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. The condensed consolidated financial statements herein include all adjustments which are, in the opinion of management, necessary to fairly state the financial position of the Company as of June 30, 2022 and the results of its operations for the three and six months ended June 30, 2022 and 2021, respectively, and its cash flows for the six months ended June 30, 2022 and 2021, respectively. Such adjustments are of a normal nature and all intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, and accordingly these interim financial statements and footnotes should be read in conjunction with the audited financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2021. The results for the interim periods shown in this report are not necessarily indicative of future financial results.
Segment Reporting	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.
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.
Compensation	Compensation The Company utilizes the closing stock price on the date of grant to determine the fair value of service-vesting awards, which for the Company includes restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) with a performance condition. For PSUs with a market condition, grant date fair value is determined using an advanced option-pricing model. Unvested awards are entitled to dividends or dividend equivalents which are accrued and distributed to award recipients at the time such awards vest. Dividends are forfeitable if the related award is forfeited. For RSAs, RSUs and PSUs with performance conditions, forfeitures are recognized in the period in which they occur. For PSU awards with market conditions, forfeitures are only recognized if the award recipient does not render the required service during the measurement period. Compensation expense for RSUs and RSAs is recognized in the financial statements over the awards’ vesting periods using the graded-vesting method. Compensation expense for PSU awards with performance conditions is recognized ratably over the measurement period at such time as the awards are probable and estimable. Compensation expense for PSU awards with market conditions is recognized ratably over the measurement period whether the market condition is satisfied or not if the service for the award is rendered. Share-based compensation is reported on the condensed consolidated statements of income and total comprehensive income as a component of salaries and related employee expenses for employee awards and in general and administrative expenses for director awards.
Recently Adopted Accounting Guidance and Recently Issued Accounting Pronouncements	Recently Adopted Accounting Guidance In July 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2021-05, “ Leases (Topic 842) Lessors – Certain Leases with Variable Lease Payments .” Under the ASU, a lessor classifies 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 adoption of this guidance effective January 1, 2022, had no impact on our condensed consolidated financial statements and disclosures.

Real Estate Activity (Tables)

Real Estate Activity (Tables)	6 Months Ended
	Jun. 30, 2022
Real Estate [Abstract]
Schedule of Real Estate Activity	As of June 30, 2022 and December 31, 2021, TPL owned the following land and real estate (in thousands, except number of acres): June 30, December 31, Number of Acres Net Book Value Number of Acres Net Book Value Land (surface rights) (1) 823,445 $ — 823,452 $ — Real estate acquired 57,146 109,083 57,129 109,071 Total real estate situated in Texas 880,591 $ 109,083 880,581 $ 109,071 (1) Real estate assigned through the Declaration of Trust.

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment, net consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, Property, plant and equipment, at cost: Water service-related assets $ 117,967 $ 108,732 Furniture, fixtures and equipment 9,384 9,071 Other 598 598 Total property, plant and equipment, at cost 127,949 118,401 Less: accumulated depreciation (44,505) (38,679) Property, plant and equipment, net $ 83,444 $ 79,722

Oil and Gas Royalty Interests (

Oil and Gas Royalty Interests (Tables)	6 Months Ended
	Jun. 30, 2022
Real Estate [Abstract]
Schedule of Royalty Interests	As of June 30, 2022 and December 31, 2021, we owned the following oil and gas royalty interests (in thousands): Net Book Value June 30, December 31, 1/16th nonparticipating perpetual royalty interests $ — $ — 1/128th nonparticipating perpetual royalty interests — — Royalty interests acquired 47,928 46,266 Total royalty interests, gross 47,928 46,266 Less: accumulated depletion (2,345) (1,876) Total royalty interests, net $ 45,583 $ 44,390

