Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 14, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document type | 10-K | ||
Document annual report | true | ||
Document period end date | Dec. 31, 2023 | ||
Current fiscal year end date | --12-31 | ||
Document transition report | false | ||
Entity file number | 1-39804 | ||
Entity registrant name | Texas Pacific Land Corporation | ||
Entity incorporation, state or country code | DE | ||
Entity tax identification number | 75-0279735 | ||
Entity address, address line one | 1700 Pacific Avenue | ||
Entity address, address line two | Suite 2900 | ||
Entity address, city or town | Dallas | ||
Entity address, state or province | TX | ||
Entity address, postal zip code | 75201 | ||
City area code | (214) | ||
Local phone number | 969-5530 | ||
Title of 12(b) security | Common Stock(par value $.01 per share) | ||
Trading symbol | TPL | ||
Security exchange name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity current reporting status | Yes | ||
Entity interactive data current | Yes | ||
Entity filer category | Large Accelerated Filer | ||
Entity small business | false | ||
Entity emerging growth company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity shell company | false | ||
Entity Public Float | $ 7.5 | ||
Entity common stock, shares outstanding | 7,668,422 | ||
Entity central index key | 0001811074 | ||
Document fiscal year focus | 2023 | ||
Document fiscal period focus | FY | ||
Amendment flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 725,169 | $ 510,834 |
Accounts receivable and accrued receivables, net | 128,971 | 103,983 |
Prepaid expenses and other current assets | 2,944 | 7,427 |
Tax like-kind exchange escrow | 5,380 | 6,348 |
Prepaid income taxes | 0 | 4,809 |
Total current assets | 862,464 | 633,401 |
Real estate acquired | 130,024 | 109,704 |
Property, plant and equipment, net | 89,587 | 85,478 |
Royalty interests acquired, net | 46,609 | 45,025 |
Intangible assets, net | 21,025 | 0 |
Real estate and royalty interests assigned through the Declaration of Trust, no value assigned: | ||
Operating lease right-of-use assets | 1,861 | 2,525 |
Other assets | 4,828 | 1,294 |
Total assets | 1,156,398 | 877,427 |
LIABILITIES AND EQUITY | ||
Accounts payable and accrued expenses | 22,501 | 23,443 |
Ad valorem and other taxes payable | 10,761 | 8,497 |
Income taxes payable | 4,795 | 3,167 |
Unearned revenue | 6,330 | 4,488 |
Total current liabilities | 44,387 | 39,595 |
Deferred taxes payable | 42,365 | 41,151 |
Unearned revenue - noncurrent | 25,006 | 21,708 |
Operating lease liabilities | 1,170 | 1,955 |
Accrued liabilities - noncurrent | 274 | 131 |
Total liabilities | 113,202 | 104,540 |
Commitments and contingencies | 0 | 0 |
Equity: | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized, none outstanding as of December 31, 2023 and 2022 | 0 | 0 |
Common stock, $0.01 par value; 7,756,156 shares authorized and 7,669,227 and 7,695,679 outstanding as of December 31, 2023 and 2022, respectively | 78 | 78 |
Treasury stock, at cost; 86,929 and 60,477 shares as of December 31, 2023 and 2022, respectively | (144,998) | (104,139) |
Additional paid-in capital | 14,613 | 8,293 |
Accumulated other comprehensive income | 1,831 | 2,516 |
Retained earnings | 1,171,672 | 866,139 |
Total equity | 1,043,196 | 772,887 |
Total liabilities and equity | 1,156,398 | 877,427 |
Land (surface rights) | ||
Real estate and royalty interests assigned through the 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 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 Declaration of Trust, no value assigned: | ||
1/128th nonparticipating perpetual royalty interest | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 7,756,156 | 7,756,156 |
Common stock, outstanding (in shares) | 7,669,227 | 7,695,679 |
Treasury stock, at cost (in shares) | 86,929 | 60,477 |
1/16th nonparticipating perpetual royalty interest | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 6.25% | 6.25% |
1/128th nonparticipating perpetual royalty interest | ||
Nonparticipating perpetual royalty interest rate (in percentage) | 0.78125% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Total revenues | $ 631,595 | $ 667,422 | $ 450,958 |
Expenses: | |||
Salaries and related employee expenses | 43,384 | 41,402 | 40,012 |
Water service-related expenses | 33,566 | 17,463 | 13,233 |
General and administrative expenses | 14,928 | 13,285 | 11,638 |
Legal and professional fees | 31,522 | 8,735 | 7,281 |
Ad valorem and other taxes | 7,385 | 8,854 | 144 |
Depreciation, depletion and amortization | 14,757 | 15,376 | 16,257 |
Total operating expenses | 145,542 | 105,115 | 88,565 |
Operating income | 486,053 | 562,307 | 362,393 |
Other income, net | 31,508 | 6,548 | 624 |
Income before income taxes | 517,561 | 568,855 | 363,017 |
Current | 110,517 | 121,230 | 93,265 |
Deferred | 1,399 | 1,263 | (228) |
Income tax expense | 111,916 | 122,493 | 93,037 |
Net income | 405,645 | 446,362 | 269,980 |
Amortization of net actuarial costs, net of income taxes of $(27), $9, and $30 for the years ended December 31, 2023, 2022 and 2021, respectively | (103) | 32 | 114 |
Net actuarial (loss) gain on pension plan, net of income taxes of $(157), $931, and $418 as of December 31, 2023, 2022 and 2021, respectively | (582) | 3,491 | 1,572 |
Total other comprehensive income (loss) | (685) | 3,523 | 1,686 |
Total comprehensive income | $ 404,960 | $ 449,885 | $ 271,666 |
Net income per share of common stock | |||
Net income per share of common stock - basic (in dollars per share) | $ 52.81 | $ 57.80 | $ 34.83 |
Net income per share of common stock - diluted (in dollars per share) | $ 52.77 | $ 57.77 | $ 34.83 |
Weighted average number of shares of common stock outstanding | |||
Weighted average number of shares of common stock outstanding - basic (in shares) | 7,681,435 | 7,721,957 | 7,752,027 |
Weighted average number of shares of common stock outstanding - diluted (in shares) | 7,686,615 | 7,726,809 | 7,752,054 |
Oil and gas royalties | |||
Revenues: | |||
Total revenues | $ 357,394 | $ 452,434 | $ 286,468 |
Water sales | |||
Revenues: | |||
Total revenues | 112,203 | 84,725 | 67,766 |
Produced water royalties | |||
Revenues: | |||
Total revenues | 84,260 | 72,234 | 58,081 |
Easements and other surface-related income | |||
Revenues: | |||
Total revenues | 70,932 | 48,057 | 37,616 |
Land sales and other operating revenue | |||
Revenues: | |||
Total revenues | $ 6,806 | $ 9,972 | $ 1,027 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME AND TOTAL COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Amortization of net actuarial costs and prior service costs, income taxes | $ (27) | $ (9) | $ (30) |
Net actuarial (loss) gain on pension plan, income taxes | $ (157) | $ 931 | $ 418 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Sub-share Certificates | Common Stock | Additional Paid-in Capital | Treasury Stock | Accum. Other Comp. Income (Loss) | Retained Earnings | Net Proceeds From All Sources |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, treasury stock (in shares) | 0 | |||||||
Beginning balance (in shares) at Dec. 31, 2020 | 7,756,156 | 0 | ||||||
Beginning balance at Dec. 31, 2020 | $ 485,184 | $ 0 | $ 0 | $ 0 | $ (2,693) | $ 0 | $ 487,877 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 269,980 | 269,980 | ||||||
Conversion of sub-shares into shares of common stock (in shares) | (7,756,156) | 7,756,156 | ||||||
Conversion of Sub-shares into shares of common stock | $ 78 | 487,799 | (487,877) | |||||
Repurchase of common stock (in shares) | (14,791) | 14,791 | ||||||
Repurchases of common stock | (19,903) | $ (19,903) | ||||||
Dividends paid | (85,264) | (85,264) | ||||||
Share-based compensation, net of forfeitures (in shares) | 3,330 | |||||||
Share-based compensation, net of forfeitures | 28 | 28 | $ 4,486 | (4,486) | ||||
Share-based compensation, forfeitures (in shares) | (3,330) | |||||||
Periodic pension costs, net of income taxes | 1,686 | 1,686 | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | 7,744,695 | ||||||
Ending balance at Dec. 31, 2021 | 651,711 | $ 78 | 28 | $ (15,417) | (1,007) | 668,029 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, treasury stock (in shares) | 11,461 | |||||||
Net income | 446,362 | 446,362 | ||||||
Repurchase of common stock (in shares) | (48,959) | 48,959 | ||||||
Repurchases of common stock | (87,900) | $ (87,900) | ||||||
Dividends paid | (92,737) | (92,737) | ||||||
Special dividends paid | (154,742) | (154,742) | ||||||
Share-based compensation, net of forfeitures (in shares) | 699 | |||||||
Share-based compensation, net of forfeitures | 8,432 | 8,265 | $ 940 | (773) | ||||
Share-based compensation, forfeitures (in shares) | (699) | |||||||
Shares exchanged for tax withholdings (in shares) | (756) | 756 | ||||||
Shares exchanged for tax withholdings | (1,762) | $ (1,762) | ||||||
Periodic pension costs, net of income taxes | 3,523 | 3,523 | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | 7,695,679 | ||||||
Ending balance at Dec. 31, 2022 | $ 772,887 | $ 78 | 8,293 | $ (104,139) | 2,516 | 866,139 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, treasury stock (in shares) | 60,477 | 60,477 | ||||||
Net income | $ 405,645 | 405,645 | ||||||
Repurchase of common stock (in shares) | (27,619) | 27,619 | ||||||
Repurchases of common stock | (42,801) | $ (42,801) | ||||||
Dividends paid | (99,972) | (99,972) | ||||||
Share-based compensation, net of forfeitures (in shares) | 2,332 | |||||||
Share-based compensation, net of forfeitures | 10,186 | 6,320 | $ 4,006 | (140) | ||||
Share-based compensation, forfeitures (in shares) | (2,332) | |||||||
Shares exchanged for tax withholdings (in shares) | (1,165) | 1,165 | ||||||
Shares exchanged for tax withholdings | (2,064) | $ (2,064) | ||||||
Periodic pension costs, net of income taxes | (685) | (685) | ||||||
Ending balance (in shares) at Dec. 31, 2023 | 0 | 7,669,227 | ||||||
Ending balance at Dec. 31, 2023 | $ 1,043,196 | $ 78 | $ 14,613 | $ (144,998) | $ 1,831 | $ 1,171,672 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, treasury stock (in shares) | 86,929 | 86,929 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Periodic pension costs (benefit), net of income taxes | $ (184) | $ 940 | $ 448 |
Excise taxes paid on repurchases of common stock | $ 384 | ||
Special Dividend Paid | Sub-share Certificates | |||
Cash dividends per share of common stock (in USD per share) | $ 20 | ||
Dividends accrued per common stock (in dollars per share) | 20 | ||
Dividend Paid | |||
Cash dividends per share of common stock (in USD per share) | $ 13 | 12 | $ 11 |
Dividends accrued per common stock (in dollars per share) | $ 13 | $ 12 | $ 11 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 405,645 | $ 446,362 | $ 269,980 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 14,757 | 15,376 | 16,257 |
Share-based compensation | 10,343 | 8,432 | 28 |
Deferred taxes | 1,399 | 1,263 | 220 |
Changes in operating assets and liabilities: | |||
Operating assets, excluding income taxes | (24,457) | (13,833) | (47,603) |
Prepaid income taxes | 4,809 | (4,809) | 0 |
Income taxes payable | 1,628 | (25,916) | 25,029 |
Unearned revenue | 5,140 | 1,938 | (1,910) |
Operating liabilities, excluding income taxes | (3,240) | 10,015 | 3,152 |
Ad valorem and other taxes payable | 2,264 | 8,321 | 10 |
Cash provided by operating activities | 418,288 | 447,149 | 265,163 |
Cash flows from investing activities: | |||
Acquisition of intangible assets | (21,403) | 0 | 0 |
Acquisition of real estate | (20,320) | (633) | (535) |
Acquisition of royalty interests | (3,566) | (1,662) | 0 |
Purchase of fixed assets | (15,028) | (19,212) | (15,548) |
Proceeds from sale of fixed assets | 5 | 106 | 1,086 |
Cash used in investing activities | (60,312) | (21,401) | (14,997) |
Cash flows from financing activities: | |||
Dividends paid | (99,972) | (247,281) | (85,264) |
Repurchases of common stock | (42,573) | (87,765) | (19,684) |
Shares exchanged for tax withholdings | (2,064) | (1,762) | 0 |
Cash used in financing activities | (144,609) | (336,808) | (104,948) |
Net increase in cash, cash equivalents and restricted cash | 213,367 | 88,940 | 145,218 |
Cash, cash equivalents and restricted cash, beginning of period | 517,182 | 428,242 | 283,024 |
Cash, cash equivalents and restricted cash, end of period | 730,549 | 517,182 | 428,242 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 104,079 | 151,956 | 68,223 |
Supplemental non-cash investing and financing information: | |||
Nonmonetary exchange of assets | 880 | 4,174 | 0 |
Increase in accounts payable related to capital expenditures | 403 | (245) | 867 |
Accrued dividends on unvested stock awards | 158 | 198 | 0 |
Share repurchases and associated excise taxes not settled at the end of the period | 582 | 354 | 219 |
Issuance of common stock | 0 | 0 | 78 |
Operating lease right-of-use assets | $ 0 | $ 1,364 | $ 0 |
Organization and Description of
Organization and Description of Business Segments | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business Segments | Organization and Description of Business Segments Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as “TPL”, the “Company”, “our”, “we” or “us”) is a Delaware corporation and one of the largest landowners in the State of Texas with approximately 868,000 surface acres of land in West Texas, principally concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and gas royalty interest (“NPRI”) under approximately 85,000 acres of land, a 1/16th NPRI under approximately 371,000 acres of land, and approximately 4,000 additional net royalty acres (normalized to 1/8th) (“NRA”) for a collective total of approximately 195,000 NRA located in the western part of Texas. TPL’s income is derived primarily from oil, gas and produced water royalties, sales of water and land, easements, and commercial leases of the Company’s land. On January 11, 2021, we completed our reorganization from a business trust, Texas Pacific Land Trust (the “Trust”), organized under a Declaration of Trust dated February 1, 1888 (the “Declaration of Trust”), into Texas Pacific Land Corporation, a corporation formed and existing under the laws of the state of Delaware (the “Corporate Reorganization”). We operate our business in two segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of strategies and objectives of TPL and provide a framework for timely and rational allocation of resources within businesses. See Note 14, “Business Segment Reporting” for further information regarding our segments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include our consolidated accounts and the accounts of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. Revenue Recognition Oil and Gas Royalties Oil and gas royalties are received in connection with royalty interests owned by TPL. Oil and gas royalties are reported net of production taxes and are recognized as revenue when crude oil and natural gas products are removed from the respective mineral reserve locations. Oil and gas royalty payments are generally received one to two months after the crude oil and gas products are removed. An accrual for amounts not received during the month crude oil and natural gas products are removed is included in accounts receivable and accrued receivables, net based on historical trends. The oil and gas royalties which we receive are dependent upon the market prices for oil and gas, and locational and contractual price differences. The market prices for oil and gas are subject to national and international economic and political conditions and subject to significant price fluctuations. TPL has analyzed public reports of drilling activities by the oil companies operating where we have an oil and gas royalty interest in an effort to identify unpaid royalties associated with royalty interests we own. Rights to certain oil and gas royalties we believe to be due and payable may be subject to dispute with the oil company involved as a result of disagreements with respect to drilling and related engineering information. Disputed oil and gas royalties are recorded when these