Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document type | 10-Q | |
Document quarterly report | true | |
Document period end date | Sep. 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 $.01 per share) | |
Trading symbol | TPL | |
Security exchange name | NYSE | |
Entity current reporting status | Yes | |
Entity interactive data current | Yes | |
Entity filer category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity shell company | false | |
Entity common stock, shares outstanding | 7,704,496 | |
Entity central index key | 0001811074 | |
Current fiscal year end date | --12-31 | |
Document fiscal year focus | 2022 | |
Document fiscal period focus | Q3 | |
Amendment flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 446,588 | $ 428,242 |
Accounts receivable and accrued receivables, net | 139,656 | 95,217 |
Prepaid expenses and other current assets | 2,943 | 3,054 |
Total current assets | 589,187 | 526,513 |
Real estate acquired | 109,083 | 109,071 |
Property, plant and equipment, net | 81,556 | 79,722 |
Royalty interests acquired, net | 45,331 | 44,390 |
Other assets | 3,817 | 4,368 |
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned: | ||
Total assets | 828,974 | 764,064 |
LIABILITIES AND EQUITY | ||
Accounts payable and accrued expenses | 30,726 | 18,008 |
Income taxes payable | 8,262 | 29,083 |
Unearned revenue | 4,611 | 3,809 |
Total current liabilities | 43,599 | 50,900 |
Deferred taxes payable | 38,108 | 38,948 |
Unearned revenue - noncurrent | 21,434 | 20,449 |
Accrued liabilities | 4,663 | 2,056 |
Total liabilities | 107,804 | 112,353 |
Commitments and contingencies | 0 | 0 |
Equity: | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized, none outstanding as of September 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.01 par value; 7,756,156 shares authorized and 7,708,845 and 7,744,695 outstanding as of September 30, 2022 and December 31, 2021, respectively | 78 | 78 |
Treasury stock, at cost; 47,311 and 11,461 shares as of September 30, 2022 and December 31, 2021, respectively | (72,926) | (15,417) |
Additional paid-in capital | 5,477 | 28 |
Accumulated other comprehensive loss | (983) | (1,007) |
Retained earnings | 789,524 | 668,029 |
Total equity | 721,170 | 651,711 |
Total liabilities and equity | 828,974 | 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 | 9 Months Ended | |
Sep. 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) | 7,708,845 | 7,744,695 |
Treasury stock, at cost (in shares) | 47,311 | 11,461 |
1/16th nonparticipating perpetual royalty interests | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 6.25% | |
1/128th nonparticipating perpetual royalty interests | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 0.78125% |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Total revenues | $ 191,111 | $ 123,693 | $ 514,716 | $ 303,780 |
Expenses: | ||||
Salaries and related employee expenses | 10,697 | 8,542 | 29,670 | 31,792 |
Water service-related expenses | 6,348 | 3,650 | 13,045 | 10,499 |
General and administrative expenses | 3,153 | 2,844 | 9,858 | 8,491 |
Legal and professional fees | 2,106 | 1,551 | 4,988 | 4,904 |
Ad valorem taxes | 2,835 | 0 | 6,856 | 0 |
Depreciation, depletion and amortization | 3,917 | 3,866 | 12,223 | 11,562 |
Total operating expenses | 29,056 | 20,453 | 76,640 | 67,248 |
Operating income | 162,055 | 103,240 | 438,076 | 236,532 |
Other income, net | 1,920 | 513 | 2,626 | 924 |
Income before income taxes | 163,975 | 103,753 | 440,702 | 237,456 |
Income tax expense | 34,138 | 19,916 | 94,071 | 46,521 |
Net income | 129,837 | 83,837 | 346,631 | 190,935 |
Other comprehensive income — periodic pension costs, net of income taxes for the three and nine months ended September 30, 2022 and 2021 of $3, $8, $8, and $23, respectively | 8 | 29 | 24 | 86 |
Total comprehensive income | $ 129,845 | $ 83,866 | $ 346,655 | $ 191,021 |
Net income per share of common stock | ||||
Net income per sub-share certificate - basic (in dollars per share) | $ 16.83 | $ 10.82 | $ 44.84 | $ 24.62 |
Net income per sub-share certificate - diluted (in dollars per share) | $ 16.82 | $ 10.82 | $ 44.82 | $ 24.62 |
Weighted average number of shares of common stock outstanding | ||||
Weighted average number of shares of common stock outstanding - basic (in shares) | 7,714,796 | 7,751,329 | 7,729,866 | 7,754,439 |
Weighted average number of shares of common stock outstanding - diluted (in shares) | 7,720,221 | 7,751,329 | 7,733,505 | 7,754,439 |
Dividend paid per common stock (in USD per share) | $ 3 | $ 2.75 | $ 29 | $ 8.25 |
Oil and gas royalties | ||||
Revenues: | ||||
Total revenues | $ 130,298 | $ 79,098 | $ 355,738 | $ 186,835 |
