Texas Pacific Land Trust 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	3 Months Ended
	Mar. 31, 2016shares
Entity Registrant Name	TEXAS PACIFIC LAND TRUST
Entity Central Index Key	97,517
Trading Symbol	tpl
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding (in shares)	8,066,180
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Balance Sheets (Current Period

Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Royalty Interests in Acres 1_16 [Member]
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned:
1/16 nonparticipating perpetual royalty interest in 373,777 acres in 2016 and 2015	$ 0	$ 0
Royalty Interests in Acres 1_128 [Member]
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned:
1/128 nonparticipating perpetual royalty interest in 85,414 acres in 2016 and 2015	0	0
Cash and cash equivalents	46,719,872	45,011,969
Accrued receivables	4,229,091	3,787,534
Other assets	142,578	121,426
Notes receivable for land sales	134,868	139,114
Water wells, vehicles, furniture, and equipment - at cost less accumulated depreciation	377,109	260,901
Real estate acquired: (10,065 acres at March 31, 2016 and 10,065 acres at December 31, 2015)	1,114,601	1,114,601
Land (surface rights) situated in eighteen counties in Texas – 878,259 acres in 2016 and 878,268 acres in 2015	0	0
	52,718,119	50,435,545
LIABILITIES AND CAPITAL
Accounts payable and accrued expenses	1,189,638	868,807
Income taxes payable	3,953,989	634,911
Other taxes payable	199,388	167,290
Unearned revenue	3,299,041	2,579,406
Deferred taxes	174,055	163,213
Pension plan liability	349,045	333,239
Total liabilities	9,165,156	4,746,866
Capital:
Certificates of Proprietary Interest, par value $100 each; outstanding 0 Certificates	0	0
Sub-share Certificates in Certificates of Proprietary Interest, par value $.03 1/3 each; outstanding: 8,066,180 Sub-shares in 2016 and 8,118,064 Sub-shares in 2015	0	0
Other comprehensive loss	(1,226,051)	(1,248,906)
Net proceeds from all sources	44,779,014	46,937,585
Total capital	43,552,963	45,688,679
	$ 52,718,119	$ 50,435,545

Balance Sheets (Current Period3

Balance Sheets (Current Period Unaudited) (Parentheticals)	Mar. 31, 2016a$ / sharesshares	Dec. 31, 2015a$ / sharesshares
Land Surface Rights [Member]
Land (surface rights)	878,259	878,268
Royalty Interests in Acres 1_16 [Member]
Nonparticipating perpetual royalty interest in acres	373,777	373,777
Royalty Interests in Acres 1_128 [Member]
Nonparticipating perpetual royalty interest in acres	85,414	85,414
Acres Acquired	10,065	10,065
Certificates of Proprietary Interest, par value (in dollars per share) | $ / shares	$ 100	$ 100
Certificates of Proprietary Interest, outstanding (in shares) | shares	0	0
Sub-share Certificates in Certificates of Proprietary Interest, par value (in dollars per share) | $ / shares	$ 0.0333	$ 0.0333
Sub-share Certificates in Certificates of Proprietary Interest, outstanding (in shares) | shares	8,066,180	8,118,064

Statements of Income and Total

Statements of Income and Total Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income:
Oil and gas royalties	$ 5,610,751	$ 6,525,265
Land sales	86,000	20,268,000
Easements and sundry income	6,070,973	7,802,995
Other income	124,437	136,400
	11,892,161	34,732,660
Expenses:
Taxes, other than income taxes	346,584	376,278
General and administrative expenses	749,105	607,464
	1,095,689	983,742
Operating income	10,796,472	33,748,918
Interest income earned from investments	5,942	6,693
Income before income taxes	10,802,414	33,755,611
Income taxes	3,522,363	11,589,522
Net income	7,280,051	22,166,089
Other comprehensive income – periodic pension costs, net of income taxes of $12,307 and $12,909, respectively	22,855	23,975
Total comprehensive income	$ 7,302,906	$ 22,190,064
Average number of sub-share certificates and equivalent sub-share certificates outstanding (in shares)	8,098,106	8,297,581
Basic and dilutive earnings per sub-share certificate on net income (in dollars per share)	$ 0.90	$ 2.67
Cash dividends per sub-share certificate	$ 0.31	$ 0.29

Statements of Income and Total5

Statements of Income and Total Comprehensive Income (Unaudited) (Parentheticals) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other comprehensive income, tax	$ 12,307	$ 12,909