contingencies are resolved. Water Sales Water sales revenue encompasses sales of water to operators and other customers, royalties received related to areas of mutual interest (“AMI”), and royalties received pursuant to legacy agreements with operators. In certain instances, we enter into agreements with third parties to provide various water services, including but not limited to, the purchase, sale or transfer of water within a specific geographic area, also known as an AMI. Our performance obligation is deemed satisfied upon the delivery of water at which point, revenue is recognized. In instances where a third party other than the customer is involved in the sale and/or transport of water, such as a revenue share agreement, brokered water sale transaction or third party acquisition of water, the Company will either be acting as the principal or the agent in the water sales transaction. If the Company is deemed to be acting as a principal, the associated revenues are reported on a gross basis in water sales revenue and the corresponding costs associated with the sale are reported as an operating expense in water service-related expenses in the consolidated income statement. If the Company is deemed to be acting as an agent, principally in brokered water transactions, the associated water sales revenue is reported net of the corresponding costs associated with the sale and included in the water sales revenue line item on the consolidated income statement. Purchases of water from third parties, transfer costs and treatment expenses associated with water sales are included in water service-related expenses. Produced Water Royalties Produced water royalties represent revenue from the transfer and disposal of saltwater from producing oil and gas wells on our land. Revenue is recognized when the water is transported across or injected into our land. Easements and Other Surface-Related Income Easement contracts represent contracts which permit companies to install pipelines, electric lines and other equipment on land owned by TPL. When TPL receives a signed contract and payment, we make available the respective parcel of land to the grantee. Easement income is recognized upon the execution of the easement agreement, or in the event of a renewal upon receipt of the renewal payment, as at that point in time, we have satisfied our performance obligation and the customer has right of use. Leases of our surface acreage include, but are not limited to, facility, roadway and surface leases with a typical lease term of ten years and generally require fixed annual payments. Lease cancellations are allowed under certain circumstances, but initial lease deposits are generally nonrefundable. The initial lease deposits and annual payments are recorded as unearned revenue upon receipt and amortized over the life of the lease. Advance lease payments are deferred and amortized over the appropriate accounting period. Other surface-related income includes revenue from permits, material sales, and renewable energy sources. Revenue from permits is recognized upon execution of the contract and receipt of payment. Revenue from material sales is recognized upon the removal of materials by the customer. Revenue from renewable energy sources, such as wind and solar power, generally consist of leases, some of which may include a provision for future royalties once certain circumstances occur. As discussed above, lease payments are recorded as unearned revenue and amortized over the life of the lease. Royalties are recognized based upon actual production. Land Sales and Exchanges We consider purchasers of land to be our customers as land management, leasing and sales are normal operating activities for TPL. Revenue is recognized on land sales when the performance obligation to the purchaser (customer) is complete. Revenue from land exchanges is recognized based upon the estimated fair value of the consideration exchanged. Cash, Cash Equivalents and Restricted Cash We consider investments in bank deposits, money market funds, and highly-liquid cash investments with original maturities of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands): December 31, December 31, 2022 Cash and cash equivalents $ 725,169 $ 510,834 Tax like-kind exchange escrow 5,380 6,348 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 730,549 $ 517,182 Receivables Receivables consist primarily of royalty income due related to our oil, gas and produced water royalties and trade accounts receivable related to water and material sales. An allowance is recorded for expected credit losses and is based upon our historical write-off experience, aging of trade accounts receivable and collectability patterns of our customers. The allowance for expected credit loss was approximately $0.2 million as of December 31, 2023 and 2022, respectively. Accrual of Oil and Gas Royalties The Company accrues oil and gas royalties, which are included in accounts receivable and accrued receivables, net. An accrual is necessary due to the time lag between the removal of crude oil and natural gas products from the respective mineral reserve locations and generation of the actual payment by operators. The oil and gas royalty accrual is based upon historical production volumes, estimates of the timing of future payments and recent market prices for oil and gas. Accrued oil and gas royalties included in accounts receivable and accrued receivables, net totaled $52.2 million and $50.1 million as of December 31, 2023 and 2022, respectively. Real Estate Acquired Real estate acquired is recorded at cost and carried at the lower of cost or market. Valuations are periodically performed or obtained by management whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments, if any, are recorded by a charge to net income and a valuation allowance if the carrying value of the property exceeds its estimated fair value. Minimal real estate improvements are made to land. No impairments were recorded for the years ended December 31, 2023, 2022 and 2021. Property, Plant and Equipment Property, plant and equipment is carried at cost less accumulated depreciation. Maintenance and repair costs are expensed as incurred. Costs associated with our development of infrastructure for sourcing and treating water are capitalized. We account for depreciation of property, plant and equipment on the straight-line method over the estimated useful lives of the assets. Depreciable lives by category are as follows: Range of Estimated Useful Lives (in years) Water wells and other water-related assets 3 to 20 Furniture, fixtures and equipment 3 to 15 Royalty Interests Acquired We follow the successful efforts method of accounting for our royalty interests acquired, which are carried at the lower of cost or market. Valuations are periodically performed or obtained by management whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments, if any, are recorded by a charge to net income and a reduction in the carrying value of our royalty interests if the carrying value exceeds the estimated fair value. No impairments were recorded for the years ended December 31, 2023, 2022 and 2021. Depletion is recorded based upon a units of production basis. Depletion expense was approximately $2.0 million, $1.0 million and $1.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. Real Estate and Royalty Interests Assigned Through the Declaration of Trust The fair market value of the land and royalty interests that were assigned through the Declaration of Trust (referred to as “Assigned” land and royalty interests) was not determined in 1888 when the Trust was formed; therefore, no value is assigned in the accompanying consolidated balance sheets to the Assigned land and royalty interests. Consequently, in the consolidated statements of income and total comprehensive income, no allowance is made for depletion and no cost is deducted from the proceeds of sales of the Assigned land and royalty interests. Even though the 1888 value of real properties cannot be precisely determined, it has been concluded that the effect of this matter can no longer be significant to our financial position or results of operations. Minimal real estate improvements are made to land. Intangible Assets, Net Intangible assets include a saltwater disposal easement and acquired groundwater rights. When the Company acquires intangible assets that are attached to real estate and/or other tangible assets, an allocation of the total purchase price, including any direct costs of the acquisition, is made at the date of acquisition based on the estimated relative fair values of the assets acquired. Intangible assets are amortized on a straight-line basis over their estimated useful lives ranging from 15 to 20 years. Intangible assets are tested for recoverability whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In such event, the fair value of the asset is determined using an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, a loss for the difference between the carrying value and the estimated fair value of the intangible asset is recognized in the statement of income. Leases We lease certain facilities under operating leases. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include our administrative offices located in Dallas and Midland, Texas, as well as some modular buildings in our West Texas yards. Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all of the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. Short-term leases with an initial term of 12 months or less are not recognized in the right-to-use asset and lease liability on the consolidated balance sheets. The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee. For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payments for items such as common area maintenance and parking. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. See Note 12, “Commitments” for additional information. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The liability for unrecognized tax benefits is zero as of December 31, 2023 and 2022. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of income and total comprehensive income. Share-Based Compensation The Company utilizes the closing stock price on the date of grant to determine the fair value of stock awards and service-vesting awards, which for the Company includes stock awards, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) with a performance condition. For PSUs with a market condition, grant date fair value is determined using a Monte Carlo simulation model. Unvested awards are entitled to dividends or dividend equivalents which are accrued and distributed to award recipients at the time such awards vest. Dividends are forfeitable if the related award is forfeited. For RSAs, RSUs and PSUs with performance conditions, forfeitures are recognized in the period in which they occur. For PSU awards with market conditions, forfeitures are only recognized if the award recipient does not render the required service during the measurement period. Share-based compensation expense for stock awards is recognized in the financial statements immediately on date of grant as there is no requisite service period. Share-based compensation expense for RSUs and RSAs is recognized in the financial statements over the awards’ vesting periods using the graded-vesting method. Share-based compensation expense for PSU awards with performance conditions is recognized ratably over the measurement period at such time as the awards are probable and estimable. Share-based compensation expense for PSU awards with market conditions is recognized ratably over the measurement period whether the market condition is satisfied or not if the service for the award is rendered. Share-based compensation is reported on the consolidated statements of income and total comprehensive income as a component of salaries and related employee expenses for employee awards and in general and administrative expenses for director awards. Net Income Per Share Basic income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is computed based upon the weighted average number of shares outstanding during the period plus unvested shares issued pursuant to our equity and deferred compensation plans. See Note 11, “Earnings Per Share.” Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired Common Stock is recorded as treasury stock. The cost associated with issuance of treasury stock is based on the average cost of treasury stock as of the date of issuance. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other gains and losses affecting capital that, under GAAP, are excluded from net income. Concentrations of Credit Risk We invest our cash and cash equivalents (which include U.S. Treasury bills, money market funds, and commercial paper with maturities of three months or less) among two major financial institutions in an attempt to minimize exposure to risk from any one of these entities. As of December 31, 2023 and 2022, we had cash and cash equivalents deposited in our financial institutions in excess of federally-insured levels. We regularly monitor the financial condition of these financial institutions and believe that we are not exposed to any significant credit risk in cash and cash equivalents. Significant Customers Three customers represented, in the aggregate, 42.5% of TPL’s total revenues for the year ended December 31, 2023. Four customers represented, in the aggregate, 51.8% of TPL’s total revenues for the year ended December 31, 2022. Three customers represented, in the aggregate, 41.0% of TPL’s total revenues for the year ended December 31, 2021. Reclassifications Certain financial information on the consolidated balance sheet as of December 31, 2022 and consolidated statement of income and total comprehensive income for the year ended December 31, 2022 and December 31, 2021, respectively, have been revised to conform to the current year presentation. These revisions include a balance sheet reclassification of $454,000 of other taxes payable previously included in accounts payable and accrued expenses to ad valorem and other taxes payable, an income statement reclassification of $120,000 of property taxes previously included in general and administrative expenses to ad valorem and other taxes, an income statement reclassification of $55,000 from land sales expenses to general and administrative expenses for the year ended December 31, 2022 and an income statement reclassification of $144,000 of property taxes previously included in general and administrative expenses to ad valorem and other taxes for the year ended December 31, 2021. |
Real Estate Activity
Real Estate Activity | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Real Estate Activity | Real Estate Activity As of December 31, 2023 and 2022, TPL owned the following land and real estate (in thousands, except number of acres): December 31, December 31, Number of Acres Net Book Value Number of Acres Net Book Value Land (surface rights) (1) 798,999 $ — 817,060 $ — Real estate acquired 69,447 130,024 57,306 109,704 Total real estate situated in Texas 868,446 $ 130,024 874,366 $ 109,704 (1) Real estate assigned through the Declaration of Trust. The Assigned land held by TPL was recorded with no value at the time of acquisition. See Note 2, “Summary of Significant Accounting Policies — Real Estate and Royalty Interests Assigned Through the Declaration of Trust” for further information regarding the Assigned land. Real estate acquired includes land parcels which have either been acquired through foreclosure or transactions with third parties. Land Sales For the year ended December 31, 2023, we sold 18,061 acres of land in Texas for an aggregate sales price of $6.8 million. For the year ended December 31, 2022, we sold 6,392 acres of land in Texas for an aggregate sales price of $9.7 million. For the year ended December 31, 2021, we sold 30 acres of land in Texas for an aggregate sales price of approximately $0.7 million. Land Acquisitions For the year ended December 31, 2023, we acquired 12,141 acres of land in Texas for an aggregate purchase price of $20.0 million. For the year ended December 31, 2022, we acquired 177 acres of land in Texas for an aggregate purchase price of $0.6 million. For the year ended December 31, 2021, we acquired 88 acres of land in Texas for an aggregate purchase price of approximately $0.5 million. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net consisted of the following as of December 31, 2023 and 2022 (in thousands): December 31, December 31, Property, plant and equipment, at cost: Water service-related assets $ 136,340 $ 125,166 Furniture, fixtures and equipment 9,801 9,718 Other 598 598 Total property, plant and equipment, at cost 146,739 135,482 Less: accumulated depreciation (57,152) (50,004) Property, plant and equipment, net $ 89,587 $ 85,478 Depreciation expense was $12.2 million, $14.2 million and $14.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Oil and Gas Royalty Interests