Water sales | ||||
Revenues: | ||||
Total revenues | 24,426 | 19,554 | 65,518 | 44,983 |
Produced water royalties | ||||
Revenues: | ||||
Total revenues | 19,129 | 15,140 | 52,668 | 43,147 |
Easements and other surface-related income | ||||
Revenues: | ||||
Total revenues | 14,129 | 9,832 | 37,311 | 27,856 |
Land sales and other operating revenue | ||||
Revenues: | ||||
Total revenues | $ 3,129 | $ 69 | $ 3,481 | $ 959 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | |||||||
Other comprehensive income - periodic pension costs | $ 3 | $ 2 | $ 2 | $ 8 | $ 8 | $ 8 | $ 23 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 346,631 | $ 190,935 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred taxes | (840) | (632) |
Depreciation, depletion and amortization | 12,223 | 11,562 |
Share-based compensation | 5,616 | 0 |
Changes in operating assets and liabilities: | ||
Operating assets, excluding income taxes | (45,065) | (35,377) |
Operating liabilities, excluding income taxes | 16,901 | 4,961 |
Income taxes payable | (20,821) | 3,063 |
Cash provided by operating activities | 314,645 | 174,512 |
Cash flows from investing activities: | ||
Proceeds from sale of fixed assets | 106 | 1,079 |
Acquisition of real estate | (12) | (10) |
Acquisition of royalty interests | (1,662) | 0 |
Purchase of fixed assets | (13,023) | (11,058) |
Cash used in investing activities | (14,591) | (9,989) |
Cash flows from financing activities: | ||
Repurchases of common stock | (57,578) | (10,816) |
Dividends paid | (224,130) | (63,970) |
Cash used in financing activities | (281,708) | (74,786) |
Net increase in cash, cash equivalents and restricted cash | 18,346 | 89,737 |
Cash, cash equivalents and restricted cash, beginning of period | 428,242 | 283,024 |
Cash, cash equivalents and restricted cash, end of period | 446,588 | 372,761 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 115,609 | 44,113 |
Supplemental non-cash investing and financing information: | ||
Nonmonetary exchange of assets | 4,174 | 0 |
(Decrease) increase in accounts payable related to capital expenditures | (868) | 441 |
Share repurchases not yet settled | 1,090 | 377 |
Issuance of common stock | 0 | 78 |
Operating lease right-of-use assets | $ 1,364 | $ 0 |
Organization and Description of
Organization and Description of Business Segments | 9 Months Ended |
Sep. 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 September 30, 2022 and the results of its operations for the three and nine months ended September 30, 2022 and 2021, respectively, and its cash flows for the nine months ended September 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 | 9 Months Ended |
Sep. 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. Share-Based 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. Share-based compensation expense for RSUs and RSAs is recognized in the financial statements over the awards’ vesting periods using the graded-vesting method. Share-based 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. Share-based 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 | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate Activity | Real Estate Activity As of September 30, 2022 and December 31, 2021, TPL owned the following land and real estate (in thousands, except number of acres): September 30, December 31, Number of Acres Net Book Value Number of Acres Net Book Value Land (surface rights) (1) 823,323 $ — 823,452 $ — Real estate acquired 57,146 109,083 57,129 109,071 Total real estate situated in Texas 880,469 $ 109,083 880,581 $ 109,071 (1) Real estate assigned through the Declaration of Trust. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 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 September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, Property, plant and equipment, at cost: Water service-related assets $ 119,277 $ 108,732 Furniture, fixtures and equipment 9,633 9,071 Other 598 598 Total property, plant and equipment, at cost 129,508 118,401 Less: accumulated depreciation (47,952) (38,679) Property, plant and equipment, net $ 81,556 $ 79,722 |
Oil and Gas Royalty Interests