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Restricted Stock Awards and Units Activity	The following table summarizes activity related to RSAs and RSUs for the six months ended June 30, 2022: Restricted Stock Awards Restricted Stock Units Number of RSAs Grant-Date Fair Value per Share Number of RSUs Grant-Date Fair Value per Share Outstanding at December 31, 2021 (1) 3,330 $ 1,252 — $ — Granted (2) — — 3,824 1,105 Vested — — — — Cancelled and forfeited — — — — Outstanding at June 30, 2022 3,330 $ 1,252 3,824 $ 1,105 (1) RSAs were granted on December 29, 2021 with 1,993 shares vesting on December 29, 2022 and 1,337 shares vesting on December 29, 2023. (2) These time-based awards were granted on February 11, 2022, to certain employees and vest in one-third increments over a three-year period. The following table summarizes activity related to the RSAs under the 2021 Directors Plan for the six months ended June 30, 2022: Restricted Stock Awards Number of RSAs Grant-Date Fair Value per Share Outstanding at December 31, 2021 — $ — Granted 784 1,277 Vested — — Cancelled and forfeited (85) 1,249 Outstanding at June 30, 2022 (1) 699 $ 1,281
Schedule of Performance Share Units Activity	The following table summarizes activity related to PSUs for the six months ended June 30, 2022: Performance Stock Units Number of PSUs Weighted-Average Grant-Date Fair Value per Share Outstanding at December 31, 2021 — $ — Granted (1) 2,394 1,355 Vested — — Cancelled and forfeited — — Outstanding at June 30, 2022 2,394 $ 1,355 (1) Includes 1,197 RTSR (as defined below) PSUs with a grant date fair value of $1,605 per share and 1,197 FCF (as defined below) PSUs with a grant date fair value of $1,105 per share.
Schedule of Share-Based Compensation Expense	The following table summarizes our share-based compensation expense by line item in the condensed consolidated statements of income (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Salaries and related employee expenses (employee awards) $ 1,760 $ — $ 3,079 $ — General and administrative expenses (director awards) 230 — 416 — Total share-based compensation expense (1) $ 1,990 $ — $ 3,495 $ — (1) The Company recognized a tax benefit of $0.4 million and $0.7 million related to share-based compensation for the three and six months ended June 30, 2022, respectively.

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The calculation of our effective tax rate is as follows for the three and six months ended June 30, 2022 and 2021 (in thousands, except percentages): Three Months Ended Six Months Ended 2022 2021 2022 2021 Income before income taxes $ 152,338 $ 71,676 $ 276,727 $ 133,703 Income tax expense $ 33,444 $ 14,630 $ 59,933 $ 26,605 Effective tax rate 22.0 % 20.4 % 21.7 % 19.9 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of EPS for the three and six months ended June 30, 2022 and 2021 (in thousands, except number of shares and per share data): Three Months Ended Six Months Ended 2022 2021 2022 2021 Net income $ 118,894 $ 57,046 $ 216,794 $ 107,098 Basic EPS: Weighted average shares outstanding for basic EPS 7,733,730 7,755,886 7,737,527 7,756,020 Basic EPS $ 15.37 $ 7.36 $ 28.02 $ 13.81 Diluted EPS: Weighted average shares outstanding for basic EPS 7,733,730 7,755,886 7,737,527 7,756,020 Effect of dilutive securities: Incentive and equity compensation plans 3,382 — 2,333 — Weighted average shares outstanding for diluted EPS 7,737,112 7,755,886 7,739,859 7,756,020 Diluted EPS $ 15.37 $ 7.36 $ 28.01 $ 13.81

Changes in Equity (Tables)

Changes in Equity (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Schedule of Stockholders Equity	The following tables present changes in our equity for the six months ended June 30, 2022 and 2021 (in thousands, except shares and per share amounts): Common Stock Treasury Stock Additional Paid-in Capital Accum. Retained Earnings Total Shares Amount Shares Amount For the six months ended June 30, 2022: Balances as of December 31, 2021 7,744,695 $ 78 11,461 $ (15,417) $ 28 $ (1,007) $ 668,029 $ 651,711 Net income — — — — — — 97,900 97,900 Dividends paid — $3.00 per share of common stock — — — — — — (23,224) (23,224) Share-based compensation, net of forfeitures 595 — (595) 800 1,477 — (796) 1,481 Periodic pension costs, net of income taxes of $2 — — — — — 8 — 8 Balances as of March 31, 2022 7,745,290 78 10,866 (14,617) 1,505 (999) 741,909 727,876 Net income — — — — — — 118,894 118,894 Dividends paid — $3.00 per share of common stock — — — — — — (23,188) (23,188) Special dividends paid — $20.00 per share of common stock — — — — — — (154,586) (154,586) Share-based compensation, net of forfeitures 104 — (104) 140 1,851 — (180) 1,811 Repurchases of common stock (17,478) — 17,478 (25,534) — — — (25,534) Periodic pension costs, net of income taxes of $2 — — — — — 8 — 8 Balances as of June 30, 2022 7,727,916 $ 78 28,240 $ (40,011) $ 3,356 $ (991) $ 682,849 $ 645,281 Sub-share Certificates Common Stock Treasury Stock Accum. Retained Earnings Net Proceeds Total Shares Shares Amount Shares Amount For the six months ended June 30, 2021: Balances as of December 31, 2020 7,756,156 — $ — $ — $ — $ (2,693) $ — $ 487,877 $ 485,184 Net income — — — — — — 50,052 — 50,052 Dividends paid — $2.75 per share of common stock — — — — — — (21,329) — (21,329) Conversion of Sub-shares into shares of common stock (7,756,156) 7,756,156 78 — — — 487,799 (487,877) — Periodic pension costs, net of income taxes of $8 — — — — — 28 — — 28 Balances as of March 31, 2021 — 7,756,156 78 — — (2,665) 516,522 — 513,935 Net income — — — — — — 57,046 — 57,046 Dividends paid — $2.75 per share of common stock — — — — — — (21,329) — (21,329) Repurchases of common stock — (1,633) — 1,633 (2,504) — — — (2,504) Periodic pension costs, net of income taxes of $8 — — — — — 29 — — 29 Balances as of June 30, 2021 — 7,754,523 $ 78 1,633 $ (2,504) $ (2,636) $ 552,239 $ — $ 547,177