Oil and Gas Royalty Interests | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Oil and Gas Royalty Interests | Oil and Gas Royalty Interests As of December 31, 2023 and 2022, we owned the following oil and gas royalty interests (in thousands): December 31, December 31, Oil and gas royalty interests: 1/16th nonparticipating perpetual royalty interests (1) $ — $ — 1/128th nonparticipating perpetual royalty interests (2) — — Royalty interests acquired, at cost (3) 51,494 47,928 Total royalty interests 51,494 47,928 Less: accumulated depletion (4,885) (2,903) Royalty interests, net $ 46,609 $ 45,025 (1) Nonparticipating perpetual royalty interests in 370,737 gross royalty acres as of December 31, 2023 and 2022. (2) Nonparticipating perpetual royalty interests in 84,934 gross royalty acres as of December 31, 2023 and 2022. (3) Royalty interest in 4,302 and 4,182 net royalty acres as of December 31, 2023 and 2022, respectively. Royalty Interests Assigned Through the Declaration of Trust The fair market value of the Trust’s Assigned royalty interests was not determined in 1888 when the Trust was formed, and accordingly, these Assigned royalty interests were recorded with no value. See Note 2, “Summary of Significant Accounting Policies — Real Estate and Royalty Interests Assigned Through the Declaration of Trust” for further information regarding the Assigned royalty interests. The Assigned royalty interests include 1/16th and 1/128th royalty interests. Royalty Interest Transactions For the year ended December 31, 2023, we acquired oil and gas royalty interests in 119 net royalty acres (normalized to 1/8th) for an aggregate purchase price of approximately $3.6 million. For the year ended December 31, 2022, we acquired oil and gas royalty interests in 92 net royalty acres (normalized to 1/8th) for an aggregate purchase price of approximately $1.7 million. There were no oil and gas royalty interest transactions for the year ended December 31, 2021. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets, net consisted of the following as of December 31, 2023 and 2022 (in thousands): December 31, December 31, Intangible assets, at cost: Saltwater disposal easement $ 17,557 $ — Groundwater rights acquired 3,846 — Total intangible assets, at cost (1) 21,403 — Less: accumulated amortization (378) — Intangible assets, net $ 21,025 $ — (1) The remaining weighted average amortization period for total intangible assets was 18.8 years as of December 31, 2023. Acquisitions For the year ended December 31, 2023, we acquired a saltwater disposal easement and groundwater rights in separate transactions for an aggregate cost of approximately $21.4 million. We had no intangible assets as of December 31, 2022. Amortization of intangible assets was $0.4 million for the year ended December 31, 2023. The estimated future annual amortization expense of intangible assets is $1.1 million for each year of 2024 through 2028, and $15.5 million thereafter. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits TPL has a defined contribution plan available to all eligible employees. Qualifying participants may receive a matching contribution based on the amount participants contribute to the plan up to 6% of their qualifying compensation. TPL contributed approximately $0.8 million, $0.7 million and $0.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. TPL has a noncontributory pension plan (the “Pension Plan”) available to all eligible employees who have completed one year of continuous service with TPL during which they completed at least 1,000 hours of service. The Pension Plan provides for a normal retirement benefit at age 65. Contributions to the Pension Plan reflect benefits accrued with respect to participants’ services to date, as well as the amount actuarially determined to pay lifetime benefits to participants and their beneficiaries upon retirement. The following table sets forth the Pension Plan’s changes in benefit obligation, changes in fair value of assets, and funded status as of December 31, 2023 and 2022 using a measurement date of December 31 (in thousands): December 31, 2023 December 31, 2022 Change in projected benefits obligation: Projected benefit obligation at beginning of year $ 8,177 $ 11,324 Service cost 1,537 2,870 Interest cost 423 336 Actuarial gain (loss) 658 (6,111) Benefits paid (242) (242) Projected benefit obligation at end of year $ 10,553 $ 8,177 Change in Pension Plan assets: Fair value of Pension Plan assets at beginning of year $ 11,650 $ 10,713 Actual return on Pension Plan assets 725 (947) Contributions by employer 2,068 2,126 Benefits paid (242) (242) Fair value of Pension Plan assets at end of year 14,201 11,650 Funded status at end of year $ 3,648 $ 3,473 The projected Pension Plan benefit obligation as of December 31, 2023 was impacted by changes in assumptions used as of that date compared to assumptions used as of December 31, 2022. These changes included a decrease in the discount rate from 5.25% as of December 31, 2022 to 5.00% as of December 31, 2023. The effect of the assumption changes was an increase in the projected benefit obligation of approximately $0.6 million. Amounts recognized in the balance sheets as of December 31, 2023 and 2022 consist of (in thousands): December 31, 2023 December 31, 2022 Assets $ 3,648 $ 3,473 Liabilities — — $ 3,648 $ 3,473 Amounts recognized in accumulated other comprehensive income on the Consolidated Balance Sheets consist of the following as of December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Net actuarial gain $ 2,319 $ 3,189 Amounts recognized in accumulated other comprehensive income, before taxes 2,319 3,189 Income tax expense (488) (673) Amounts recognized in accumulated other comprehensive income, after taxes $ 1,831 $ 2,516 Net periodic benefit cost for the years ended December 31, 2023, 2022 and 2021 include the following components (in thousands): Years Ended December 31, 2023 2022 2021 Components of net periodic benefit cost: Service cost $ 1,537 $ 2,870 $ 3,225 Interest cost 423 336 264 Expected return on Pension Plan assets (807) (741) (521) Recognized actuarial (gain) loss (130) 41 144 Net periodic benefit cost $ 1,023 $ 2,506 $ 3,112 Service cost, a component of net periodic benefit cost, is reflected in our consolidated statements of income and total comprehensive income within salaries and related employee expenses. The other components of net periodic benefit cost are included in other income, net Other changes in Pension Plan assets and benefit obligations recognized in other comprehensive (income) loss for the years ended December 31, 2023, 2022 and 2021 (in thousands): Years Ended December 31, 2023 2022 2021 Net actuarial (gain) loss $ 739 $ (4,422) $ (1,990) Recognized actuarial gain (loss) 130 (41) (144) Total recognized in other comprehensive (income) loss, before taxes $ 869 $ (4,463) $ (2,134) Total recognized in net benefit cost and other comprehensive (income) loss, before taxes $ 1,892 $ (1,958) $ 978 TPL reclassified less than $0.6 million (net of income tax benefit of less than $0.2 million) out of accumulated other comprehensive loss for net periodic benefit cost to other income, net for the year ended December 31, 2023, $0.4 million (net of income tax benefit of less than $0.1 million) for the year ended December 31, 2022 and $0.2 million (net of income tax benefit of less than $0.1 million) for the year ended December 31, 2021. The following table summarizes the projected benefit obligation in excess of Pension Plan assets and Pension Plan assets in excess of accumulated benefit obligation as of December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Projected benefit obligation in excess of Pension Plan assets: Projected benefit obligation $ 10,553 $ 8,177 Fair value of Pension Plan assets $ 14,201 $ 11,650 Plan assets in excess of accumulated benefit obligation: Accumulated benefit obligation $ 6,417 $ 5,277 Fair value of Pension Plan assets $ 14,201 $ 11,650 The following are weighted-average assumptions used to determine benefit obligations and costs as of December 31, 2023, 2022 and 2021: Years Ended December 31, 2023 2022 2021 Weighted average assumptions used to determine benefit obligations as of December 31: Discount rate 5.00 % 5.25 % 3.00 % Rate of compensation increase 7.29 % 7.29 % 7.29 % Weighted average assumptions used to determine benefit costs for the years ended December 31: Discount rate 5.25 % 3.00 % 2.75 % Expected return on Pension Plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase 7.29 % 7.29 % 7.29 % The expected return on Pension Plan assets assumption of 7.0% was selected by TPL based on historical real rates of return for the current asset mix and an assumption with respect to future inflation. The rate was determined based on a long-term allocation of about two-thirds fixed income and one-third equity securities; historical real rates of return of about 2.5% and 8.5% for fixed income and equity securities, respectively; and assuming a long-term inflation rate of 2.5%. The Pension Plan has a formal investment policy statement. The Pension Plan’s investment objective is balanced income, with a moderate risk tolerance. This objective emphasizes current income through a 30.0% to 80.0% allocation to fixed income securities, complemented by a secondary consideration for capital appreciation through an equity allocation in the range of 20.0% to 60.0%. Diversification is achieved through investment in equities and bonds. The asset allocation is reviewed annually with respect to the target allocations and rebalancing adjustments and/or target allocation changes are made as appropriate. Our current funding policy is to maintain the Pension Plan’s fully funded status on an ERISA minimum funding basis. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The fair value accounting standards establish a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs used in measuring fair value, as follows: Level 1 – Inputs are based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Since inputs are based on quoted prices that are readily and regularly available in an active market, Level 1 inputs require the least judgment. Level 2 – Inputs are based on quoted prices for similar instruments in active markets, or are observable either directly or indirectly. Inputs are obtained from various sources including financial institutions and brokers. Level 3 – Inputs that are unobservable and significant to the overall fair value measurement. The degree of judgment exercised by us in determining fair value is greatest for fair value measurements categorized in Level 3. The fair values of the Pension Plan assets by major asset category as of December 31, 2023 and 2022, are as follows (in thousands): Total Quoted Prices in Significant Other Significant As of December 31, 2023: Cash and cash equivalents — money markets $ 1,179 $ 1,179 $ — $ — Equities 8,182 8,182 — — Equity funds 401 401 — — Fixed income funds 1,000 1,000 — — Taxable bonds 3,439 3,439 — — Total $ 14,201 $ 14,201 $ — $ — As of December 31, 2022: Cash and cash equivalents — money markets $ 2,571 $ 2,571 $ — $ — Equities 392 392 — — Equity funds 2,884 2,884 — — Fixed income funds 598 598 — — Taxable bonds 5,205 5,205 — — Total $ 11,650 $ 11,650 $ — $ — Management intends to at least fund the minimum ERISA amount for 2024 and may make some discretionary contributions to the Pension Plan, the amounts of which have not yet been determined. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the following ten-year period (in thousands): Year ending December 31, Amount 2024 $ 261 2025 257 2026 257 2027 263 2028 329 2029 to 2033 2,059 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company grants share-based compensation to employees under the Texas Pacific Land Corporation 2021 Incentive Plan (the “2021 Plan”) and to its non-employee directors under the 2021 Non-Employee Director Stock and Deferred Compensation Plan (the “2021 Directors Plan”). As of December 31, 2023, share-based compensation granted under the plans has included these award types: stock awards, RSAs, RSUs and PSUs. Currently, all awards granted under the plans are entitled to receive dividends (which are accrued and distributed to award recipients upon vesting) or have dividend equivalent rights. Dividends and dividend equivalent rights are subject to the same vesting conditions as the awards to which they relate and are forfeitable if the related awards are forfeited. RSUs granted under the 2021 Plan vest in one-third increments and PSUs granted under the 2021 Plan cliff vest at the end of three years if the performance metrics are achieved (as discussed further below). RSAs granted under the 2021 Directors Plan vest on the first anniversary of the award. Effective October 31, 2023, the 2021 Directors Plan was amended to eliminate vesting requirements on stock awards granted after October 31, 2023. Incentive Plan for Employees The maximum aggregate number of shares of the Company’s Common Stock that may be issued under the 2021 Plan is 75,000 shares, which may consist, in whole or in part, of authorized and unissued shares (if any), treasury shares, or shares reacquired by the Company in any manner. As of December 31, 2023, 55,089 shares of Common Stock remained available under the 2021 Plan for future grants. The following table summarizes activity related to RSAs and RSUs under the 2021 Plan for the years ended December 31, 2023 and 2022: Years Ended December 31, 2023 2022 Restricted Stock Awards (1) Restricted Stock Units (2) Restricted Stock Awards (1) Restricted Stock Units (2) Number of RSAs Weighted-Average Grant-Date Fair Value per Share Number of RSUs Weighted-Average Grant-Date Fair Value per Share Number of RSAs Weighted-Average Grant-Date Fair Value per Share Number of RSUs Weighted-Average Grant-Date Fair Value per Share Nonvested at beginning of period 1,337 $ 1,252 5,612 $ 1,323 3,330 $ 1,252 — $ — Granted — — 2,848 1,924 — — 5,612 1,323 Vested (3) (1,297) 1,252 (1,864) 1,324 (1,993) 1,252 — — Cancelled and forfeited (40) 1,252 (371) 1,602 — — — — Nonvested at end of period — $ — 6,225 $ 1,581 1,337 $ 1,252 5,612 $ 1,323 (1) RSAs were granted on December 29, 2021: 1,993 shares vested on December 29, 2022, 40 shares were forfeited during 2023 and 1,297 shares vested on December 29, 2023. (2) RSUs vest in one-third increments over a three-year period. (3) Of the 3,161 shares that vested during the year ended December 31, 2023, 1,165 shares were surrendered upon vesting by employees to the Company to settle tax withholding obligations. The following table summarizes activity related to PSUs for the years ended December 31, 2023 and 2022: Years Ended December 31, 2023 2022 Number of Target PSUs Weighted-Average Grant-Date Fair Value per Share Number of Target PSUs Weighted-Average Grant-Date Fair Value per Share Nonvested at beginning of period (1) 2,394 $ 1,355 — $ — Granted (2) 1,852 2,342 2,394 1,355 Vested — — — — Cancelled and forfeited — — — — Nonvested at end of period 4,246 $ 1,786 2,394 $ 1,355 (1) The PSUs were granted on February 11, 2022 and include 1,197 RTSR (as defined below) PSUs (based on target) with a grant date fair value of $1,605 per share and 1,197 FCF (as