Oil and Gas Royalty Interests | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Oil and Gas Royalty Interests | Oil and Gas Royalty Interests As of September 30, 2022 and December 31, 2021, we owned the following oil and gas royalty interests (in thousands): Net Book Value September 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 (2,597) (1,876) Total royalty interests, net $ 45,331 $ 44,390 Acquisition For the nine months ended September 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 nine months ended September 30, 2021. Depletion expense was $0.3 million and $0.1 million for the three months ended September 30, 2022 and 2021, respectively. Depletion expense was $0.7 million and $0.5 million for the nine months ended September 30, 2022 and 2021, respectively. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Incentive Plan for Employees As of September 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 September 30, 2022, 63,664 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 nine months ended September 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) — — 5,612 1,323 Vested — — — — Cancelled and forfeited — — — — Outstanding at September 30, 2022 3,330 $ 1,252 5,612 $ 1,323 (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) On February 11, 2022, 3,824 RSUs were granted to certain employees with a grant date fair value per share of $1,105. On September 1, 2022, 1,788 RSUs were granted to certain employees with a grant date fair value per share of $1,790 per share. The RSUs vest in one-third increments over a three-year period. The following table summarizes activity related to PSUs for the nine months ended September 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 September 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 September 30, 2022, the Company had granted 699 RSAs to non-employee 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 September 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 nine months ended September 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 September 30, 2022 (1) 699 $ 1,281 (1) On January 1, 2022, the Company granted 680 shares of restricted stock to directors. During the nine months ended September 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 Nine Months Ended 2022 2021 2022 2021 Salaries and related employee expenses (employee awards) $ 1,910 $ — $ 4,989 $ — General and administrative expenses (director awards) 211 — 627 — Total share-based compensation expense (1) $ 2,121 $ — $ 5,616 $ — (1) The Company recognized a tax benefit of $0.4 million and $1.2 million related to share-based compensation for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, there was $10.1 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 1.4 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The calculation of our effective tax rate is as follows for the three and nine months ended September 30, 2022 and 2021 (in thousands, except percentages): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Income before income taxes $ 163,975 $ 103,753 $ 440,702 $ 237,456 Income tax expense $ 34,138 $ 19,916 $ 94,071 $ 46,521 Effective tax rate 20.8 % 19.2 % 21.3 % 19.6 % 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 | 9 Months Ended |
Sep. 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 nine months ended September 30, 2022 and 2021 (in thousands, except number of shares and per share data): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net income $ 129,837 $ 83,837 $ 346,631 $ 190,935 Basic EPS: Weighted average shares outstanding for basic EPS 7,714,796 7,751,329 7,729,866 7,754,439 Basic EPS $ 16.83 $ 10.82 $ 44.84 $ 24.62 Diluted EPS: Weighted average shares outstanding for basic EPS 7,714,796 7,751,329 7,729,866 7,754,439 Effect of dilutive securities: Incentive and equity compensation plans 5,425 — 3,639 — Weighted average shares outstanding for diluted EPS 7,720,221 7,751,329 7,733,505 7,754,439 Diluted EPS $ 16.82 $ 10.82 $ 44.82 $ 24.62 Restricted stock is included in the number of shares of Common Stock issued and outstanding, but omitted from the basic EPS calculation until such time as the shares of restricted stock vest. |
Commitments
Commitments | 9 Months Ended |
Sep. 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 September 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 September 30, 2022, the Company has recorded an accrual of approximately $6.9 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 September 30, 2022. |
Changes in Equity