Business Segment Reporting (Tab

Business Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Schedule of Segment Financial Results	Segment financial results were as follows for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues: Land and resource management $ 133,385 $ 67,241 $ 246,732 $ 125,031 Water services and operations 42,885 28,691 76,873 55,056 Total consolidated revenues $ 176,270 $ 95,932 $ 323,605 $ 180,087 Net income: Land and resource management $ 96,074 $ 45,443 $ 177,230 $ 84,956 Water services and operations 22,820 11,603 39,564 22,142 Total consolidated net income $ 118,894 $ 57,046 $ 216,794 $ 107,098 Capital expenditures: Land and resource management $ 103 $ 13 $ 225 $ 13 Water services and operations 7,239 2,161 10,122 4,899 Total capital expenditures $ 7,342 $ 2,174 $ 10,347 $ 4,912 Depreciation, depletion and amortization: Land and resource management $ 529 $ 442 $ 1,065 $ 936 Water services and operations 3,651 3,416 7,241 6,760 Total depreciation, depletion and amortization $ 4,180 $ 3,858 $ 8,306 $ 7,696
Schedule of Total Assets And Property, Plant and Equipment	The following table presents total assets and property, plant and equipment, net by segment as of June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, Assets: Land and resource management $ 618,716 $ 635,338 Water services and operations 145,992 128,726 Total consolidated assets $ 764,708 $ 764,064 Property, plant and equipment, net: Land and resource management $ 6,355 $ 6,639 Water services and operations 77,089 73,083 Total consolidated property, plant and equipment, net $ 83,444 $ 79,722

Organization and Description _2

Organization and Description of Business Segments (Details) a in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022 a segment	Jun. 30, 2021	Dec. 31, 2021
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%	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%
1/8th Net royalty acres
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Nonparticipating perpetual royalty interest rate (in percentage)	12.50%
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

Real Estate Activity - Schedule

Real Estate Activity - Schedule of Land and Real Estate Ownership (Details) $ in Thousands	Jun. 30, 2022 USD ($) a	Dec. 31, 2021 USD ($) a
Number of Acres
Land (surface rights) (acre) | a	823,445	823,452
Real estate acquired (acre) | a	57,146	57,129
Total Real Estate Situated in Texas (acre) | a	880,591	880,581
Net Book Value
Land (surface rights) | $	$ 0	$ 0
Real estate acquired | $	109,083	109,071
Total real estate situated in Texas (in USD) | $	$ 109,083	$ 109,071

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 127,949		$ 127,949		$ 118,401
Less: accumulated depreciation	(44,505)		(44,505)		(38,679)
Property, plant and equipment, net	83,444		83,444		79,722
Depreciation expense	3,900	$ 3,700	7,700	$ 7,200
Water service-related assets
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	117,967		117,967		108,732
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	9,384		9,384		9,071
Other
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 598		$ 598		$ 598

Oil and Gas Royalty Interests_2

Oil and Gas Royalty Interests (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Net Book Value
Royalty interests acquired	$ 47,928	$ 46,266
Total royalty interests, gross	47,928	46,266
Less: accumulated depletion	(2,345)	(1,876)
Total royalty interests, net	45,583	44,390
1/16th nonparticipating perpetual royalty interests
Net Book Value
1/16th nonparticipating perpetual royalty interest	0	0
1/128th nonparticipating perpetual royalty interests
Net Book Value
1/128th nonparticipating perpetual royalty interest	$ 0	$ 0