defined below) PSUs (based on target) with a grant date fair value of $1,105 per share. If the maximum performance potential metrics described in the PSU agreements are achieved, the actual number of units that will ultimately be awarded under the PSU agreements will exceed target units by 100% (i.e., a collective 2,394 additional units would be issued). (2) The PSUs were granted on February 10, 2023 and include 926 RTSR PSUs (based on target) with a grant date fair value of $2,761 per share and 926 FCF PSUs (based on target) with a grant date fair value of $1,924 per share. If the maximum performance potential metrics described in the PSU agreements are achieved, the actual number of units that will ultimately be awarded under the PSU agreements will exceed target units by 100% (i.e., a collective 1,852 additional units would be issued). Each PSU has a value equal to one share of Common Stock. The PSUs will vest three years after grant if certain performance metrics are met, as follows: 50% of the PSUs may be earned based on the Company’s relative total stockholder return (“RTSR”) over the applicable three-year measurement period compared to the SPDR ® S&P ® Oil & Gas Exploration & Production ETF (“XOP”) Index, and 50% of the PSUs may be earned based on the cumulative free cash flow per share (“FCF”) over the three-year vesting period. As the RTSR PSU is a market-based award, its grant date fair value was determined using a Monte Carlo simulation model that uses the same input assumptions as the Black-Scholes model to determine the expected potential ranking of the Company against the XOP Index, i.e., the probability of satisfying the market condition defined in the award. Expected volatility in the model was estimated based on the volatility of historical stock prices over a period matching the expected term of the award. The risk-free interest rate was based on U.S. Treasury yield constant maturities for a term matching the expected term of the award. Equity Plan for Non-Employee Directors The maximum aggregate number of shares of Common Stock that may be issued under the 2021 Directors Plan is 10,000 shares, which may consist, in whole or in part, of authorized and unissued shares (if any), treasury shares, or shares reacquired by the Company in any manner. As of December 31, 2023, 8,793 shares of Common Stock remained available under the 2021 Directors Plan for future grants. The following table summarizes activity related to the RSAs under the 2021 Directors Plan for the years ended December 31, 2023 and 2022: Years Ended December 31, 2023 2022 Restricted Stock Awards Restricted Stock Awards Number of RSAs Weighted-Average Grant-Date Fair Value per Share Number of RSAs Weighted-Average Grant-Date Fair Value per Share Nonvested at beginning of period 699 $ 1,281 — $ — Granted (1) 486 2,344 784 1,277 Vested (807) 1,423 — — Cancelled and forfeited — — (85) 1,249 Nonvested at end of period 378 $ 2,344 699 $ 1,281 (1) RSAs vest on the first anniversary of the grant date. As noted above, there are no vesting requirements associated with stock awards granted under the 2021 Directors Plan effective for awards granted subsequent to October 31, 2023. In November 2023, the Company granted a total of 22 shares of Common Stock to two new members of the Company’s board of directors. The grant date fair value was $1,641 per share, the closing price of its Common Stock as of November 10, 2023. Share-Based Compensation Expense The following table summarizes our share-based compensation expense by line item in the consolidated statements of income (in thousands): Years Ended December 31, 2023 2022 2021 Salaries and related employee expenses (employee awards) $ 9,124 $ 7,583 $ 28 General and administrative expenses (director awards) 1,219 849 — Total share-based compensation expense (1) $ 10,343 $ 8,432 $ 28 (1) The Company recognized a tax benefit of $2.2 million and $1.8 million related to share-based compensation for the years ended December 31, 2023 and 2022, respectively. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net Other income, net, includes interest earned on our cash balances, other employee pension costs, and other miscellaneous income (expense). Miscellaneous income (expense) includes insurance proceeds and gains and losses on disposals of capital assets. Other income, net for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands): Years Ended December 31, 2023 2022 2021 Other income, net: Interest earned on cash and cash equivalents, net $ 28,630 $ 6,207 $ 78 Other employee pension costs 514 363 113 Miscellaneous other income (expense), net (1) 2,364 (22) 433 Total other income, net $ 31,508 $ 6,548 $ 624 (1) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision charged to operations for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands): Years Ended December 31, 2023 2022 2021 Current: U.S. Federal $ 106,721 $ 117,395 $ 90,920 State and local 3,796 3,835 2,345 Current income tax expense 110,517 121,230 93,265 Deferred (benefit) expense 1,399 1,263 (228) Total income tax expense $ 111,916 $ 122,493 $ 93,037 Although TPL was a trust until January 11, 2021, it was historically taxed as if it were a corporation for income tax purposes prior to its conversion to a corporation. Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21% for the years ended December 31, 2023, 2022 and 2021 to income before Federal income taxes as a result of the following (in thousands): Years Ended December 31, 2023 2022 2021 Computed tax expense at the statutory rate of 21% $ 108,688 $ 119,460 $ 76,234 Reduction in income taxes resulting from: Statutory depletion (682) (823) (584) State taxes 3,439 3,045 1,740 Executive compensation 1,117 1,146 1,687 Prior year tax adjustments (305) (13) 18 Correction of historical tax depletion — 805 12,975 Estimated penalties and interest — (763) 1,022 Other, net (341) (364) (55) Total income tax expense $ 111,916 $ 122,493 $ 93,037 Effective tax rate 21.6 % 21.5 % 25.6 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in thousands): December 31, 2023 December 31, 2022 Unearned revenue $ 6,717 $ 5,621 Stock compensation 2,097 1,256 Other 760 48 Total deferred tax assets 9,574 6,925 Property, plant and equipment 17,532 16,958 Real estate and royalty interests 33,215 30,387 Pension plan asset 767 731 Other, net 425 — Total deferred tax liabilities 51,939 48,076 Deferred taxes payable $ (42,365) $ (41,151) TPL is subject to taxation in the United States and Texas. TPL is no longer subject to U.S. Federal income tax examination by tax authorities for tax years before 2020. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares outstanding during the period. Diluted EPS is computed based upon the weighted average number of shares outstanding during the period plus unvested restricted stock and other unvested awards granted pursuant to our incentive and equity compensation plans. The computation of diluted EPS reflects the potential dilution that could occur if all outstanding awards under the incentive and equity compensation plans were converted into shares of Common Stock or resulted in the issuance of shares of Common Stock that would then share in the earnings of the Company. The number of dilutive securities is computed using the treasury stock method. The following table sets forth the computation of EPS for the years ended December 31, 2023, 2022 and 2021 (in thousands, except number of shares and per share data): Years Ended December 31, 2023 2022 2021 Net income $ 405,645 $ 446,362 $ 269,980 Basic earnings per share: Weighted average shares outstanding for basic earnings per share 7,681,435 7,721,957 7,752,027 Basic earnings per share $ 52.81 $ 57.80 $ 34.83 Diluted earnings per share: Weighted average shares outstanding for basic earnings per share 7,681,435 7,721,957 7,752,027 Effect of Dilutive securities: Stock-based incentive plan 5,180 4,852 27 Weighted average shares outstanding for diluted earnings per share 7,686,615 7,726,809 7,752,054 Diluted earnings per share $ 52.77 $ 57.77 $ 34.83 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Litigation Management is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the Company’s financial condition, results of operations or liquidity as of December 31, 2023. Prior to January 1, 2022, ad valorem taxes with respect to our historical royalty interests were paid directly by third parties pursuant to an existing arrangement. Since the completion of our Corporate Reorganization, we have received notice from a third party that they no longer intend to pay the ad valorem taxes related to such historical royalty interests. In order to protect the historical royalty interests from any potential tax liens for non-payment of ad valorem taxes, we have accrued and/or paid such ad valorem taxes since January 1, 2022. While we intend to seek reimbursement from the third party for such taxes, we are unable to estimate the amount and/or likelihood of such reimbursement, and accordingly, no loss recovery receivable has been recorded as of December 31, 2023. Ongoing Arbitration with an Operator As part of an ongoing arbitration between TPL and an operator with respect to underpayment of oil and gas royalties resulting from improper deductions of post-production costs by the operator for production periods before and through June 2023, the operator has agreed to pay $10.1 million to TPL, comprised of $8.7 million of unpaid oil and gas royalties, $0.9 million of interest and $0.5 million of damages. The full amount of $10.1 million has been recorded as a receivable, $8.7 million has been included in oil and gas royalty revenue and the remaining $1.4 million has been recorded as other income in the consolidated financial statements for the year ended December 31, 2023. The Company received payment from the operator for the full amount in January 2024. Lease Commitments As of December 31, 2023 and 2022, we have recorded right-of-use assets of $1.9 million and $2.5 million, respectively, and lease liabilities for $2.0 million and $2.8 million, respectively, primarily related to operating leases in connection with our administrative offices located in Dallas and Midland, Texas. The office lease agreements require monthly rent payments and expire in December 2025 and July 2027, respectively. Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease cost for each of the years ended December 31, 2023 and 2022 was $0.8 million. While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations. There are no residual value guarantees in our lease commitments. The weighted-average lease term for our operating lease liabilities is approximately 33 months. The weighted average discount rate of our operating leases is 4.7%. Future minimum lease payments were as follows as of December 31, 2023 (in thousands): Year ending December 31, Amount 2024 $ 854 2025 826 2026 316 2027 187 Total lease payments 2,183 Less: imputed interest (159) Total operating lease liabilities $ 2,024 Rent expense for these lease agreements amounted to approximately $0.8 million for each of the years ended December 31, 2023, 2022 and 2021. |
Commitments | Commitments Litigation Management is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the Company’s financial condition, results of operations or liquidity as of December 31, 2023. Prior to January 1, 2022, ad valorem taxes with respect to our historical royalty interests were paid directly by third parties pursuant to an existing arrangement. Since the completion of our Corporate Reorganization, we have received notice from a third party that they no longer intend to pay the ad valorem taxes related to such historical royalty interests. In order to protect the historical royalty interests from any potential tax liens for non-payment of ad valorem taxes, we have accrued and/or paid such ad valorem taxes since January 1, 2022. While we intend to seek reimbursement from the third party for such taxes, we are unable to estimate the amount and/or likelihood of such reimbursement, and accordingly, no loss recovery receivable has been recorded as of December 31, 2023. Ongoing Arbitration with an Operator As part of an ongoing arbitration between TPL and an operator with respect to underpayment of oil and gas royalties resulting from improper deductions of post-production costs by the operator for production periods before and through June 2023, the operator has agreed to pay $10.1 million to TPL, comprised of $8.7 million of unpaid oil and gas royalties, $0.9 million of interest and $0.5 million of damages. The full amount of $10.1 million has been recorded as a receivable, $8.7 million has been included in oil and gas royalty revenue and the remaining $1.4 million has been recorded as other income in the consolidated financial statements for the year ended December 31, 2023. The Company received payment from the operator for the full amount in January 2024. Lease Commitments As of December 31, 2023 and 2022, we have recorded right-of-use assets of $1.9 million and $2.5 million, respectively, and lease liabilities for $2.0 million and $2.8 million, respectively, primarily related to operating leases in connection with our administrative offices located in Dallas and Midland, Texas. The office lease agreements require monthly rent payments and expire in December 2025 and July 2027, respectively. Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease cost for each of the years ended December 31, 2023 and 2022 was $0.8 million. While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations. There are no residual value guarantees in our lease commitments. The weighted-average lease term for our operating lease liabilities is approximately 33 months. The weighted average discount rate of our operating leases is 4.7%. Future minimum lease payments were as follows as of December 31, 2023 (in thousands): Year ending December 31, Amount 2024 $ 854 2025 826 2026 316 2027 187 Total lease payments 2,183 Less: imputed interest (159) Total operating lease liabilities $ 2,024 Rent expense for these lease agreements amounted to approximately $0.8 million for each of the years ended December 31, 2023, 2022 and 2021. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity Corporate Reorganization On January 11, 2021, TPL completed its Corporate Reorganization. As part of the implementation of the Corporate Reorganization, prior to the market opening on January 11, 2021, the Trust distributed all of the shares of Common Stock of TPL Corporation to holders of Sub-shares of the Trust, on a pro rata, one-for-one, basis in accordance with their interests in the Trust (the “Distribution”). As a result of the Distribution, TPL Corporation is a corporation with its Common Stock listed under the symbol “TPL” on the New York Stock Exchange. Stock Repurchase Program On November 1, 2022, our board of directors approved a stock repurchase program, which became effective January 1, 2023, to purchase up to an aggregate of $250 million of our outstanding Common Stock. The Company repurchases stock under a repurchase program opportunistically with funds generated by cash from operations. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. Purchases under the stock repurchase program may be made through a combination of open market repurchases in compliance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, privately negotiated transactions, and/or other transactions at the Company’s discretion, including under a Rule 10b5-1 trading plan implemented by the Company, and will be subject to market conditions, applicable legal requirements and other factors. For the year ended December 31, 2023, we repurchased 27,619 shares of Common Stock totaling $42.4 million for an average price per share of $1,536. For the year ended December 31, 2022, we repurchased 48,959 shares of Common Stock totaling $87.9 million for an average price per share of $1,795. Dividends For the year ended December 31, 2023, we paid total cash dividends of $13.00 per share of Common Stock. For the year ended December 31, 2022, we paid total cash dividends of $12.00 per share of Common Stock and special dividends of $20.00 per share of Common Stock. |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Business Segment Reporting During the periods presented, we reported our financial performance based on the following segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of our strategies and objectives and provide a framework for timely and rational allocation of resources within businesses. We eliminate any inter-segment revenues and expenses upon consolidation. The Land and Resource Management segment encompasses the business of managing our approximately 868,000 surface acres of land and our oil and gas royalty interests in West Texas, principally concentrated in the Permian Basin. The revenue streams of this segment consist primarily of royalties from oil and gas, revenues from easements and commercial leases, and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin. The revenue streams of this segment primarily consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties. Years Ended December 31, 2023 2022 2021 Revenues: Land and resource management $ 432,105 $ 506,975 $ 320,387 Water services and operations 199,490 160,447 130,571 Total consolidated revenues $ 631,595 $ 667,422 $ 450,958 Net income: Land and resource management $ 306,706 $ 365,041 $ 208,897 Water services and operations 98,939 81,321 61,083 Total consolidated net income $ 405,645 $ 446,362 $ 269,980 Capital Expenditures: Land and resource management $ 241 $ 393 $ 4,688 Water services and operations 15,190 18,574 11,727 Total capital expenditures $ 15,431 $ 18,967 $ 16,415 Depreciation, depletion and amortization: Land and resource management $ 3,073 $ 2,234 $ 2,397 Water services and operations 11,684 13,142 13,860 Total depreciation, depletion and amortization $ 14,757 $ 15,376 $ 16,257 The following table presents total assets and property, plant and equipment, net by segment as of December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Assets: Land and resource management $ 975,136 $ 735,193 Water services and operations 181,262 142,234 Total consolidated assets $ 1,156,398 $ 877,427 Property, plant and equipment, net: Land and resource management $ 5,322 $ 5,998 Water services and operations 84,265 79,480 Total consolidated property, plant and equipment, net $ 89,587 $ 85,478 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We evaluated events that occurred after the balance sheet date through the date these financial statements were issued, and the following events that met recognition or disclosure criteria were identified: Dividends Declared On February 13, 2024, our board of directors declared a quarterly cash dividend of $3.50 per share, payable on March 15, 2024 to stockholders of record at the close of business on March 1, 2024. |
Oil and Gas Producing Activitie
Oil and Gas Producing Activities (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Extractive Industries [Abstract] | |
Oil and Gas Producing Activities (Unaudited) | Oil and Gas Producing Activities (Unaudited) We measure our share of oil and gas produced in barrels of oil equivalent (“Boe”). One Boe equals one barrel of crude oil, condensate, NGLs (natural gas liquids) or approximately 6,000 cubic feet of gas. For the years ended December 31, 2023, 2022 and 2021, our share of oil and gas produced was approximately 23.5, 21.3 and 18.6 thousand Boe per day, respectively. Reserves related to our royalty interests are not presented because the information is unavailable. There are a number of oil and gas wells that have been drilled but are not yet completed (“DUC”) where we have a royalty interest. The number of DUC wells is determined using uniform drilling spacing units with pooled interests for all wells awaiting completion. We have identified 675, 584, and 452 DUC wells subject to our royalty interest as of December 31, 2023, 2022 and 2021, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Segment Reporting | We operate our business in two segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of strategies and objectives of TPL and provide a framework for timely and rational allocation of resources within businesses. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include our consolidated accounts and the accounts of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information. |
Revenue Recognition | Revenue Recognition Oil and Gas Royalties Oil and gas royalties are received in connection with royalty interests owned by TPL. Oil and gas royalties are reported net of production taxes and are recognized as revenue when crude oil and natural gas products are removed from the respective mineral reserve locations. Oil and gas royalty payments are generally received one to two months after the crude oil and gas products are removed. An accrual for amounts not received during the month crude oil and natural gas products are removed is included in accounts receivable and accrued receivables, net based on historical trends. The oil and gas royalties which we receive are dependent upon the market prices for oil and gas, and locational and contractual price differences. The market prices for oil and gas are subject to national and international economic and political conditions and subject to significant price fluctuations. TPL has analyzed public reports of drilling activities by the oil companies operating where we have an oil and gas royalty interest in an effort to identify unpaid royalties associated with royalty interests we own. Rights to certain oil and gas royalties we believe to be due and payable may be subject to dispute with the oil company involved as a result of disagreements with respect to drilling and related engineering information. Disputed oil and gas royalties are recorded when these contingencies are resolved. Water Sales Water sales revenue encompasses sales of water to operators and other customers, royalties received related to areas of mutual interest (“AMI”), and royalties received pursuant to legacy agreements with operators. In certain instances, we enter into agreements with third parties to provide various water services, including but not limited to, the purchase, sale or transfer of water within a specific geographic area, also known as an AMI. Our performance obligation is deemed satisfied upon the delivery of water at which point, revenue is recognized. In instances where a third party other than the customer is involved in the sale and/or transport of water, such as a revenue share agreement, brokered water sale transaction or third party acquisition of water, the Company will either be acting as the principal or the agent in the water sales transaction. If the Company is deemed to be acting as a principal, the associated revenues are reported on a gross basis in water sales revenue and the corresponding costs associated with the sale are reported as an operating expense in water service-related expenses in the consolidated income statement. If the Company is deemed to be acting as an agent, principally in brokered water transactions, the associated water sales revenue is reported net of the corresponding costs associated with the sale and included in the water sales revenue line item on the consolidated income statement. Purchases of water from third parties, transfer costs and treatment expenses associated with water sales are included in water service-related expenses. Produced Water Royalties Produced water royalties represent revenue from the transfer and disposal of saltwater from producing oil and gas wells on our land. Revenue is recognized when the water is transported across or injected into our land. Easements and Other Surface-Related Income Easement contracts represent contracts which permit companies to install pipelines, electric lines and other equipment on land owned by TPL. When TPL receives a signed contract and payment, we make available the respective parcel of land to the grantee. Easement income is recognized upon the execution of the easement agreement, or in the event of a renewal upon receipt of the renewal payment, as at that point in time, we have satisfied our performance obligation and the customer has right of use. Leases of our surface acreage include, but are not limited to, facility, roadway and surface leases with a typical lease term of ten years and generally require fixed annual payments. Lease cancellations are allowed under certain circumstances, but initial lease deposits are generally nonrefundable. The initial lease deposits and annual payments are recorded as unearned revenue upon receipt and amortized over the life of the lease. Advance lease payments are deferred and amortized over the appropriate accounting period. Other surface-related income includes revenue from permits, material sales, and renewable energy sources. Revenue from permits is recognized upon execution of the contract and receipt of payment. Revenue from material sales is recognized upon the removal of materials by the customer. Revenue from renewable energy sources, such as wind and solar power, generally consist of leases, some of which may include a provision for future royalties once certain circumstances occur. As discussed above, lease payments are recorded as unearned revenue and amortized over the life of the lease. Royalties are recognized based upon actual production. Land Sales and Exchanges We consider purchasers of land to be our customers as land management, leasing and sales are normal operating activities for TPL. Revenue is recognized on land sales when the performance obligation to the purchaser (customer) is complete. Revenue from land exchanges is recognized based upon the estimated fair value of the consideration exchanged. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash |
Receivables | Receivables |
Accrual Of Oil And Gas Royalties | Accrual of Oil and Gas Royalties The Company accrues oil and gas royalties, which are included in accounts receivable and accrued receivables, net. An accrual is necessary due to the time lag between the removal of crude oil and natural gas products from the respective mineral reserve locations and generation of the actual payment by operators. The oil and gas royalty accrual is based upon historical production volumes, estimates of the timing of future payments and recent market prices for oil and gas. |
Real Estate Acquired | Real Estate Acquired |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is carried at cost less accumulated depreciation. Maintenance and repair costs are expensed as incurred. Costs associated with our development of infrastructure for sourcing and treating water are capitalized. We account for depreciation of property, plant and equipment on the straight-line method over the estimated useful lives of the assets. Depreciable lives by category are as follows: Range of Estimated Useful Lives (in years) Water wells and other water-related assets 3 to 20 Furniture, fixtures and equipment 3 to 15 |
Royalty Interests Acquired | Royalty Interests Acquired |
Real Estate And Royalty Interests Assigned | Real Estate and Royalty Interests Assigned Through the Declaration of Trust The fair market value of the land and royalty interests that were assigned through the Declaration of Trust (referred to as “Assigned” land and royalty interests) was not determined in 1888 when the Trust was formed; therefore, no value is assigned in the accompanying consolidated balance sheets to the Assigned land and royalty interests. Consequently, in the consolidated statements of income and total comprehensive income, no allowance is made for depletion and no cost is deducted from the proceeds of sales of the Assigned land and royalty interests. Even though the 1888 value of real properties cannot be precisely determined, it has been concluded that the effect of this matter can no longer be significant to our financial position or results of operations. Minimal real estate improvements are made to land. |
Intangible Assets Net | Intangible Assets, Net Intangible assets include a saltwater disposal easement and acquired groundwater rights. When the Company acquires intangible assets that are attached to real estate and/or other tangible assets, an allocation of the total purchase price, including any direct costs of the acquisition, is made at the date of acquisition based on the estimated relative fair values of the assets acquired. |
Leases | Leases We lease certain facilities under operating leases. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include our administrative offices located in Dallas and Midland, Texas, as well as some modular buildings in our West Texas yards. Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all of the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. Short-term leases with an initial term of 12 months or less are not recognized in the right-to-use asset and lease liability on the consolidated balance sheets. The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee. For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payments for items such as common area maintenance and parking. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. See Note 12, “Commitments” for additional information. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Share-Based Compensation | Share-Based Compensation The Company utilizes the closing stock price on the date of grant to determine the fair value of stock awards and service-vesting awards, which for the Company includes stock awards, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”) with a performance condition. For PSUs with a market condition, grant date fair value is determined using a Monte Carlo simulation model. Unvested awards are entitled to dividends or dividend equivalents which are accrued and distributed to award recipients at the time such awards vest. Dividends are forfeitable if the related award is forfeited. For RSAs, RSUs and PSUs with performance conditions, forfeitures are recognized in the period in which they occur. For PSU awards with market conditions, forfeitures are only recognized if the award recipient does not render the required service during the measurement period. Share-based compensation expense for stock awards is recognized in the financial statements immediately on date of grant as there is no requisite service period. Share-based compensation expense for RSUs and RSAs is recognized in the financial statements over the awards’ vesting periods using the graded-vesting method. Share-based compensation expense for PSU awards with performance conditions is recognized ratably over the measurement period at such time as the awards are probable and estimable. Share-based compensation expense for PSU awards with market conditions is recognized ratably over the measurement period whether the market condition is satisfied or not if the service for the award is rendered. Share-based compensation is reported on the consolidated statements of income and total comprehensive income as a component of salaries and related employee expenses for employee awards and in general and administrative expenses for director awards. |
Net Income Per Share | Net Income Per Share Basic income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is computed based upon the weighted average number of shares outstanding during the period plus unvested shares issued pursuant to our equity and deferred compensation plans. See Note 11, “Earnings Per Share.” |
Treasury Stock | Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired Common Stock is recorded as treasury stock. The cost associated with issuance of treasury stock is based on the average cost of treasury stock as of the date of issuance. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other gains and losses affecting capital that, under GAAP, are excluded from net income. |