Changes in Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Changes in Equity | Changes in Equity The following tables present changes in our equity for the nine months ended September 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 nine months ended September 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 Net income — — — — — — 129,837 129,837 Dividends paid — $3.00 per share of common stock — — — — — — (23,132) (23,132) Share-based compensation, net of forfeitures — — — — 2,121 — (30) 2,091 Repurchases of common stock (19,071) — 19,071 (32,915) — — — (32,915) Periodic pension costs, net of income taxes of $3 — — — — — 8 — 8 Balances as of September 30, 2022 7,708,845 $ 78 47,311 $ (72,926) $ 5,477 $ (983) $ 789,524 $ 721,170 Sub-share Certificates Common Stock Treasury Stock Accum. Retained Earnings Net Proceeds Total Shares Shares Amount Shares Amount For the nine months ended September 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 Net income — — — — — — 83,837 — 83,837 Dividends paid — $2.75 per share of common stock — — — — — — (21,312) — (21,312) Repurchases of common stock — (6,179) — 6,179 (8,689) — — — (8,689) Periodic pension costs, net of income taxes of $8 — — — — — 29 — — 29 Balances as of September 30, 2021 — 7,748,344 $ 78 7,812 $ (11,193) $ (2,607) $ 614,764 $ — $ 601,042 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 nine months ended September 30, 2022, we repurchased $58.4 million (including share repurchases not yet settled). |
Business Segment Reporting
Business Segment Reporting | 9 Months Ended |
Sep. 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 nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenues: Land and resource management $ 147,215 $ 86,792 $ 393,947 $ 211,823 Water services and operations 43,896 36,901 120,769 91,957 Total consolidated revenues $ 191,111 $ 123,693 $ 514,716 $ 303,780 Net income: Land and resource management $ 108,188 $ 65,292 $ 285,418 $ 150,248 Water services and operations 21,649 18,545 61,213 40,687 Total consolidated net income $ 129,837 $ 83,837 $ 346,631 $ 190,935 Capital expenditures: Land and resource management $ 114 $ 4,528 $ 339 $ 4,541 Water services and operations 1,694 2,059 11,816 6,958 Total capital expenditures $ 1,808 $ 6,587 $ 12,155 $ 11,499 Depreciation, depletion and amortization: Land and resource management $ 567 $ 363 $ 1,632 $ 1,299 Water services and operations 3,350 3,503 10,591 10,263 Total depreciation, depletion and amortization $ 3,917 $ 3,866 $ 12,223 $ 11,562 The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, Assets: Land and resource management $ 676,205 $ 635,338 Water services and operations 152,769 128,726 Total consolidated assets $ 828,974 $ 764,064 Property, plant and equipment, net: Land and resource management $ 6,197 $ 6,639 Water services and operations 75,359 73,083 Total consolidated property, plant and equipment, net $ 81,556 $ 79,722 |
Oil and Gas Producing Activitie
Oil and Gas Producing Activities | 9 Months Ended |
Sep. 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 September 30, 2022 and 2021, our share of oil and gas produced was approximately 23.4 and 19.5 thousand Boe per day, respectively. For the nine months ended September 30, 2022 and September 30, 2021, our share of oil and gas produced was approximately 21.3 and 17.5 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 548 and 452 DUC wells subject to our royalty interest as of September 30, 2022 and December 31, 2021, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 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 On November 1, 2022, our board of directors declared a quarterly cash dividend of $3.00 per share, payable on December 15, 2022 to stockholders of record at the close of business on December 8, 2022. Stock Repurchase Program On November 1, 2022, our board of directors approved a stock repurchase program to purchase up to an aggregate of $250 million of our outstanding common stock to be effective beginning January 1, 2023. The Company intends to purchase stock under the repurchase program opportunistically with funds generated by cash from operations. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. Purchases under the stock repurchase program may be made through a combination of open market repurchases in compliance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, privately negotiated transactions, and/or other transactions at the Company’s discretion, including under a Rule 10b5-1 trading plan that may be implemented by the Company, and will be subject to market conditions, applicable legal requirements and other factors. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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 September 30, 2022 and the results of its operations for the three and nine months ended September 30, 2022 and 2021, respectively, and its cash flows for the nine months ended September 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. |
