The following is a summary of the Texas Pacific Land Corporation (TPL) Q3 2024 Earnings Call Transcript:
Financial Performance:
TPL reported Q3 2024 revenues of approximately $174 million.
Adjusted EBITDA reached $144 million, with an 83% adjusted EBITDA margin.
Diluted earnings per share increased slightly to $4.63, compared to the same period last year.
Business Progress:
Recorded a corporate record of approximately 28,300 barrels of oil equivalent per day in royalty production.
Water sales revenues increased by 37% year-over-year.
Produced water royalty revenues saw a 46% increase year-over-year, driven by expanding commercial arrangements with third-party customers.
Opportunities:
Recent strategic acquisitions, costing nearly $40 million, of over 50,000 acres should provide incremental growth for produced water operations, specifically outside core oil and gas zones in the Permian Basin.
Signed agreements for commercial exploitation of newly acquired surfaces that offer critical support for expanding produced water solutions.
Risks:
Lower realized oil and natural gas prices, which declined by 8% and 65%, respectively, could impact profitability.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