Concentrations of Credit Risk | Concentrations of Credit Risk We invest our cash and cash equivalents (which include U.S. Treasury bills, money market funds, and commercial paper with maturities of three months or less) among two major financial institutions in an attempt to minimize exposure to risk from any one of these entities. As of December 31, 2023 and 2022, we had cash and cash equivalents deposited in our financial institutions in excess of federally-insured levels. We regularly monitor the financial condition of these financial institutions and believe that we are not exposed to any significant credit risk in cash and cash equivalents. |
Significant Customers | Significant Customers Three customers represented, in the aggregate, 42.5% of TPL’s total revenues for the year ended December 31, 2023. Four customers represented, in the aggregate, 51.8% of TPL’s total revenues for the year ended December 31, 2022. Three customers represented, in the aggregate, 41.0% of TPL’s total revenues for the year ended December 31, 2021. |
Reclassifications | Reclassifications Certain financial information on the consolidated balance sheet as of December 31, 2022 and consolidated statement of income and total comprehensive income for the year ended December 31, 2022 and December 31, 2021, respectively, have been revised to conform to the current year presentation. These revisions include a balance sheet reclassification of $454,000 of other taxes payable previously included in accounts payable and accrued expenses to ad valorem and other taxes payable, an income statement reclassification of $120,000 of property taxes previously included in general and administrative expenses to ad valorem and other taxes, an income statement reclassification of $55,000 from land sales expenses to general and administrative expenses for the year ended December 31, 2022 and an income statement reclassification of $144,000 of property taxes previously included in general and administrative expenses to ad valorem and other taxes for the year ended December 31, 2021. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands): December 31, December 31, 2022 Cash and cash equivalents $ 725,169 $ 510,834 Tax like-kind exchange escrow 5,380 6,348 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 730,549 $ 517,182 |
Schedule of Property, Plant and Equipment | Depreciable lives by category are as follows: Range of Estimated Useful Lives (in years) Water wells and other water-related assets 3 to 20 Furniture, fixtures and equipment 3 to 15 Property, plant and equipment, net consisted of the following as of December 31, 2023 and 2022 (in thousands): December 31, December 31, Property, plant and equipment, at cost: Water service-related assets $ 136,340 $ 125,166 Furniture, fixtures and equipment 9,801 9,718 Other 598 598 Total property, plant and equipment, at cost 146,739 135,482 Less: accumulated depreciation (57,152) (50,004) Property, plant and equipment, net $ 89,587 $ 85,478 |
Real Estate Activity (Tables)
Real Estate Activity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Real Estate Activity | As of December 31, 2023 and 2022, TPL owned the following land and real estate (in thousands, except number of acres): December 31, December 31, Number of Acres Net Book Value Number of Acres Net Book Value Land (surface rights) (1) 798,999 $ — 817,060 $ — Real estate acquired 69,447 130,024 57,306 109,704 Total real estate situated in Texas 868,446 $ 130,024 874,366 $ 109,704 (1) Real estate assigned through the Declaration of Trust. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Depreciable lives by category are as follows: Range of Estimated Useful Lives (in years) Water wells and other water-related assets 3 to 20 Furniture, fixtures and equipment 3 to 15 Property, plant and equipment, net consisted of the following as of December 31, 2023 and 2022 (in thousands): December 31, December 31, Property, plant and equipment, at cost: Water service-related assets $ 136,340 $ 125,166 Furniture, fixtures and equipment 9,801 9,718 Other 598 598 Total property, plant and equipment, at cost 146,739 135,482 Less: accumulated depreciation (57,152) (50,004) Property, plant and equipment, net $ 89,587 $ 85,478 |
Oil and Gas Royalty Interests (
Oil and Gas Royalty Interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Royalty Interests | As of December 31, 2023 and 2022, we owned the following oil and gas royalty interests (in thousands): December 31, December 31, Oil and gas royalty interests: 1/16th nonparticipating perpetual royalty interests (1) $ — $ — 1/128th nonparticipating perpetual royalty interests (2) — — Royalty interests acquired, at cost (3) 51,494 47,928 Total royalty interests 51,494 47,928 Less: accumulated depletion (4,885) (2,903) Royalty interests, net $ 46,609 $ 45,025 (1) Nonparticipating perpetual royalty interests in 370,737 gross royalty acres as of December 31, 2023 and 2022. (2) Nonparticipating perpetual royalty interests in 84,934 gross royalty acres as of December 31, 2023 and 2022. (3) Royalty interest in 4,302 and 4,182 net royalty acres as of December 31, 2023 and 2022, respectively. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Net | Intangible assets, net consisted of the following as of December 31, 2023 and 2022 (in thousands): December 31, December 31, Intangible assets, at cost: Saltwater disposal easement $ 17,557 $ — Groundwater rights acquired 3,846 — Total intangible assets, at cost (1) 21,403 — Less: accumulated amortization (378) — Intangible assets, net $ 21,025 $ — (1) |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Net Funded Status | The following table sets forth the Pension Plan’s changes in benefit obligation, changes in fair value of assets, and funded status as of December 31, 2023 and 2022 using a measurement date of December 31 (in thousands): December 31, 2023 December 31, 2022 Change in projected benefits obligation: Projected benefit obligation at beginning of year $ 8,177 $ 11,324 Service cost 1,537 2,870 Interest cost 423 336 Actuarial gain (loss) 658 (6,111) Benefits paid (242) (242) Projected benefit obligation at end of year $ 10,553 $ 8,177 Change in Pension Plan assets: Fair value of Pension Plan assets at beginning of year $ 11,650 $ 10,713 Actual return on Pension Plan assets 725 (947) Contributions by employer 2,068 2,126 Benefits paid (242) (242) Fair value of Pension Plan assets at end of year 14,201 11,650 Funded status at end of year $ 3,648 $ 3,473 |
Schedule of Defined Benefit Plans Disclosures | Amounts recognized in the balance sheets as of December 31, 2023 and 2022 consist of (in thousands): December 31, 2023 December 31, 2022 Assets $ 3,648 $ 3,473 Liabilities — — $ 3,648 $ 3,473 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income on the Consolidated Balance Sheets consist of the following as of December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Net actuarial gain $ 2,319 $ 3,189 Amounts recognized in accumulated other comprehensive income, before taxes 2,319 3,189 Income tax expense (488) (673) Amounts recognized in accumulated other comprehensive income, after taxes $ 1,831 $ 2,516 |
Schedule of Net Benefit Costs | Net periodic benefit cost for the years ended December 31, 2023, 2022 and 2021 include the following components (in thousands): Years Ended December 31, 2023 2022 2021 Components of net periodic benefit cost: Service cost $ 1,537 $ 2,870 $ 3,225 Interest cost 423 336 264 Expected return on Pension Plan assets (807) (741) (521) Recognized actuarial (gain) loss (130) 41 144 Net periodic benefit cost $ 1,023 $ 2,506 $ 3,112 |
Schedule of Other Changes in Plan Assets and Benefit Obligations | Other changes in Pension Plan assets and benefit obligations recognized in other comprehensive (income) loss for the years ended December 31, 2023, 2022 and 2021 (in thousands): Years Ended December 31, 2023 2022 2021 Net actuarial (gain) loss $ 739 $ (4,422) $ (1,990) Recognized actuarial gain (loss) 130 (41) (144) Total recognized in other comprehensive (income) loss, before taxes $ 869 $ (4,463) $ (2,134) Total recognized in net benefit cost and other comprehensive (income) loss, before taxes $ 1,892 $ (1,958) $ 978 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The following table summarizes the projected benefit obligation in excess of Pension Plan assets and Pension Plan assets in excess of accumulated benefit obligation as of December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Projected benefit obligation in excess of Pension Plan assets: Projected benefit obligation $ 10,553 $ 8,177 Fair value of Pension Plan assets $ 14,201 $ 11,650 Plan assets in excess of accumulated benefit obligation: Accumulated benefit obligation $ 6,417 $ 5,277 Fair value of Pension Plan assets $ 14,201 $ 11,650 |
Schedule of Assumptions Used | The following are weighted-average assumptions used to determine benefit obligations and costs as of December 31, 2023, 2022 and 2021: Years Ended December 31, 2023 2022 2021 Weighted average assumptions used to determine benefit obligations as of December 31: Discount rate 5.00 % 5.25 % 3.00 % Rate of compensation increase 7.29 % 7.29 % 7.29 % Weighted average assumptions used to determine benefit costs for the years ended December 31: Discount rate 5.25 % 3.00 % 2.75 % Expected return on Pension Plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase 7.29 % 7.29 % 7.29 % |
Schedule of Plan Assets by Major Asset Category | The fair values of the Pension Plan assets by major asset category as of December 31, 2023 and 2022, are as follows (in thousands): Total Quoted Prices in Significant Other Significant As of December 31, 2023: Cash and cash equivalents — money markets $ 1,179 $ 1,179 $ — $ — Equities 8,182 8,182 — — Equity funds 401 401 — — Fixed income funds 1,000 1,000 — — Taxable bonds 3,439 3,439 — — Total $ 14,201 $ 14,201 $ — $ — As of December 31, 2022: Cash and cash equivalents — money markets $ 2,571 $ 2,571 $ — $ — Equities 392 392 — — Equity funds 2,884 2,884 — — Fixed income funds 598 598 — — Taxable bonds 5,205 5,205 — — Total $ 11,650 $ 11,650 $ — $ — |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the following ten-year period (in thousands): Year ending December 31, Amount 2024 $ 261 2025 257 2026 257 2027 263 2028 329 2029 to 2033 2,059 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards and Units Activity | The following table summarizes activity related to RSAs and RSUs under the 2021 Plan for the years ended December 31, 2023 and 2022: Years Ended December 31, 2023 2022 Restricted Stock Awards (1) Restricted Stock Units (2) Restricted Stock Awards (1) Restricted Stock Units (2) Number of RSAs Weighted-Average Grant-Date Fair Value per Share Number of RSUs Weighted-Average Grant-Date Fair Value per Share Number of RSAs Weighted-Average Grant-Date Fair Value per Share Number of RSUs Weighted-Average Grant-Date Fair Value per Share Nonvested at beginning of period 1,337 $ 1,252 5,612 $ 1,323 3,330 $ 1,252 — $ — Granted — — 2,848 1,924 — — 5,612 1,323 Vested (3) (1,297) 1,252 (1,864) 1,324 (1,993) 1,252 — — Cancelled and forfeited (40) 1,252 (371) 1,602 — — — — Nonvested at end of period — $ — 6,225 $ 1,581 1,337 $ 1,252 5,612 $ 1,323 (1) RSAs were granted on December 29, 2021: 1,993 shares vested on December 29, 2022, 40 shares were forfeited during 2023 and 1,297 shares vested on December 29, 2023. (2) RSUs vest in one-third increments over a three-year period. (3) Of the 3,161 shares that vested during the year ended December 31, 2023, 1,165 shares were surrendered upon vesting by employees to the Company to settle tax withholding obligations. The following table summarizes activity related to the RSAs under the 2021 Directors Plan for the years ended December 31, 2023 and 2022: Years Ended December 31, 2023 2022 Restricted Stock Awards Restricted Stock Awards Number of RSAs Weighted-Average Grant-Date Fair Value per Share Number of RSAs Weighted-Average Grant-Date Fair Value per Share Nonvested at beginning of period 699 $ 1,281 — $ — Granted (1) 486 2,344 784 1,277 Vested (807) 1,423 — — Cancelled and forfeited — — (85) 1,249 Nonvested at end of period 378 $ 2,344 699 $ 1,281 (1) |
Schedule of Performance Share Units Activity | The following table summarizes activity related to PSUs for the years ended December 31, 2023 and 2022: Years Ended December 31, 2023 2022 Number of Target PSUs Weighted-Average Grant-Date Fair Value per Share Number of Target PSUs Weighted-Average Grant-Date Fair Value per Share Nonvested at beginning of period (1) 2,394 $ 1,355 — $ — Granted (2) 1,852 2,342 2,394 1,355 Vested — — — — Cancelled and forfeited — — — — Nonvested at end of period 4,246 $ 1,786 2,394 $ 1,355 (1) The PSUs were granted on February 11, 2022 and include 1,197 RTSR (as defined below) PSUs (based on target) with a grant date fair value of $1,605 per share and 1,197 FCF (as defined below) PSUs (based on target) with a grant date fair value of $1,105 per share. If the maximum performance potential metrics described in the PSU agreements are achieved, the actual number of units that will ultimately be awarded under the PSU agreements will exceed target units by 100% (i.e., a collective 2,394 additional units would be issued). (2) The PSUs were granted on February 10, 2023 and include 926 RTSR PSUs (based on target) with a grant date fair value of $2,761 per share and 926 FCF PSUs (based on target) with a grant date fair value of $1,924 per share. If the maximum performance potential metrics described in the PSU agreements are achieved, the actual number of units that will ultimately be awarded under the PSU agreements will exceed target units by 100% (i.e., a collective 1,852 additional units would be issued). |
Schedule of Share-Based Compensation Expense | The following table summarizes our share-based compensation expense by line item in the consolidated statements of income (in thousands): Years Ended December 31, 2023 2022 2021 Salaries and related employee expenses (employee awards) $ 9,124 $ 7,583 $ 28 General and administrative expenses (director awards) 1,219 849 — Total share-based compensation expense (1) $ 10,343 $ 8,432 $ 28 (1) The Company recognized a tax benefit of $2.2 million and $1.8 million related to share-based compensation for the years ended December 31, 2023 and 2022, respectively. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | Other income, net for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands): Years Ended December 31, 2023 2022 2021 Other income, net: Interest earned on cash and cash equivalents, net $ 28,630 $ 6,207 $ 78 Other employee pension costs 514 363 113 Miscellaneous other income (expense), net (1) 2,364 (22) 433 Total other income, net $ 31,508 $ 6,548 $ 624 (1) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision charged to operations for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands): Years Ended December 31, 2023 2022 2021 Current: U.S. Federal $ 106,721 $ 117,395 $ 90,920 State and local 3,796 3,835 2,345 Current income tax expense 110,517 121,230 93,265 Deferred (benefit) expense 1,399 1,263 (228) Total income tax expense $ 111,916 $ 122,493 $ 93,037 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 21% for the years ended December 31, 2023, 2022 and 2021 to income before Federal income taxes as a result of the following (in thousands): Years Ended December 31, 2023 2022 2021 Computed tax expense at the statutory rate of 21% $ 108,688 $ 119,460 $ 76,234 Reduction in income taxes resulting from: Statutory depletion (682) (823) (584) State taxes 3,439 3,045 1,740 Executive compensation 1,117 1,146 1,687 Prior year tax adjustments (305) (13) 18 Correction of historical tax depletion — 805 12,975 Estimated penalties and interest — (763) 1,022 Other, net (341) (364) (55) Total income tax expense $ 111,916 $ 122,493 $ 93,037 Effective tax rate 21.6 % 21.5 % 25.6 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in thousands): December 31, 2023 December 31, 2022 Unearned revenue $ 6,717 $ 5,621 Stock compensation 2,097 1,256 Other 760 48 Total deferred tax assets 9,574 6,925 Property, plant and equipment 17,532 16,958 Real estate and royalty interests 33,215 30,387 Pension plan asset 767 731 Other, net 425 — Total deferred tax liabilities 51,939 48,076 Deferred taxes payable $ (42,365) $ (41,151) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of EPS for the years ended December 31, 2023, 2022 and 2021 (in thousands, except number of shares and per share data): Years Ended December 31, 2023 2022 2021 Net income $ 405,645 $ 446,362 $ 269,980 Basic earnings per share: Weighted average shares outstanding for basic earnings per share 7,681,435 7,721,957 7,752,027 Basic earnings per share $ 52.81 $ 57.80 $ 34.83 Diluted earnings per share: Weighted average shares outstanding for basic earnings per share 7,681,435 7,721,957 7,752,027 Effect of Dilutive securities: Stock-based incentive plan 5,180 4,852 27 Weighted average shares outstanding for diluted earnings per share 7,686,615 7,726,809 7,752,054 Diluted earnings per share $ 52.77 $ 57.77 $ 34.83 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments were as follows as of December 31, 2023 (in thousands): Year ending December 31, Amount 2024 $ 854 2025 826 2026 316 2027 187 Total lease payments 2,183 Less: imputed interest (159) Total operating lease liabilities $ 2,024 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Results | The following table presents segment financial results for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): Years Ended December 31, 2023 2022 2021 Revenues: Land and resource management $ 432,105 $ 506,975 $ 320,387 Water services and operations 199,490 160,447 130,571 Total consolidated revenues $ 631,595 $ 667,422 $ 450,958 Net income: Land and resource management $ 306,706 $ 365,041 $ 208,897 Water services and operations 98,939 81,321 61,083 Total consolidated net income $ 405,645 $ 446,362 $ 269,980 Capital Expenditures: Land and resource management $ 241 $ 393 $ 4,688 Water services and operations 15,190 18,574 11,727 Total capital expenditures $ 15,431 $ 18,967 $ 16,415 Depreciation, depletion and amortization: Land and resource management $ 3,073 $ 2,234 $ 2,397 Water services and operations 11,684 13,142 13,860 Total depreciation, depletion and amortization $ 14,757 $ 15,376 $ 16,257 |