Share-Based Compensation | Share-Based 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. Share-based compensation expense for RSUs and RSAs is recognized in the financial statements over the awards’ vesting periods using the graded-vesting method. Share-based 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. Share-based 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) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Real Estate Activity | As of September 30, 2022 and December 31, 2021, TPL owned the following land and real estate (in thousands, except number of acres): September 30, December 31, Number of Acres Net Book Value Number of Acres Net Book Value Land (surface rights) (1) 823,323 $ — 823,452 $ — Real estate acquired 57,146 109,083 57,129 109,071 Total real estate situated in Texas 880,469 $ 109,083 880,581 $ 109,071 (1) Real estate assigned through the Declaration of Trust. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, Property, plant and equipment, at cost: Water service-related assets $ 119,277 $ 108,732 Furniture, fixtures and equipment 9,633 9,071 Other 598 598 Total property, plant and equipment, at cost 129,508 118,401 Less: accumulated depreciation (47,952) (38,679) Property, plant and equipment, net $ 81,556 $ 79,722 |
Oil and Gas Royalty Interests (
Oil and Gas Royalty Interests (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Royalty Interests | As of September 30, 2022 and December 31, 2021, we owned the following oil and gas royalty interests (in thousands): Net Book Value September 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 (2,597) (1,876) Total royalty interests, net $ 45,331 $ 44,390 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 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) — — 5,612 1,323 Vested — — — — Cancelled and forfeited — — — — Outstanding at September 30, 2022 3,330 $ 1,252 5,612 $ 1,323 (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) On February 11, 2022, 3,824 RSUs were granted to certain employees with a grant date fair value per share of $1,105. On September 1, 2022, 1,788 RSUs were granted to certain employees with a grant date fair value per share of $1,790 per share. The RSUs 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 nine months ended September 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 September 30, 2022 (1) 699 $ 1,281 |
Schedule of Performance Share Units Activity | The following table summarizes activity related to PSUs for the nine months ended September 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 September 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 Nine Months Ended 2022 2021 2022 2021 Salaries and related employee expenses (employee awards) $ 1,910 $ — $ 4,989 $ — General and administrative expenses (director awards) 211 — 627 — Total share-based compensation expense (1) $ 2,121 $ — $ 5,616 $ — (1) The Company recognized a tax benefit of $0.4 million and $1.2 million related to share-based compensation for the three and nine months ended September 30, 2022, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2022 and 2021 (in thousands, except percentages): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Income before income taxes $ 163,975 $ 103,753 $ 440,702 $ 237,456 Income tax expense $ 34,138 $ 19,916 $ 94,071 $ 46,521 Effective tax rate 20.8 % 19.2 % 21.3 % 19.6 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2022 and 2021 (in thousands, except number of shares and per share data): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net income $ 129,837 $ 83,837 $ 346,631 $ 190,935 Basic EPS: Weighted average shares outstanding for basic EPS 7,714,796 7,751,329 7,729,866 7,754,439 Basic EPS $ 16.83 $ 10.82 $ 44.84 $ 24.62 Diluted EPS: Weighted average shares outstanding for basic EPS 7,714,796 7,751,329 7,729,866 7,754,439 Effect of dilutive securities: Incentive and equity compensation plans 5,425 — 3,639 — Weighted average shares outstanding for diluted EPS 7,720,221 7,751,329 7,733,505 7,754,439 Diluted EPS $ 16.82 $ 10.82 $ 44.82 $ 24.62 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following tables present changes in our equity for the nine months ended September 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 nine months ended September 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 Net income — — — — — — 129,837 129,837 Dividends paid — $3.00 per share of common stock — — — — — — (23,132) (23,132) Share-based compensation, net of forfeitures — — — — 2,121 — (30) 2,091 Repurchases of common stock (19,071) — 19,071 (32,915) — — — (32,915) Periodic pension costs, net of income taxes of $3 — — — — — 8 — 8 Balances as of September 30, 2022 7,708,845 $ 78 47,311 $ (72,926) $ 5,477 $ (983) $ 789,524 $ 721,170 Sub-share Certificates Common Stock Treasury Stock Accum. Retained Earnings Net Proceeds Total Shares Shares Amount Shares Amount For the nine months ended September 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 