TEXAS PACIFIC LAND TRUST

CIK:0000097517|SEC Filings

Condensed Consolidated Statements of Income and Total Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Total revenues	$ 74,383	$ 98,530	$ 228,250	$ 377,164
Expenses:
Salaries and related employee expenses	7,678	8,537	27,235	22,742
Water service-related expenses	2,260	5,122	11,205	15,423
General and administrative expenses	1,883	2,864	7,290	6,877
Legal and professional fees	1,987	5,558	6,955	15,198
Land sales expenses	67	0	2,773	225
Depreciation, depletion and amortization	3,760	2,631	10,773	5,286
Total operating expenses	17,635	24,712	66,231	65,751
Operating income	56,748	73,818	162,019	311,413
Other income, net	1,287	941	2,306	1,771
Income before income taxes	58,035	74,759	164,325	313,184
Income tax expense (benefit):
Current	11,146	9,918	33,153	43,485
Deferred	614	4,819	(86)	20,093
Total income tax expense	11,760	14,737	33,067	63,578
Net income	46,275	60,022	131,258	249,606
Other comprehensive income — periodic pension costs, net of income taxes of $4, $2, $11 and $7, respectively	13	9	40	27
Total comprehensive income	$ 46,288	$ 60,031	$ 131,298	$ 249,633
Weighted average number of Sub-share Certificates outstanding (in shares)	7,756,156	7,756,156	7,756,156	7,756,643
Net income per Sub-share Certificate — basic and diluted (in dollars per share)	$ 5.97	$ 7.74	$ 16.92	$ 32.18
Cash dividends per Sub-share Certificate (in dollars per share)	$ 0	$ 0	$ 16.00	$ 6.00
Oil and gas royalties
Revenues:
Total revenues	$ 31,758	$ 38,259	$ 94,631	$ 111,113
Easements and other surface-related income
Revenues:
Total revenues	18,936	33,911	69,970	87,635
Water sales and royalties
Revenues:
Total revenues	12,139	21,654	47,525	65,067
Land sales
Revenues:
Total revenues	11,463	4,621	15,855	113,020
Other operating revenue
Revenues:
Total revenues	$ 87	$ 85	$ 269	$ 329

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 131,258	$ 249,606
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	(86)	20,093
Depreciation, depletion and amortization	10,773	5,286
Land sales revenue recognized on land exchanges	(1,415)	0
Changes in operating assets and liabilities:
Operating assets, excluding income taxes	24,878	(18,278)
Prepaid income taxes	0	9,398
Operating liabilities, excluding income taxes	(1,404)	15,361
Income taxes payable	(2,555)	2,757
Cash provided by operating activities	161,449	284,223
Cash flows from investing activities:
Proceeds from sale of fixed assets	0	117
Acquisition of land	(3,966)	(74,410)
Acquisition of royalty interests	(16,945)	(5,017)
Purchase of fixed assets	(4,326)	(27,579)
Cash used in investing activities	(25,237)	(106,889)
Cash flows from financing activities:
Purchase of Sub-share Certificates in Certificates of Proprietary Interest	0	(4,353)
Dividends paid	(124,098)	(46,546)
Cash used in financing activities	(124,098)	(50,899)
Net increase in cash, cash equivalents and restricted cash	12,114	126,435
Cash, cash equivalents and restricted cash, beginning of period	303,645	123,446
Cash, cash equivalents, and restricted cash, end of period	315,759	249,881
Supplemental disclosure of cash flow information:
Income taxes paid	35,719	31,337
Supplemental non-cash investing information:
Operating lease right-of-use assets	0	3,712
Land exchange	$ 1,415	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 315,759	$ 303,645
Accrued receivables, net	41,172	62,995
Other assets	3,874	3,980
Property, plant and equipment, net of accumulated depreciation of $21,619 and $11,313 as of September 30, 2020 and December 31, 2019, respectively	82,330	88,323
Real estate acquired	109,733	107,075
Royalty interests acquired, net of accumulated depletion of $582 and $260 as of September 30, 2020 and December 31, 2019, respectively	45,683	29,060
Operating lease right-of-use assets	2,630	3,098
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned:
Total assets	601,181	598,176
LIABILITIES AND CAPITAL
Accounts payable and accrued expenses	15,846	19,193
Income taxes payable	2,716	5,271
Deferred taxes payable	40,741	40,827
Unearned revenue	19,669	17,381
Operating lease liabilities	2,982	3,367
Total liabilities	81,954	86,039
Commitments and contingencies	0	0
Capital:
Certificates of Proprietary Interest, par value $100 each; none outstanding	0	0
Sub-share Certificates in Certificates of Proprietary Interest, par value $0.0333 each; outstanding 7,756,156 Sub-share Certificates as of September 30, 2020 and December 31, 2019	0	0
Accumulated other comprehensive loss	(1,421)	(1,461)
Net proceeds from all sources	520,648	513,598
Total capital	519,227	512,137
Total liabilities and capital	601,181	598,176
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 interest
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 interest
Real estate and royalty interests assigned through the 1888 Declaration of Trust, no value assigned:
1/128th nonparticipating perpetual royalty interest	$ 0	$ 0