Schedule of Total Assets And Property, Plant and Equipment | The following table presents total assets and property, plant and equipment, net by segment as of December 31, 2023 and 2022 (in thousands): December 31, 2023 December 31, 2022 Assets: Land and resource management $ 975,136 $ 735,193 Water services and operations 181,262 142,234 Total consolidated assets $ 1,156,398 $ 877,427 Property, plant and equipment, net: Land and resource management $ 5,322 $ 5,998 Water services and operations 84,265 79,480 Total consolidated property, plant and equipment, net $ 89,587 $ 85,478 |
Organization and Description _2
Organization and Description of Business Segments (Details) a in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2023 a segment | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Number of operating segments | segment | 2 | ||
1/16th nonparticipating perpetual royalty interest | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Nonparticipating perpetual royalty interest rate (in percentage) | 6.25% | 6.25% | 6.25% |
1/128th nonparticipating perpetual royalty interest | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Nonparticipating perpetual royalty interest rate (in percentage) | 0.78125% | 0.78125% | |
1/8th Net royalty acres | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Nonparticipating perpetual royalty interest rate (in percentage) | 12.50% | ||
West Texas | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Area of land (in acres) | 868 | ||
West Texas | 1/128th Nonparticipating perpetual oil and gas royalty interest | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Area of land (in acres) | 85 | ||
West Texas | 1/16th Nonparticipating perpetual oil and gas royalty interest | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Area of land (in acres) | 371 | ||
West Texas | 1/8th Net royalty acres | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Area of land (in acres) | 4 | ||
West Texas | Net Royalty Acres | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Area of land (in acres) | 195 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) | Dec. 31, 2023 |
Land | |
Lessor, Lease, Description [Line Items] | |
Typical lease term | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 725,169 | $ 510,834 | ||
Tax like-kind exchange escrow | 5,380 | 6,348 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 730,549 | $ 517,182 | $ 428,242 | $ 283,024 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Valuation allowance | $ 0.2 | $ 0.2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Intangible Assets, Net (Details) | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 18 years 9 months 18 days |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 15 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Accrual of Oil and Gas Royalties (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Product Information [Line Items] | ||
Accounts receivable and accrued receivables, net | $ 128,971 | $ 103,983 |
Oil and gas royalties | ||
Product Information [Line Items] | ||
Accounts receivable and accrued receivables, net | $ 52,200 | $ 50,100 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Real Estate Acquired (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Real estate impairments | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Property, Plant and Equipment Estimated Useful Lives (Details) | Dec. 31, 2023 |
Minimum | Water wells and other water-related assets | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Minimum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Maximum | Water wells and other water-related assets | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 20 years |
Maximum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 15 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Royalty Interests Acquired (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Real estate impairments | $ 0 | $ 0 | $ 0 |
Depletion expense | $ 2,000,000 | $ 1,000,000 | $ 1,300,000 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Net Income Per Share (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) | 12 Months Ended |
Dec. 31, 2023 financialInstitution | |
Cash and cash equivalents | Customer concentration risk | |
Product Information [Line Items] | |
Number of customers | 2 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Significant Customers (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Customers | Sales revenue, net | Customer concentration risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 42.50% | 51.80% | 41% |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ad valorem and other taxes payable | $ 2,264 | $ 8,321 | $ 10 |
General and administrative expenses | $ 14,928 | 13,285 | 11,638 |
Revision of prior period, reclassification, adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accrual for ad valorem taxes | 454 | ||
Ad valorem and other taxes payable | 120 | $ 144 | |
General and administrative expenses | $ 55 |
Real Estate Activity - Schedule
Real Estate Activity - Schedule of Land and Real Estate Ownership (Details) $ in Thousands | Dec. 31, 2023 USD ($) a | Dec. 31, 2022 USD ($) a |
Number of Acres | ||
Land (surface rights) (acre) | a | 798,999 | 817,060 |
Real estate acquired (acre) | a | 69,447 | 57,306 |
Total Real Estate Situated in Texas (acre) | a | 868,446 | 874,366 |
Net Book Value | ||
Land (surface rights) | $ | $ 0 | $ 0 |
Real estate acquired | $ | 130,024 | 109,704 |
Total real estate situated in Texas (in USD) | $ | $ 130,024 | $ 109,704 |
Real Estate Activity - Narrativ
Real Estate Activity - Narrative (Details) - Texas $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) a | Dec. 31, 2022 USD ($) a | Dec. 31, 2021 USD ($) a | |
Land sales and other operating revenue | |||
Real Estate Properties [Line Items] | |||
Area of real estate property, sold (in acres) | a | 18,061 | 6,392 | 30 |
Proceeds from sale of real estate (in USD) | $ | $ 6.8 | $ 9.7 | $ 0.7 |
Land acquisitions | |||
Real Estate Properties [Line Items] | |||
Additions (acres) | a | 12,141 | 177 | 88 |
Additions | $ | $ 20 | $ 0.6 | $ 0.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 146,739 | $ 135,482 | |
Less: accumulated depreciation | (57,152) | (50,004) | |
Property, plant and equipment, net | 89,587 | 85,478 | |
Depreciation expense | 12,200 | 14,200 | $ 14,800 |
Water service-related assets | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | 136,340 | 125,166 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | 9,801 | 9,718 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, at cost | $ 598 | $ 598 |
Oil and Gas Royalty Interests_2
Oil and Gas Royalty Interests (Details) $ in Thousands | Dec. 31, 2023 USD ($) a | Dec. 31, 2022 USD ($) a |
Oil and gas royalty interests: | ||
Royalty interests acquired, at cost (3) | $ 51,494 | $ 47,928 |
Total royalty interests | 51,494 | 47,928 |
Less: accumulated depletion | (4,885) | (2,903) |
Royalty interests, net | 46,609 | 45,025 |
1/16th nonparticipating perpetual royalty interest | ||
Oil and gas royalty interests: | ||
1/16th nonparticipating perpetual royalty interest | $ 0 | $ 0 |
Gross royalty interests (in acres) | a | 370,737 | 370,737 |
1/128th nonparticipating perpetual royalty interest | ||
Oil and gas royalty interests: | ||
1/128th nonparticipating perpetual royalty interest | $ 0 | $ 0 |
Gross royalty interests (in acres) | a | 84,934 | 84,934 |
Royalty interests in acres | ||
Oil and gas royalty interests: | ||
Net royalty interest acquired (in acres) | a | 4,302 | 4,182 |
Oil and Gas Royalty Interests -
Oil and Gas Royalty Interests - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 USD ($) a | Dec. 31, 2022 USD ($) a | Dec. 31, 2021 USD ($) a | |
Real Estate Properties [Line Items] | ||||
Acquisition of royalty interests | $ 3,566 | $ 1,662 | $ 0 | |
Additional real estate acquisitions | ||||
Real Estate Properties [Line Items] | ||||
Net royalty interests (in acres) | a | 119 | 92 | 0 | |
Acquisition of royalty interests | $ 3,600 | $ 1,700 | ||
1/16th nonparticipating perpetual royalty interest | ||||
Real Estate Properties [Line Items] | ||||
Nonparticipating perpetual royalty interest rate (in percentage) | 6.25% | 6.25% | 6.25% | |
1/128th nonparticipating perpetual royalty interest | ||||
Real Estate Properties [Line Items] | ||||
Nonparticipating perpetual royalty interest rate (in percentage) | 0.78125% | 0.78125% |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, at cost (1) | $ 21,403 | $ 0 |
Less: accumulated amortization | (378) | 0 |
Intangible assets, net | $ 21,025 | 0 |
Finite-lived intangible asset, useful life | 18 years 9 months 18 days | |
Saltwater disposal easement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, at cost (1) | $ 17,557 | 0 |
Groundwater rights acquired | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, at cost (1) | $ 3,846 | $ 0 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Payments to acquire intangible assets | $ 21,403 | $ 0 | $ 0 | |
Amortization expense | $ 400 | 400 | ||
Estimated future annual amortization expense of intangible assets for 2024 | 1,100 | 1,100 | ||
Estimated future annual amortization expense of intangible assets for 2025 | 1,100 | 1,100 | ||
Estimated future annual amortization expense of intangible assets for 2026 | 1,100 | 1,100 | ||
Estimated future annual amortization expense of intangible assets for 2027 | 1,100 | 1,100 | ||
Estimated future annual amortization expense of intangible assets for 2028 | 1,100 | 1,100 | ||
Estimated future annual amortization expense of intangible assets thereafter | $ 15,500 | $ 15,500 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) h | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Matched contribution | 6% | ||
Employer contribution amount | $ 0.8 | $ 0.7 | $ 0.6 |
Requisite service period | 1 year | ||
Hours of service (in hours) | h | 1,000 | ||
Discount rate | 5% | 5.25% | 3% |
Projected benefit obligation | $ 0.6 | ||
Reclassification adjustment from AOCI, net of tax | 0.6 | $ 0.4 | $ 0.2 |
Reclassification adjustment from AOCI, tax | $ 0.2 | $ 0.1 | $ 0.1 |
Expected return on Pension Plan assets | 7% | 7% | 7% |
Inflation rate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on Pension Plan assets | 2.50% | ||
Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on Pension Plan assets | 8.50% | ||
Allocation of expected return on plan assets (in percentage) | 33.33333% | ||
Equity securities | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (in percentage) | 20% | ||
Equity securities | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (in percentage) | 60% | ||
Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on Pension Plan assets | 2.50% | ||
Allocation of expected return on plan assets (in percentage) | 66.66667% | ||
Fixed income securities | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (in percentage) | 30% | ||
Fixed income securities | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (in percentage) | 80% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Plan Changes in Fair Value of Plan Assets and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in projected benefits obligation: | |||
Projected benefit obligation at beginning of year | $ 8,177 | $ 11,324 | |
Service cost | 1,537 | 2,870 | $ 3,225 |
Interest cost | 423 | 336 | 264 |
Actuarial gain (loss) | 658 | (6,111) | |
Benefits paid | (242) | (242) | |
Projected benefit obligation at end of year | 10,553 | 8,177 | 11,324 |
Change in Pension Plan assets: | |||
Fair value of Pension Plan assets at beginning of year | 11,650 | 10,713 | |
Actual return on Pension Plan assets | 725 | (947) | |
Contributions by employer | 2,068 | 2,126 | |
Benefits paid | (242) | (242) | |
Fair value of Pension Plan assets at end of year | 14,201 | 11,650 | $ 10,713 |
Funded status at end of year | $ 3,648 | $ 3,473 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Amounts Recognized in the Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Share-Based Payment Arrangement [Abstract] | ||
Assets | $ 3,648 | $ 3,473 |
Liabilities | 0 | 0 |
Total assets and liabilities recognized in balance sheets | $ 3,648 | $ 3,473 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Net actuarial gain | $ 2,319 | $ 3,189 |
Amounts recognized in accumulated other comprehensive income, before taxes | 2,319 | 3,189 |
Income tax expense | (488) | (673) |
Amounts recognized in accumulated other comprehensive income, after taxes | $ 1,831 | $ 2,516 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Summary of Net Periodic Benefits Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of net periodic benefit cost: | |||
Service cost | $ 1,537 | $ 2,870 | $ 3,225 |
Interest cost | 423 | 336 | 264 |
Expected return on Pension Plan assets | (807) | (741) | (521) |
Recognized actuarial (gain) loss | (130) | 41 | 144 |
Net periodic benefit cost | $ 1,023 | $ 2,506 | $ 3,112 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Net actuarial (gain) loss | $ 739 | $ (4,422) | $ (1,990) |
Recognized actuarial gain (loss) | 130 | (41) | (144) |
Total recognized in other comprehensive (income) loss, before taxes | 869 | (4,463) | (2,134) |
Total recognized in net benefit cost and other comprehensive (income) loss, before taxes | $ 1,892 | $ (1,958) | $ 978 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Projected Benefit Obligation and Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Projected benefit obligation in excess of Pension Plan assets: | |||
Projected benefit obligation | $ 10,553 | $ 8,177 | |
Fair value of Pension Plan assets | 14,201 | 11,650 | $ 10,713 |
Plan assets in excess of accumulated benefit obligation: | |||
Accumulated benefit obligation | 6,417 | 5,277 | |
Fair value of Pension Plan assets | $ 14,201 | $ 11,650 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Summary of Weighted-average Assumptions Used to Determine Benefit Obligations and Costs (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted average assumptions used to determine benefit obligations as of December 31: | |||
Discount rate | 5% | 5.25% | 3% |
Rate of compensation increase | 7.29% | 7.29% | 7.29% |
Weighted average assumptions used to determine benefit costs for the years ended December 31: | |||
