Texas Pacific Land Trust Had a Mixed 2Q

August 1, 2019

Now that one of Texas’ biggest landowners has settled its differences with one of its investor groups, how’s the money flowing?

Royalty revenue and production benefiting  the Texas Pacific Land Trust was up, but of course the money received for oil and gas production was down about 5% for oil and 43% for natural gas.

The trust on Wednesday said oil and gas royalty revenue was up 30.9% for the second quarter, at $39.6 million — compared with $30.3 million for the second quarter ended June 30, 2018.

Crude oil and gas production subject to the Trust’s royalty interests increased 41.3% and 120.2%, respectively, in the second quarter ended June 30, 2019 compared to the second quarter of last year.

And while crude oil and gas production increased for this year’s second quarter compared year-over-year, the prices received for crude oil and gas production decreased 4.8% and 43.5%, respectively, over the same time period.

Easements and other surface-related income was $22.4 million for the second quarter ended June 30, 2019, a decrease of 19.6% compared with the second quarter ended June 30, 2018 when easements and other surface-related income was $27.8 million.

This decrease of $5.4 million resulted primarily from decreases in pipeline easement income and temporary permits partially offset by an increase in lease rental income for the second quarter ended June 30, 2019 compared to the same period of 2018.

Pipeline easement income decreased $3.8 million for the second quarter ended June 30, 2019 compared to the same period of 2018.

The trust manages 888,333 acres of land in 18 Texas counties (with a perpetual oil and gas royalty interest in some 459,200 acres) and is paid for oil and gas royalties agreements, grazing leases, easements, sundry and specialty leases, and land sales, among other things.