Texas Pacific Land Trust 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2017shares
Document Information [Line Items]
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)	7,839,042
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 69,496,293	$ 49,417,889
Accrued receivables	23,376,596	6,550,429
Other assets	598,136	232,970
Deferred tax asset	12,252,382	3,874,788
Notes receivable for land sales	46,389	94,971
Water wells, vehicles, furniture, and equipment – at cost less accumulated depreciation	8,802,014	1,168,281
Real estate acquired: (10,065 acres at September 30, 2017 and 10,065 acres at December 31, 2016)	1,114,601	1,114,601
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned:
	115,686,411	62,453,929
Liabilities and Capital
Accounts payable and accrued expenses	2,745,047	826,771
Income taxes payable	7,199,780	1,950,774
Other taxes payable	466,350	276,813
Unearned revenue	37,436,192	11,775,049
Total liabilities	47,847,369	14,829,407
Capital:
Certificates of Proprietary Interest, par value $100 each; outstanding 0 Certificates
Sub-share Certificates in Certificates of Proprietary Interest, par value $.03 1/3 each; outstanding:
7,839,042 Sub-shares in 2017 and 7,927,314 Sub-shares in 2016
Other comprehensive loss	(907,152)	(959,563)
Net proceeds from all sources	68,746,194	48,584,085
Total capital	67,839,042	47,624,522
	115,686,411	62,453,929
Land Surface Rights [Member]
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned:
Land (surface rights) situated in eighteen counties in Texas – 877,633 acres in 2017 and 877,488 acres in 2016	0	0
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 2017 and 2016	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 2017 and 2016	$ 0	$ 0

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals)	Sep. 30, 2017a$ / sharesshares	Dec. 31, 2016a$ / sharesshares
Real estate acquired, acres (Acre)	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 of proprietary interest, par value (in dollars per share) | $ / shares	$ 0.0333	$ 0.0333
Sub-share certificates of proprietary interest, outstanding (in shares) | shares	7,839,042	7,927,314
Land Surface Rights [Member]
Land (surface rights), acres (Acre)	877,633	877,488
Royalty Interests in Acres 1_16 [Member]
Nonparticipating perpetual royalty interest in acres (Acre)	373,777	373,777
Royalty Interests in Acres 1_128 [Member]
Nonparticipating perpetual royalty interest in acres (Acre)	85,414	85,414

Consolidated Statements of Inco

Consolidated Statements of Income and Total Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income:
Oil and gas royalties	$ 21,212,568	$ 8,454,876	$ 45,288,306	$ 20,932,329
Easements and sundry income	13,221,548	2,928,095	28,587,706	14,535,517
Water sales and royalties	7,917,581	2,272,653	19,583,897	5,935,174
Land sales		485,505	220,400	571,505
Other income	124,757	124,623	373,467	373,655
	42,476,454	14,265,752	94,053,776	42,348,180
Expenses:
Taxes, other than income taxes	796,633	497,244	2,218,599	1,238,046
General and administrative expenses	2,608,455	676,332	5,927,862	2,123,860
	3,405,088	1,173,576	8,146,461	3,361,906
Operating income	39,071,366	13,092,176	85,907,315	38,986,274
Interest income earned from investments	20,073	7,500	39,132	19,286
Income before income taxes	39,091,439	13,099,676	85,946,447	39,005,560
Income taxes	12,686,727	4,170,264	27,944,860	12,672,980
Net income	26,404,712	8,929,412	58,001,587	26,332,580
Other comprehensive income – periodic pension costs, net of income taxes of $9,407, $12,909, $28,221, and $38,728, respectively	17,470	22,855	52,411	68,566
Total comprehensive income	$ 26,422,182	$ 8,952,267	$ 58,053,998	$ 26,401,146
Average number of sub-share certificates and equivalent sub-share certificates outstanding (in shares)	7,851,916	7,984,936	7,872,554	8,025,222
Basic and dilutive earnings per sub-share certificate on net income (in dollars per share)	$ 3.36	$ 1.12	$ 7.37	$ 3.28
Cash dividends per sub-share certificate			$ 1.35	$ 0.31

Consolidated Statements of Inc5

Consolidated Statements of Income and Total Comprehensive Income (Unaudited) (Parentheticals) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other comprehensive income, tax	$ 9,407	$ 12,909	$ 28,221	$ 38,728