Oil and Gas Royalty Interests -

Oil and Gas Royalty Interests - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) a	Jun. 30, 2021 USD ($) a	Jun. 30, 2022 USD ($) a	Jun. 30, 2021 USD ($) a
Real Estate Properties [Line Items]
Acquisition of royalty interests			$ 1,662	$ 0
Depletion expense	$ 200	$ 200	$ 500	$ 400
Additional real estate acquisitions
Real Estate Properties [Line Items]
Net royalty interests (in acres) | a	92	0	92	0
Acquisition of royalty interests			$ 1,700

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions				6 Months Ended
	Feb. 11, 2022	Jan. 01, 2022	Dec. 29, 2021	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share)				$ 0.01	$ 0.01
Total unrecognized compensation cost				$ 9
Total unrecognized compensation cost, period for recognition				1 year 6 months
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grants (in shares)				65,452
Common Stock | 2021 Plan | Maximum | Employee
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 available for future grants (in shares)				9,301
Common Stock | 2021 Directors Plan | Maximum | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				10,000
Restricted Stock Units (RSUs) | 2021 Plan | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				3,824
Granted (in dollars per share)				$ 1,105
Restricted stock units (in units)				3,824	0
Cancelled and forfeited (in shares)				0
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				2,394
Granted (in dollars per share)				$ 1,355
Award vesting period	3 years
PSU conversion ration (in shares)	1
Restricted stock units (in units)				2,394	0
Cancelled and forfeited (in shares)				0
Performance Shares | Shares vesting December 29, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	50%
Performance Shares | Shares vesting December 29, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	50%
Restricted Stock Awards | Shares vesting December 29, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)			1,993
Restricted Stock Awards | Shares vesting December 29, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)			1,337
Restricted Stock Awards | 2021 Plan | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				0
Granted (in dollars per share)				$ 0
Restricted stock units (in units)				3,330	3,330
Cancelled and forfeited (in shares)				0
Restricted Stock Awards | 2021 Directors Plan | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		680		784
Granted (in dollars per share)				$ 1,277
Restricted stock units (in units)				699	0
Cancelled and forfeited (in shares)				(85)
Equity Securities
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocation of expected return on plan assets (in percentage)				33.33333%

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Transactions (Details) - $ / shares			6 Months Ended
	Apr. 15, 2022	Jan. 01, 2022	Jun. 30, 2022	Dec. 31, 2021
Restricted Stock Awards | Employee | 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Non-vested, beginning of period (in shares)		3,330	3,330
Granted (in shares)			0
Vested (in shares)			0
Cancelled and forfeited (in shares)			0
Non-vested, at end of period (in shares)			3,330
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested, beginning of period (in dollars per share)			$ 1,252	$ 1,252
Granted (in dollars per share)			0
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
Restricted Stock Awards | Director | 2021 Directors Plan
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Non-vested, beginning of period (in shares)		0	0
Granted (in shares)		680	784
Vested (in shares)			0
Cancelled and forfeited (in shares)			(85)
Non-vested, at end of period (in shares)			699
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested, beginning of period (in dollars per share)			$ 1,281	0
Granted (in dollars per share)			1,277
Vested (in dollars per share)			0
Cancelled and forfeited (in dollars per share)			1,249
Non-vested, at end of period (in dollars per share)			$ 1,281
Restricted Stock Units (RSUs) | Employee | 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Non-vested, beginning of period (in shares)		0	0
Granted (in shares)			3,824
Vested (in shares)			0
Cancelled and forfeited (in shares)			0
Non-vested, at end of period (in shares)			3,824
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested, beginning of period (in dollars per share)			$ 1,105	$ 0
Granted (in dollars per share)			1,105
Vested (in dollars per share)			0
Cancelled and forfeited (in dollars per share)			0
Non-vested, at end of period (in dollars per share)			$ 1,105
Restricted Stock, Departure Of Director or Restricted Stock, New Director | Director | 2021 Directors Plan
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Granted (in shares)	104