Net income — — — — — — 83,837 — 83,837 Dividends paid — $2.75 per share of common stock — — — — — — (21,312) — (21,312) Repurchases of common stock — (6,179) — 6,179 (8,689) — — — (8,689) Periodic pension costs, net of income taxes of $8 — — — — — 29 — — 29 Balances as of September 30, 2021 — 7,748,344 $ 78 7,812 $ (11,193) $ (2,607) $ 614,764 $ — $ 601,042 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Results | Segment financial results were as follows for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenues: Land and resource management $ 147,215 $ 86,792 $ 393,947 $ 211,823 Water services and operations 43,896 36,901 120,769 91,957 Total consolidated revenues $ 191,111 $ 123,693 $ 514,716 $ 303,780 Net income: Land and resource management $ 108,188 $ 65,292 $ 285,418 $ 150,248 Water services and operations 21,649 18,545 61,213 40,687 Total consolidated net income $ 129,837 $ 83,837 $ 346,631 $ 190,935 Capital expenditures: Land and resource management $ 114 $ 4,528 $ 339 $ 4,541 Water services and operations 1,694 2,059 11,816 6,958 Total capital expenditures $ 1,808 $ 6,587 $ 12,155 $ 11,499 Depreciation, depletion and amortization: Land and resource management $ 567 $ 363 $ 1,632 $ 1,299 Water services and operations 3,350 3,503 10,591 10,263 Total depreciation, depletion and amortization $ 3,917 $ 3,866 $ 12,223 $ 11,562 |
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 September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, Assets: Land and resource management $ 676,205 $ 635,338 Water services and operations 152,769 128,726 Total consolidated assets $ 828,974 $ 764,064 Property, plant and equipment, net: Land and resource management $ 6,197 $ 6,639 Water services and operations 75,359 73,083 Total consolidated property, plant and equipment, net $ 81,556 $ 79,722 |
Organization and Description _2
Organization and Description of Business Segments (Details) a in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2022 a segment | Sep. 30, 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 | Sep. 30, 2022 USD ($) a | Dec. 31, 2021 USD ($) a |
Number of Acres | ||
Land (surface rights) (acre) | a | 823,323 | 823,452 |
Real estate acquired (acre) | a | 57,146 | 57,129 |
Total Real Estate Situated in Texas (acre) | a | 880,469 | 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 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) - Texas - Land sales and other operating revenue $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) a $ / a | Sep. 30, 2021 USD ($) a $ / a | |
Real Estate Properties [Line Items] | ||
Area of real estate property, sold (in acres) | a | 129 | 30 |
Proceeds from sale of real estate (in USD) | $ | $ 3.3 | $ 0.7 |
Average sales price (in USD per acre) | $ / a | 25,300 | 25,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, at cost | $ 129,508 | $ 129,508 | $ 118,401 | ||
Less: accumulated depreciation | (47,952) | (47,952) | (38,679) | ||
Property, plant and equipment, net | 81,556 | 81,556 | 79,722 | ||
Depreciation expense | 3,600 | $ 3,700 | 11,400 | $ 10,900 | |
Water service-related assets | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, at cost | 119,277 | 119,277 | 108,732 | ||
Furniture, fixtures and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property, plant and equipment, at cost | 9,633 | 9,633 | 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 | Sep. 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 | (2,597) | (1,876) |
Total royalty interests, net | 45,331 | 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 | 9 Months Ended | ||
Sep. 30, 2022 USD ($) a | Sep. 30, 2021 USD ($) a | Sep. 30, 2022 USD ($) a | Sep. 30, 2021 USD ($) a | |
Real Estate Properties [Line Items] | ||||
Acquisition of royalty interests | $ 1,662 | $ 0 | ||
Depletion expense | $ 300 | $ 100 | $ 700 | $ 500 |
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 | 9 Months Ended | |||||
Sep. 01, 2022 | Feb. 11, 2022 | Jan. 01, 2022 | Dec. 29, 2021 | Sep. 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 | $ 10.1 | |||||
Total unrecognized compensation cost, period for recognition | 1 year 4 months 24 days | |||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future grants (in shares) | 63,664 | |||||
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) | 1,788 | 3,824 | 5,612 | |||
Granted (in dollars per share) | $ 1,790 | $ 1,105 | $ 1,323 | |||
Restricted stock units (in units) | 5,612 | 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 | 9 Months Ended | |||||
Sep. 01, 2022 | Apr. 15, 2022 | Feb. 11, 2022 | Jan. 01, 2022 | Sep. 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) | 1,788 | 3,824 | 5,612 | |||