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 58,001,587	$ 26,332,580
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	(8,377,594)	21,997
Depreciation and amortization	312,531	18,674
(Gain) loss on disposal of fixed assets	(3,901)	8,201
Changes in operating assets and liabilities:
Accrued receivables and other assets	(17,191,333)	(3,160,632)
Prepaid income taxes		(202,494)
Notes receivable for land sales	48,582	44,143
Accounts payable, accrued expenses and other liabilities	27,821,367	7,714,023
Income taxes payable	5,249,006	(634,911)
Net cash provided by operating activities	65,860,245	30,141,581
Cash flows from investing activities:
Proceeds from sale of fixed assets	27,500	18,000
Purchase of fixed assets	(7,969,863)	(368,938)
Net cash used in investing activities	(7,942,363)	(350,938)
Cash flows from financing activities:
Purchase of Sub-share Certificates in Certificates of Proprietary Interest	(27,158,458)	(26,799,253)
Dividends paid	(10,681,020)	(2,507,183)
Net cash used in financing activities	(37,839,478)	(29,306,436)
Net increase in cash and cash equivalents	20,078,404	484,207
Cash and cash equivalents, beginning of period	49,417,889	45,011,969
Cash and cash equivalents, end of period	$ 69,496,293	$ 45,496,176

Note 1

Note 1	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Members' Equity Notes Disclosure [Text Block]	( 1 On June 8, 2017, nine September 30, 2017, not

Note 2

Note 2	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Basis of Accounting [Text Block]	( 2 In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position of the Trust, including TPWR, as of September 30, 2017 three nine September 30, 2017 2016, nine September 30, 2017 2016, 10 December 31, 2016, February 28, 2017.

Note 3

Note 3	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	( 3 We evaluate events that occur after the balance sheet date but before consolidated financial statements are, or are available to be, issued to determine if a material event requires our amending the consolidated financial statements or disclosing the event. We evaluated subsequent events through November 7, 2017,

Note 4

Note 4	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	( 4 No no no no

Note 5

Note 5	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Conversion Of Stock [Text Block]	( 5 The Sub-shares and the Certificates of Proprietary Interest are freely interchangeable in the ratio of one 3,000 3,000 one

Note 6

Note 6	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	( 6 The Trust’s effective Federal income tax rate is less than the 35%

Note 7

Note 7	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Quarterly Financial Information [Text Block]	( 7 The results of operations for the three nine September 30, 2017 not

Note 8

Note 8	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Cash and Cash Equivalents Disclosure [Text Block]	( 8 The Trust invests cash in excess of daily requirements primarily in bank deposit and savings accounts and certificates of deposit with maturities of ninety Supplemental cash flow information for the nine September 30, 2017 2016 201 7 20 16 Income taxes paid $ 31,101,669 $ 13,525,307

Note 9

Note 9	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	( 9 ASC 280, Segment Reporting,” 280, one 1888

Note 10

Note 10	9 Months Ended
	Sep. 30, 2017
Accounting Standards Update 2017 07 [Member]
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	( 10 In March 2017, No. 2017 07 , “Compensation – Retirement Benefits (Topic 715 Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” 2017 07” 2017 07 December 31, 2017, first 2018.

Note 11

Note 11	9 Months Ended
	Sep. 30, 2017
Accounting Standards Update 2016-13 [Member]
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	( 11 In June 2016, No. 2016 13, Financial Instruments – Credit Losses (Topic 326 2016 13” December 15, 2019, first 2020.

Note 12

Note 12	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	( 1 2 In February 2016, No. 2016 02, Leases (Topic 842 2016 02” December 15, 2018, first 2019.

Note 13

Note 13	9 Months Ended
	Sep. 30, 2017
Accounting Standards Update 2014-09 [Member]
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	( 1 3 In May 2014, No. 2014 09, Revenue Recognition (Topic 606 2014 09” five August 2015, No. 2015 14, “Revenue from Contracts with Customers (Topic 606 2015 14” 2014 09 December 15, 2017, We have made significant progress evaluating our revenue agreements, by type, to determine the potential impact of adopting the new standard. The most significant impact will involve easement agreements. Under current accounting, we recognize revenue related to term easement agreements over the term of the agreement. Upon adoption of the new standard on January 1, 2018, no December 31, 2016 September 30, 2017, $7,809,669 $30,845,929,

Note 14

Note 14	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
D U C Wells [Text Block]	( 1 4 There are a number of oil and gas wells that have been drilled but are not 137 not not

Note 8 (Tables)

Note 8 (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	201 7 20 16 Income taxes paid $ 31,101,669 $ 13,525,307

Note 5 (Details Textual)

Note 5 (Details Textual) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Certificate [Member]
Number of Shares Used In Ratio		1
Sub Shares [Member]
Number of Shares Used In Ratio	3,000	3,000

Note 6 (Details Textual)

Note 6 (Details Textual)	9 Months Ended
	Sep. 30, 2017
Effective Income Tax Rate Reconciliation, Percent	35.00%

Note 8 - Supplemental Cash Flow

Note 8 - Supplemental Cash Flow Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income taxes paid	$ 31,101,669	$ 13,525,307

Note 9 (Details Textual)

Note 9 (Details Textual)	9 Months Ended
	Sep. 30, 2017
Number of Operating Segments	1

Note 13 (Details Textual)

Note 13 (Details Textual) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Term Easements [Member]
Deferred Revenue	$ 30,845,929	$ 7,809,669

Note 14 (Details Textual)

Note 14 (Details Textual)	Sep. 30, 2017
Number of Oil and Gas Wells	137