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 7,280,051	$ 22,166,089
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	10,842	6,274
Depreciation and amortization	7,274	4,799
(Gain) loss on disposal of fixed assets	8,201	(712)
Changes in operating assets and liabilities:
Accrued receivables and other assets	$ (462,709)	(89,403)
Prepaid income taxes		815,937
Notes receivable for land sales	$ 4,246	18,882
Accounts payable, accrued expenses and other liabilities	1,111,225	(1,838,741)
Income taxes payable	3,319,078	10,780,221
Net cash provided by operating activities	11,278,208	31,863,346
Cash flows from investing activities:
Proceeds from sale of fixed assets	18,000	25,000
Purchase of fixed assets	(149,683)	(38,591)
Net cash used in investing activities	(131,683)	(13,591)
Cash flows from financing activities:
Purchase of Sub-share Certificates in Certificates of Proprietary Interest	(6,931,439)	(6,660,674)
Dividends paid	(2,507,183)	(2,402,460)
Net cash used in financing activities	(9,438,622)	(9,063,134)
Net increase in cash and cash equivalents	1,707,903	22,786,621
Cash and cash equivalents, beginning of period	45,011,969	26,814,759
Cash and cash equivalents, end of period	$ 46,719,872	$ 49,601,380

Note 1

Note 1	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Basis of Accounting [Text Block]	(1) In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position of Texas Pacific Land Trust (the “Trust”) as of March 31, 2016 and the results of its operations for the three month period ended March 31, 2016 and 2015, respectively, and its cash flows for the three month period ended March 31, 2016 and 2015, respectively. The financial statements and footnotes included herein should be read in conjunction with the Trust’s annual financial statements as of December 31, 2015 and 2014 and for each of the years in the three year period ended December 31, 2015 included in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2015. Beginning with the second quarter of 2015, the Trust updated the format of the revenue section in the Statements of Income and Total Comprehensive Income to provide more detail regarding revenue sources.

Note 2

Note 2	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	(2) We evaluate events that occur after the balance sheet date but before financial statements are, or are available to be, issued to determine if a material event requires our amending the financial statements or disclosing the event. We evaluated subsequent events through May 5, 2016, the date we issued these financial statements.

Note 3

Note 3	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	(3) No value has been assigned to the land held by the Trust other than parcels which have been acquired through foreclosure and a limited number of parcels which have been acquired because they were offered for sale and were contiguous to parcels already owned by the Trust. Consequently, no allowance for depletion is computed, and no charge to income is made, with respect thereto, and no cost is deducted from the proceeds of the land sales in computing gain or loss thereon.

Note 4

Note 4	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Conversion Of Stock [Text Block]	(4) The Sub-shares and the Certificates of Proprietary Interest are freely interchangeable in the ratio of one Certificate of Proprietary Interest for 3,000 Sub-shares or 3,000 Sub-shares for one Certificate of Proprietary Interest.

Note 5

Note 5	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	(5) The Trust’s effective Federal income tax rate is less than the 35% statutory rate because taxable income is reduced by statutory percentage depletion allowed on mineral royalty income.

Note 6

Note 6	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Quarterly Financial Information [Text Block]	(6) The results of operations for the three month period ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year.

Note 7

Note 7	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Cash and Cash Equivalents Disclosure [Text Block]	(7) The Trust invests cash in excess of daily requirements primarily in bank deposit and savings accounts and certificates of deposit with maturities of ninety days or less. Such investments are deemed to be highly liquid debt instruments and classified as cash equivalents for purposes of the statements of cash flows. Supplemental cash flow information for the three month periods ended March 31, 2016 and 2015 is summarized as follows: 2016 2015 Income taxes paid $ 204,749 $ ––

Note 8

Note 8	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	(8) ASC 280, “ Segment Reporting,”

Note 9

Note 9	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	(9) In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue Recognition (Topic 606): Revenue from Contracts with Customers”

Note 10

Note 10	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	(10) In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Subsequent Events, Policy [Policy Text Block]	We evaluate events that occur after the balance sheet date but before financial statements are, or are available to be, issued to determine if a material event requires our amending the financial statements or disclosing the event. We evaluated subsequent events through May 5, 2016, the date we issued these financial statements.
Segment Reporting, Policy [Policy Text Block]	ASC 280, “ Segment Reporting,”
New Accounting Pronouncements, Policy [Policy Text Block]	In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue Recognition (Topic 606): Revenue from Contracts with Customers”
Lease, Policy [Policy Text Block]	In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”

Note 7 (Tables)

Note 7 (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	2016 2015 Income taxes paid $ 204,749 $ ––

Note 4 (Details Textual)

Note 4 (Details Textual)	3 Months Ended
	Mar. 31, 2016shares
Certificate [Member]
Number of Shares Used In Ratio	1
Sub Shares [Member]
Number of Shares Used In Ratio	3,000

Note 5 (Details Textual)

Note 5 (Details Textual)	3 Months Ended
	Mar. 31, 2016
Effective Income Tax Rate Reconciliation, Percent	35.00%

Note 7 - Supplemental Cash Flow

Note 7 - Supplemental Cash Flow Information (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Income taxes paid	$ 204,749

Note 8 (Details Textual)

Note 8 (Details Textual)	3 Months Ended
	Mar. 31, 2016
Number of Operating Segments	1