Vested (in shares) | 0 | |||||
Cancelled and forfeited (in shares) | 0 | |||||
Non-vested, at end of period (in shares) | 5,612 | |||||
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) | $ 1,323 | $ 0 | ||||
Granted (in dollars per share) | $ 1,790 | $ 1,105 | 1,323 | |||
Vested (in dollars per share) | 0 | |||||
Cancelled and forfeited (in dollars per share) | 0 | |||||
Non-vested, at end of period (in dollars per share) | $ 1,323 | |||||
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 | 9 Months Ended | |
Sep. 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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 2,121 | $ 0 | $ 5,616 | $ 0 |
Tax benefit related to share-based compensation | 400 | 1,200 | ||
Salaries and related employee expenses (employee awards) | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 1,910 | 0 | 4,989 | 0 |
General and administrative expenses (director awards) | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 211 | $ 0 | $ 627 | $ 0 |
Income Taxes - Calculation of E
Income Taxes - Calculation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 163,975 | $ 103,753 | $ 440,702 | $ 237,456 |
Income tax expense | $ 34,138 | $ 19,916 | $ 94,071 | $ 46,521 |
Effective tax rate (in percent) | 20.80% | 19.20% | 21.30% | 19.60% |
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 | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 129,837 | $ 118,894 | $ 97,900 | $ 83,837 | $ 57,046 | $ 50,052 | $ 346,631 | $ 190,935 |
Basic EPS: | ||||||||
Weighted average shares outstanding for basic EPS (in shares) | 7,714,796 | 7,751,329 | 7,729,866 | 7,754,439 | ||||
Basic earnings per share (in dollars per share) | $ 16.83 | $ 10.82 | $ 44.84 | $ 24.62 | ||||
Diluted EPS: | ||||||||
Weighted average shares outstanding for basic EPS (in shares) | 7,714,796 | 7,751,329 | 7,729,866 | 7,754,439 | ||||
Incentive and equity compensation plans (in shares) | 5,425 | 0 | 3,639 | 0 | ||||
Weighted average shares outstanding for diluted EPS (in shares) | 7,720,221 | 7,751,329 | 7,733,505 | 7,754,439 | ||||
Diluted earnings per share (in dollars per share) | $ 16.82 | $ 10.82 | $ 44.82 | $ 24.62 |
Commitments - Additional Inform
Commitments - Additional Information (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Accrual for ad valorem taxes | $ 6.9 |
Changes in Equity - Changes in
Changes in Equity - Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
May 03, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | $ 645,281 | $ 727,876 | $ 651,711 | $ 547,177 | $ 513,935 | $ 485,184 | $ 651,711 | $ 485,184 | |
Beginning balance, treasury stock (in shares) | 11,461 | 11,461 | |||||||
Net income | 129,837 | 118,894 | $ 97,900 | 83,837 | 57,046 | 50,052 | $ 346,631 | 190,935 | |
Share-based compensation, net of forfeitures | 2,091 | 1,811 | 1,481 | ||||||
Conversion of Sub-shares into shares of common stock | 0 | ||||||||
Periodic pension costs, net of income taxes | 8 | 8 | 8 | 29 | 29 | 28 | 24 | 86 | |
Repurchases of common stock | (32,915) | (25,534) | (8,689) | (2,504) | |||||
Ending balance | $ 721,170 | 645,281 | $ 727,876 | $ 601,042 | $ 547,177 | $ 513,935 | $ 721,170 | $ 601,042 | |
Ending balance, treasury stock (in shares) | 47,311 | 47,311 | |||||||
Dividend paid per common stock (in USD per share) | $ 3 | $ 3 | $ 2.75 | $ 2.75 | $ 29 | $ 8.25 | |||
Other comprehensive income - periodic pension costs | $ 3 | $ 2 | $ 2 | $ 8 | $ 8 | $ 8 | $ 23 | ||
Common Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 7,727,916 | 7,745,290 | 7,744,695 | 7,754,523 | 7,756,156 | 0 | 7,744,695 | 0 | |
Beginning balance | $ 78 | $ 78 | $ 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) | (19,071) | (17,478) | (6,179) | (1,633) | |||||
Ending balance (in shares) | 7,708,845 | 7,727,916 | 7,745,290 | 7,748,344 | 7,754,523 | 7,756,156 | 7,708,845 | 7,748,344 | |
Ending balance | $ 78 | $ 78 | $ 78 | $ 78 | $ 78 | $ 78 | $ 78 | $ 78 | |
Sub-share Certificates | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 0 | 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 | 0 | |||||
Treasury Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | $ (40,011) | $ (14,617) | $ (15,417) | $ (2,504) | $ 0 | $ 0 | $ (15,417) | $ 0 | |
Beginning balance, treasury stock (in shares) | 28,240 | 10,866 | 11,461 | 1,633 | 0 | 0 | 11,461 | 0 | |
Share-based compensation, forfeitures (in shares) | (104) | (595) | |||||||
Share-based compensation, net of forfeitures | $ 140 | $ 800 | |||||||
Repurchases of common stock (in shares) | 19,071 | 17,478 | 6,179 | 1,633 | |||||
Repurchases of common stock | $ (32,915) | $ (25,534) | $ (8,689) | $ (2,504) | |||||
