The following is a summary of the Texas Pacific Land Corporation (TPL) Q2 2024 Earnings Call Transcript:
Financial Performance:
Consolidated revenues for Q2 2024 were approximately $172 million.
Adjusted EBITDA for the quarter was $153 million, with an EBITDA margin of 89%.
Diluted earnings per share increased by 14% year-over-year to $4.98, driven by high royalty production, water sales, and produced water royalties.
Business Progress:
Set corporate records in all major water performance indicators including water sales revenues, volumes, and produced water royalties.
Under construction: 10,000 barrel per day test facility for produced water desalination and beneficial reuse, expected to complete in mid-next year.
TPL's oil and gas royalty production increased slightly with a positive outlook due to expanded well inventory and strong permit activity.
Opportunities:
Plans to sustain and grow permian region royalties with potential for acquisitions, given the large opportunity set for high-quality mineral and royalty assets and access to off-market deals.
Continued expansion of water business by increasing infrastructure to accommodate more off-footprint sales, capturing a larger share of the market.
Risks:
Persisting weak natural gas prices adversely affecting realized prices; though possibly mitigated by the expected completion of the Matterhorn pipeline.
High and persistent inflation leading to increased upstream costs, though royalty model largely shields TPL.
More details: Texas Pacific Land IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