Share-Based Compensation - Perf

Share-Based Compensation - Performance Share Units (Details) - Performance Shares - $ / shares	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Non-vested, beginning of period (in shares)	0
Granted (in shares)	2,394
Vested (in shares)	0
Cancelled and forfeited (in shares)	0
Non-vested, at end of period (in shares)	2,394
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested, beginning of period (in dollars per share)	$ 1,355	$ 0
Granted (in dollars per share)	1,355
Vested (in dollars per share)	0
Cancelled and forfeited (in dollars per share)	0
Non-vested, at end of period (in dollars per share)	$ 1,355
Relative total stockholder return
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Granted (in shares)	1,197
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested, beginning of period (in dollars per share)	$ 1,605
Non-vested, at end of period (in dollars per share)	$ 1,605
Free cash flow
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Granted (in shares)	1,197
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested, beginning of period (in dollars per share)	$ 1,105
Non-vested, at end of period (in dollars per share)	$ 1,105

Share-Based Compensation - Shar

Share-Based Compensation - Share-Based Compensation - (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 1,990	$ 0	$ 3,495	$ 0
Tax benefit related to share-based compensation	400		700
Salaries and related employee expenses (employee awards)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	1,760	0	3,079	0
General and administrative expenses (director awards)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 230	$ 0	$ 416	$ 0

Income Taxes - Calculation of E

Income Taxes - Calculation of Effective Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income before income taxes	$ 152,338	$ 71,676	$ 276,727	$ 133,703
Income tax expense	$ 33,444	$ 14,630	$ 59,933	$ 26,605
Effective tax rate (in percent)	22%	20.40%	21.70%	19.90%

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 118,894	$ 97,900	$ 57,046	$ 50,052	$ 216,794	$ 107,098
Basic EPS:
Weighted average shares outstanding for basic EPS (in shares)	7,733,730		7,755,886		7,737,527	7,756,020
Basic earnings per share (in dollars per share)	$ 15.37		$ 7.36		$ 28.02	$ 13.81
Diluted EPS:
Weighted average shares outstanding for basic EPS (in shares)	7,733,730		7,755,886		7,737,527	7,756,020
Incentive and equity compensation plans (in shares)	3,382		0		2,333	0
Weighted average shares outstanding for diluted EPS (in shares)	7,737,112		7,755,886		7,739,859	7,756,020
Diluted earnings per share (in dollars per share)	$ 15.37		$ 7.36		$ 28.01	$ 13.81

Commitments - Additional Inform

Commitments - Additional Information (Details) $ in Millions	Jun. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accrual for ad valorem taxes	$ 4

Changes in Equity - Changes in

Changes in Equity - Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				6 Months Ended
	May 03, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		$ 727,876	$ 651,711	$ 513,935	$ 485,184	$ 651,711	$ 485,184
Beginning balance, treasury stock (in shares)			11,461			11,461
Net income		118,894	$ 97,900	57,046	50,052	$ 216,794	107,098
Share-based compensation, net of forfeitures		1,811	1,481
Conversion of Sub-shares into shares of common stock					0
Periodic pension costs, net of income taxes		8	8	29	28	16	57
Repurchases of common stock		(25,534)		(2,504)
Ending balance		$ 645,281	$ 727,876	$ 547,177	$ 513,935	$ 645,281	$ 547,177
Ending balance, treasury stock (in shares)		28,240				28,240
Dividend paid per common stock (in USD per share)		$ 23	$ 3	$ 2.75	$ 2.75	$ 26	$ 5.50
Other comprehensive income - periodic pension costs		$ 2	$ 2	$ 8	$ 8	$ 4	$ 15
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		7,745,290	7,744,695	7,756,156	0	7,744,695	0
Beginning balance		$ 78	$ 78	$ 78	$ 0	$ 78	$ 0
Share-based compensation, net of forfeitures (in shares)		104	595
Conversion of sub-shares into shares of common stock (in shares)					7,756,156
Conversion of Sub-shares into shares of common stock					$ 78
Repurchases of common stock (in shares)		(17,478)		(1,633)
Ending balance (in shares)		7,727,916	7,745,290	7,754,523	7,756,156	7,727,916	7,754,523
Ending balance		$ 78	$ 78	$ 78	$ 78	$ 78	$ 78
Sub-share Certificates
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)				0	7,756,156		7,756,156
Conversion of sub-shares into shares of common stock (in shares)					7,756,156
Ending balance (in shares)				0	0		0
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		$ (14,617)	$ (15,417)	$ 0	$ 0	$ (15,417)	$ 0
Beginning balance, treasury stock (in shares)		10,866	11,461	0	0	11,461	0
Share-based compensation, net of forfeitures (in shares)		(104)	(595)
Share-based compensation, net of forfeitures		$ 140	$ 800
Repurchases of common stock (in shares)		17,478		1,633
Repurchases of common stock		$ (25,534)		$ (2,504)
Ending balance		$ (40,011)	$ (14,617)	$ (2,504)	$ 0	$ (40,011)	$ (2,504)
Ending balance, treasury stock (in shares)		28,240	10,866	1,633	0	28,240	1,633
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		$ 1,505	$ 28			$ 28
Share-based compensation, net of forfeitures		1,851	1,477
Ending balance		3,356	1,505			3,356
Accum. Other Comp. Inc/(Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		(999)	(1,007)	$ (2,665)	$ (2,693)	(1,007)	$ (2,693)
Periodic pension costs, net of income taxes		8	8	29	28
Ending balance		(991)	(999)	(2,636)	(2,665)	(991)	(2,636)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		741,909	668,029	516,522	0	668,029	0
Net income		118,894	97,900	57,046	50,052
Share-based compensation, net of forfeitures		(180)	(796)
Conversion of Sub-shares into shares of common stock					487,799
Ending balance		682,849	741,909	552,239	516,522	$ 682,849	552,239
Net Proceeds From All Sources
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance				0	487,877		487,877
Conversion of Sub-shares into shares of common stock					(487,877)
Ending balance				0	0		$ 0
Dividend Paid
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid		$ (23,188)	(23,224)	$ (21,329)	(21,329)
Dividend paid per common stock (in USD per share)		$ 3		$ 2.75
Dividend Paid | Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid		$ (23,188)	$ (23,224)	$ (21,329)	$ (21,329)
Special Dividend Paid
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid		(154,586)
Dividend paid per common stock (in USD per share)	$ 20
Special Dividend Paid | Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid		$ (154,586)