Discount rate | 5.25% | 3% | 2.75% |
Expected return on Pension Plan assets | 7% | 7% | 7% |
Rate of compensation increase | 7.29% | 7.29% | 7.29% |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Fair Values of Plan Assets by Major Asset Category (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | $ 14,201 | $ 11,650 | $ 10,713 |
Cash and cash equivalents — money markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 1,179 | 2,571 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 8,182 | 392 | |
Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 401 | 2,884 | |
Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 1,000 | 598 | |
Taxable bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 3,439 | 5,205 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 14,201 | 11,650 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents — money markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 1,179 | 2,571 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 8,182 | 392 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 401 | 2,884 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 1,000 | 598 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Taxable bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 3,439 | 5,205 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents — money markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Taxable bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents — money markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Taxable bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of Pension Plan assets | $ 0 | $ 0 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Summary of Benefit Payments Over Ten Years (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Share-Based Payment Arrangement [Abstract] | |
2024 | $ 261 |
2025 | 257 |
2026 | 257 |
2027 | 263 |
2028 | 329 |
2029 to 2033 | $ 2,059 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 10, 2023 $ / shares | Feb. 11, 2022 | Nov. 30, 2023 board_member shares | Mar. 31, 2022 | Dec. 31, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost | $ | $ 8.6 | ||||
Total unrecognized compensation cost, period for recognition | 1 year 1 month 6 days | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | 3 years | |||
PSU conversion ration (in shares) | 1 | ||||
Award vesting rights, percentage | 100% | ||||
Performance Shares | Shares vesting December 29, 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 50% | ||||
Performance Shares | Shares vesting December 29, 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 50% | ||||
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for future grants (in shares) | 55,089 | ||||
Common Stock | 2021 Plan | Maximum | Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 75,000 | ||||
Common Stock | 2021 Directors Plan | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for future grants (in shares) | 8,793 | ||||
Common Stock | 2021 Directors Plan | Maximum | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 10,000 | ||||
Restricted Stock Awards | Shares vesting December 29, 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 33% | ||||
Restricted Stock Awards | Shares vesting December 29, 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 33% | ||||
Restricted Stock Awards | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 33% | ||||
Stock Awards | 2021 Directors Plan | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted and immediately vested (in shares) | 22 | ||||
Granted and immediately vested (in dollars per share) | $ / shares | $ 1,641 | ||||
Number of members of board | board_member | 2 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Transactions (Details) - $ / shares | 12 Months Ended | ||||||
Nov. 10, 2023 | Sep. 01, 2023 | Feb. 11, 2022 | Dec. 29, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Awards | Shares vesting December 29, 2022 | |||||||
Weighted-Average Grant-Date Fair Value per Share | |||||||
Awards granted (in shares) | 1,993 | ||||||
Restricted Stock Awards | Shares vesting December 29, 2023 | |||||||
Weighted-Average Grant-Date Fair Value per Share | |||||||
Awards granted (in shares) | 1,297 | ||||||
Restricted Stock Awards | Employee | 2021 Plan | |||||||
Number of RSAs | |||||||
Non-vested, beginning of period (in shares) | 1,337 | 3,330 | |||||
Granted (in shares) | 0 | 0 | |||||
Vested (in shares) | (1,297) | (1,993) | |||||
Cancelled and forfeited (in shares) | (40) | (40) | 0 | ||||
Non-vested, at end of period (in shares) | 0 | 1,337 | |||||
Weighted-Average Grant-Date Fair Value per Share | |||||||
Non-vested, beginning of period (in dollars per share) | $ 0 | $ 1,252 | $ 1,252 | ||||
Granted (in dollars per share) | 0 | 0 | |||||
Vested (in dollars per share) | 1,252 | 1,252 | |||||
Cancelled and forfeited (in dollars per share) | 1,252 | 0 | |||||
Non-vested, at end of period (in dollars per share) | $ 0 | $ 1,252 | |||||
Restricted Stock Awards | Director | 2021 Directors Plan | |||||||
Number of RSAs | |||||||
Non-vested, beginning of period (in shares) | 699 | 0 | |||||
Granted (in shares) | 486 | 784 | |||||
Vested (in shares) | (807) | 0 | |||||
Cancelled and forfeited (in shares) | 0 | (85) | |||||
Non-vested, at end of period (in shares) | 378 | 699 | |||||
Weighted-Average Grant-Date Fair Value per Share | |||||||
Non-vested, beginning of period (in dollars per share) | $ 2,344 | $ 1,281 | 0 | ||||
Granted (in dollars per share) | 2,344 | 1,277 | |||||
Vested (in dollars per share) | 1,423 | 0 | |||||
Cancelled and forfeited (in dollars per share) | 0 | 1,249 | |||||
Non-vested, at end of period (in dollars per share) | $ 2,344 | $ 1,281 | |||||
Restricted Stock Units (RSUs) | |||||||
Weighted-Average Grant-Date Fair Value per Share | |||||||
Award vesting period | 3 years | ||||||
Restricted Stock Units (RSUs) | Employee | 2021 Plan | |||||||
Number of RSAs | |||||||
Non-vested, beginning of period (in shares) | 5,612 | 0 | |||||
Granted (in shares) | 2,848 | 5,612 | |||||
Vested (in shares) | (1,864) | 0 | |||||
Cancelled and forfeited (in shares) | (371) | 0 | |||||
Non-vested, at end of period (in shares) | 6,225 | 5,612 | |||||
Weighted-Average Grant-Date Fair Value per Share | |||||||
Non-vested, beginning of period (in dollars per share) | $ 1,581 | $ 1,323 | $ 0 | ||||
Granted (in dollars per share) | 1,924 | 1,323 | |||||
Vested (in dollars per share) | 1,324 | 0 | |||||
Cancelled and forfeited (in dollars per share) | 1,602 | 0 | |||||
Non-vested, at end of period (in dollars per share) | $ 1,581 | $ 1,323 | |||||
Restricted Stock Awards and Restricted Stock Units | Employee | 2021 Plan | |||||||
Number of RSAs | |||||||
Vested (in shares) | (3,161) | ||||||
Weighted-Average Grant-Date Fair Value per Share | |||||||
Shares withheld for tax withholdings (in shares) | 1,165 | ||||||
Stock Awards | Director | 2021 Directors Plan | |||||||
Weighted-Average Grant-Date Fair Value per Share | |||||||
Granted and immediately vested (in dollars per share) | $ 1,641 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Units (Details) - Performance Shares - $ / shares | 12 Months Ended | ||||
Feb. 10, 2023 | Feb. 11, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of RSAs | |||||
Non-vested, beginning of period (in shares) | 2,394 | 0 | |||
Granted (in shares) | 1,852 | 2,394 | 1,852 | 2,394 | |
Vested (in shares) | 0 | 0 | |||
Cancelled and forfeited (in shares) | 0 | 0 | |||
Non-vested, at end of period (in shares) | 4,246 | 2,394 | |||
Weighted-Average Grant-Date Fair Value per Share | |||||
Non-vested, beginning of period (in dollars per share) | $ 1,786 | $ 1,355 | $ 0 | ||
Granted (in dollars per share) | 2,342 | 1,355 | |||
Vested (in dollars per share) | 0 | 0 | |||
Cancelled and forfeited (in dollars per share) | 0 | 0 | |||
Non-vested, at end of period (in dollars per share) | $ 1,786 | $ 1,355 | |||
Relative total stockholder return | |||||
Number of RSAs | |||||
Granted (in shares) | 926 | 1,197 | |||
Weighted-Average Grant-Date Fair Value per Share | |||||
Non-vested, beginning of period (in dollars per share) | $ 2,761 | $ 1,605 | |||
Non-vested, at end of period (in dollars per share) | $ 2,761 | $ 1,605 | |||
Free cash flow | |||||
Number of RSAs | |||||
Granted (in shares) | 926 | 1,197 | |||
Weighted-Average Grant-Date Fair Value per Share | |||||
Non-vested, beginning of period (in dollars per share) | $ 1,924 | $ 1,105 | |||
Non-vested, at end of period (in dollars per share) | $ 1,924 | $ 1,105 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 10,343 | $ 8,432 | $ 28 |
Tax benefit related to share-based compensation | 2,200 | 1,800 | |
Salaries and related employee expenses (employee awards) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 9,124 | 7,583 | 28 |
General and administrative expenses (director awards) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 1,219 | $ 849 | $ 0 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other income, net: | |||
Interest earned on cash and cash equivalents, net | $ 28,630 | $ 6,207 | $ 78 |
Other employee pension costs | 514 | 363 | 113 |
Miscellaneous other income (expense), net (1) | 2,364 | (22) | 433 |
Total other income, net | 31,508 | $ 6,548 | $ 624 |
Interest and damages paid | $ 1,400 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Charged to Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal | $ 106,721 | $ 117,395 | $ 90,920 |
State and local | 3,796 | 3,835 | 2,345 |
Current income tax expense | 110,517 | 121,230 | 93,265 |
Deferred (benefit) expense | 1,399 | 1,263 | (228) |
Income tax expense | $ 111,916 | $ 122,493 | $ 93,037 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense at Federal Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Computed tax expense at the statutory rate of 21% | $ 108,688 | $ 119,460 | $ 76,234 |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory depletion | (682) | (823) | (584) |
State taxes | 3,439 | 3,045 | 1,740 |
Executive compensation | 1,117 | 1,146 | 1,687 |
Prior year tax adjustments | (305) | (13) | 18 |
Correction of historical tax depletion | 0 | 805 | 12,975 |
Estimated penalties and interest | 0 | (763) | 1,022 |
Other, net | (341) | (364) | (55) |
Income tax expense | $ 111,916 | $ 122,493 | $ 93,037 |
Effective tax rate (in percent) | 21.60% | 21.50% | 25.60% |
Income Taxes - Summary of Tempo
Income Taxes - Summary of Temporary Differences in Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Unearned revenue | $ 6,717 | $ 5,621 |
Stock compensation | 2,097 | 1,256 |
Other | 760 | 48 |
Total deferred tax assets | 9,574 | 6,925 |
Property, plant and equipment | 17,532 | 16,958 |
Real estate and royalty interests | 33,215 | 30,387 |
Pension plan asset | 767 | 731 |
Other, net | 425 | 0 |
Total deferred tax liabilities | 51,939 | 48,076 |
Deferred taxes payable | $ (42,365) | $ (41,151) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income | $ 405,645 | $ 446,362 | $ 269,980 |
Basic earnings per share: | |||
Weighted average shares outstanding for basic EPS (in shares) | 7,681,435 | 7,721,957 | 7,752,027 |
Basic earnings per share (in dollars per share) | $ 52.81 | $ 57.80 | $ 34.83 |
Diluted earnings per share: | |||
Weighted average shares outstanding for basic EPS (in shares) | 7,681,435 | 7,721,957 | 7,752,027 |
Incentive and equity compensation plans (in shares) | 5,180 | 4,852 | 27 |
Weighted average shares outstanding for diluted EPS (in shares) | 7,686,615 | 7,726,809 | 7,752,054 |
Diluted earnings per share (in dollars per share) | $ 52.77 | $ 57.77 | $ 34.83 |
Commitments - Additional Inform
Commitments - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | ||||
Amount received from arbitration | $ 10,100 | |||
Total consolidated revenues | 631,595 | $ 667,422 | $ 450,958 | |
Operating lease right-of-use assets | 1,861 | 2,525 | ||
Total operating lease liabilities | 2,024 | |||
Operating lease cost | $ 800 | 800 | ||
Operating lease, weighted average remaining lease term | 33 months | |||
Operating lease, weighted average discount rate | 4.70% | |||
Rent expense | $ 800 | 800 | 800 | |
Texas | ||||
Other Commitments [Line Items] | ||||
Operating lease right-of-use assets | 1,900 | 2,500 | ||
Total operating lease liabilities | 2,000 | 2,800 | ||
Other Operating Income (Expense) | ||||
Other Commitments [Line Items] | ||||
Amount received from arbitration | 1,400 | |||
Gain Contingency, Interest | ||||
Other Commitments [Line Items] | ||||
Amount received from arbitration | 900 | |||
Gain Contingency, Damages | ||||
Other Commitments [Line Items] | ||||
Amount received from arbitration | 500 | |||
Oil and gas royalties | ||||
Other Commitments [Line Items] | ||||
Total consolidated revenues | $ 8,700 | $ 357,394 | $ 452,434 | $ 286,468 |
Commitments - Future Minimum Le
Commitments - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 854 |
2025 | 826 |
2026 | 316 |
2027 | 187 |
Total lease payments | 2,183 |
Less: imputed interest | (159) |
Total operating lease liabilities | $ 2,024 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2022 | Jan. 11, 2021 | |
Class of Stock [Line Items] | |||||
Common stock distribution basis | 100% | ||||
Stock repurchase program, authorized amount | $ 250 | ||||
Treasury stock, shares acquired | 27,619 | 48,959 | |||
Value of share repurchased (in shares) | $ 42.4 | $ 87.9 | |||
Average cost per share of repurchased shares (in USD per share) | $ 1,536 | $ 1,795 | |||
Dividend Paid | |||||
Class of Stock [Line Items] | |||||
Cash dividends per share of common stock (in USD per share) | 13 | 12 | $ 11 | ||
Dividends accrued per common stock (in dollars per share) | $ 13 | 12 | $ 11 | ||
Special Dividend Paid | Sub-share Certificates | |||||
Class of Stock [Line Items] | |||||
Cash dividends per share of common stock (in USD per share) | 20 | ||||
Dividends accrued per common stock (in dollars per share) | $ 20 |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) a in Thousands | Dec. 31, 2023 a |
West Texas | |
Segment Reporting Information [Line Items] | |
Area of land (in acres) | 868 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total consolidated revenues | $ 631,595 | $ 667,422 | $ 450,958 |
Net income | 405,645 | 446,362 | 269,980 |
Payments to acquire intangible assets | 21,403 | 0 | 0 |
Total capital expenditures | 15,431 | 18,967 | 16,415 |
Depreciation, depletion and amortization | 14,757 | 15,376 | 16,257 |
Land and resource management | |||
Segment Reporting Information [Line Items] | |||
Total consolidated revenues | 432,105 | 506,975 | 320,387 |
Net income | 306,706 | 365,041 | 208,897 |
Total capital expenditures | 241 | 393 | 4,688 |
Depreciation, depletion and amortization | 3,073 | 2,234 | 2,397 |
Water services and operations | |||
Segment Reporting Information [Line Items] | |||
Total consolidated revenues | 199,490 | 160,447 | 130,571 |
Net income | 98,939 | 81,321 | 61,083 |
Total capital expenditures | 15,190 | 18,574 | 11,727 |
Depreciation, depletion and amortization | $ 11,684 | $ 13,142 | $ 13,860 |
Business Segment Reporting - As
Business Segment Reporting - Assets and Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 1,156,398 | $ 877,427 |
Total consolidated property, plant and equipment, net | 89,587 | 85,478 |
Land and resource management | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 975,136 | 735,193 |
Total consolidated property, plant and equipment, net | 5,322 | 5,998 |
Water services and operations | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 181,262 | 142,234 |
Total consolidated property, plant and equipment, net | $ 84,265 | $ 79,480 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 13, 2024 $ / shares |
Dividend declared | Subsequent event | |
Subsequent Event [Line Items] | |
Annual cash dividend (in dollars per share) | $ 3.50 |
Oil and Gas Producing Activit_2
Oil and Gas Producing Activities (Unaudited) (Details) | 12 Months Ended | ||
Dec. 31, 2023 Boe well | Dec. 31, 2022 Boe well | Dec. 31, 2021 Boe well | |
Extractive Industries [Abstract] | |||
Share of oil and gas produced in thousands per day | Boe | 23,500 | 21,300 | 18,600 |
Number of oil and gas wells | well | 675 | 584 | 452 |