Ending balance | $ (72,926) | $ (40,011) | $ (14,617) | $ (11,193) | $ (2,504) | $ 0 | $ (72,926) | $ (11,193) | |
Ending balance, treasury stock (in shares) | 47,311 | 28,240 | 10,866 | 7,812 | 1,633 | 0 | 47,311 | 7,812 | |
Additional Paid-in Capital | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | $ 3,356 | $ 1,505 | $ 28 | $ 28 | |||||
Share-based compensation, net of forfeitures | 2,121 | 1,851 | 1,477 | ||||||
Ending balance | 5,477 | 3,356 | 1,505 | 5,477 | |||||
Accum. Other Comp. Inc/(Loss) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | (991) | (999) | (1,007) | $ (2,636) | $ (2,665) | $ (2,693) | (1,007) | $ (2,693) | |
Periodic pension costs, net of income taxes | 8 | 8 | 8 | 29 | 29 | 28 | |||
Ending balance | (983) | (991) | (999) | (2,607) | (2,636) | (2,665) | (983) | (2,607) | |
Retained Earnings | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 682,849 | 741,909 | 668,029 | 552,239 | 516,522 | 0 | 668,029 | 0 | |
Net income | 129,837 | 118,894 | 97,900 | 83,837 | 57,046 | 50,052 | |||
Share-based compensation, net of forfeitures | (30) | (180) | (796) | ||||||
Conversion of Sub-shares into shares of common stock | 487,799 | ||||||||
Ending balance | 789,524 | 682,849 | 741,909 | 614,764 | 552,239 | 516,522 | $ 789,524 | 614,764 | |
Net Proceeds From All Sources | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 0 | 0 | 487,877 | 487,877 | |||||
Conversion of Sub-shares into shares of common stock | (487,877) | ||||||||
Ending balance | 0 | 0 | 0 | $ 0 | |||||
Dividend Paid | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends paid | $ (23,132) | $ (23,188) | (23,224) | $ (21,312) | $ (21,329) | (21,329) | |||
Dividend paid per common stock (in USD per share) | $ 3 | $ 3 | $ 2.75 | $ 2.75 | |||||
Dividend Paid | Retained Earnings | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends paid | $ (23,132) | $ (23,188) | $ (23,224) | $ (21,312) | $ (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 ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Mar. 11, 2022 | |
Equity [Abstract] | ||
Shares authorized to be repurchased | $ 100 | |
Value of share repurchased | $ 58.4 |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) a in Thousands | Sep. 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 | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||||||
Total consolidated revenues | $ 191,111 | $ 123,693 | $ 514,716 | $ 303,780 | ||||
Net income | 129,837 | $ 118,894 | $ 97,900 | 83,837 | $ 57,046 | $ 50,052 | 346,631 | 190,935 |
Total capital expenditures | 1,808 | 6,587 | 12,155 | 11,499 | ||||
Depreciation, depletion and amortization | 3,917 | 3,866 | 12,223 | 11,562 | ||||
Land and resource management | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total consolidated revenues | 147,215 | 86,792 | 393,947 | 211,823 | ||||
Net income | 108,188 | 65,292 | 285,418 | 150,248 | ||||
Total capital expenditures | 114 | 4,528 | 339 | 4,541 | ||||
Depreciation, depletion and amortization | 567 | 363 | 1,632 | 1,299 | ||||
Water services and operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total consolidated revenues | 43,896 | 36,901 | 120,769 | 91,957 | ||||
Net income | 21,649 | 18,545 | 61,213 | 40,687 | ||||
Total capital expenditures | 1,694 | 2,059 | 11,816 | 6,958 | ||||
Depreciation, depletion and amortization | $ 3,350 | $ 3,503 | $ 10,591 | $ 10,263 |
Business Segment Reporting - As
Business Segment Reporting - Assets and Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 828,974 | $ 764,064 |
Total consolidated property, plant and equipment, net | 81,556 | 79,722 |
Land and resource management | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 676,205 | 635,338 |
Total consolidated property, plant and equipment, net | 6,197 | 6,639 |
Water services and operations | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 152,769 | 128,726 |
Total consolidated property, plant and equipment, net | $ 75,359 | $ 73,083 |
Oil and Gas Producing Activit_2
Oil and Gas Producing Activities (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 Boe well | Sep. 30, 2021 Boe | Sep. 30, 2022 Boe well | Sep. 30, 2021 Boe | Dec. 31, 2021 well | |
Extractive Industries [Abstract] | |||||
Share of oil and gas produced in thousands per day | Boe | 23,400 | 19,500 | 21,300 | 17,500 | |
Number of oil and gas wells | well | 548 | 548 | 452 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event $ / shares in Units, $ in Millions | Nov. 01, 2022 USD ($) $ / shares |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ | $ 250 |
Dividend declared | |
Subsequent Event [Line Items] | |
Annual cash dividend (in dollars per share) | $ / shares | $ 3 |