Changes in Equity - Narrative (

Changes in Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2022	Mar. 11, 2022
Equity [Abstract]
Shares authorized to be repurchased		$ 100
Treasury Stock, Shares, Acquired	17,478
Average cost per share of repurchased shares (in USD per share)	$ 1,461

Business Segment Reporting - Na

Business Segment Reporting - Narrative (Details) a in Thousands	Jun. 30, 2022 a
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	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Total consolidated revenues	$ 176,270		$ 95,932		$ 323,605	$ 180,087
Net income	118,894	$ 97,900	57,046	$ 50,052	216,794	107,098
Total capital expenditures	7,342		2,174		10,347	4,912
Depreciation, depletion and amortization	4,180		3,858		8,306	7,696
Land and resource management
Segment Reporting Information [Line Items]
Total consolidated revenues	133,385		67,241		246,732	125,031
Net income	96,074		45,443		177,230	84,956
Total capital expenditures	103		13		225	13
Depreciation, depletion and amortization	529		442		1,065	936
Water services and operations
Segment Reporting Information [Line Items]
Total consolidated revenues	42,885		28,691		76,873	55,056
Net income	22,820		11,603		39,564	22,142
Total capital expenditures	7,239		2,161		10,122	4,899
Depreciation, depletion and amortization	$ 3,651		$ 3,416		$ 7,241	$ 6,760

Business Segment Reporting - As

Business Segment Reporting - Assets and Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total consolidated assets	$ 764,708	$ 764,064
Total consolidated property, plant and equipment, net	83,444	79,722
Land and resource management
Segment Reporting Information [Line Items]
Total consolidated assets	618,716	635,338
Total consolidated property, plant and equipment, net	6,355	6,639
Water services and operations
Segment Reporting Information [Line Items]
Total consolidated assets	145,992	128,726
Total consolidated property, plant and equipment, net	$ 77,089	$ 73,083

Oil and Gas Producing Activit_2

Oil and Gas Producing Activities (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 Boe well	Jun. 30, 2021 Boe	Jun. 30, 2022 Boe well	Jun. 30, 2021 Boe	Dec. 31, 2021 well
Extractive Industries [Abstract]
Share of oil and gas produced in thousands per day | Boe	19,800	16,400	20,300	16,400
Number of oil and gas wells | well	574		574		452

Subsequent Events (Details)

Subsequent Events (Details)	Aug. 02, 2022 $ / shares
Dividend declared | Subsequent event
Subsequent Event [Line Items]
Annual cash dividend (in dollars per share)	$ 3