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Texas Pacific Land Corporation

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(Redirected from Texas Pacific Land Trust) Land trust in Texas
Texas Pacific Land Corporation
Company typePublic
Traded as
Industry
  • Forestry
  • Real estate
FoundedFebruary 1, 1888; 136 years ago (1888-02-01) as Texas Pacific Land Trust
HeadquartersDallas, Texas, U.S.
Key peopleTyler Glover
(CEO & President)
Chris Steddum (CFO)
ProductsOil/Gas Land Royalties
RevenueDecrease US$631.6 million (2023)
Operating incomeDecrease US$486.0 million (2023)
Net incomeDecrease US$405.6 million (2023)
Total assetsIncrease US$1.156 billion (2023)
Total equityIncrease US$1.043 billion (2023)
Number of employees99 (2023)
Websitewww.texaspacific.com
Footnotes / references

The Texas Pacific Land Corporation is a publicly traded real estate operating company with its administrative office in Dallas, Texas. Owning over 880,000 acres (3,600 km) in 20 West Texas counties, TPL is among the largest private landowners in the state of Texas. It was previously organized as a publicly traded trust taxed as a corporation, and operated under the name Texas Pacific Land Trust.

TPL has two business lines: royalties from oil and gas, its main business segment, and selling water.

History

Texas Pacific Land Holdings was created in 1888 in the wake of the Texas and Pacific Railway bankruptcy, as a means to dispose of the T&P's vast land holdings. Over 3.5 million acres were put into the trust, and bondholders exchanged their bonds for shares. Trustees were to sell the land and repay shareholders, eventually liquidating the trust, though there was no timetable for liquidation. The certificates were later divided into "sub-share" certificates on a 100 for one basis, which have been traded on the NYSE since January 1927. One such bond, No. 390, was not exchanged for stocks at this time. In 1979, a bank officer at Wells Fargo tracked down its ownership to Dutch sailor Joseph Raphael De Lamar. Worth $3,000 in 1888, the bond had been provided to De Lamar as partial payment for a debt. In 1979 its value was $3.2 million.

In 1954, shareholders approved the transfer of mineral rights on the land to a new entity, TXL Oil Corporation, who could engage in the exploration, drilling and development of oil and gas properties. At the time, TPL’s holdings included approximately 1.8 million acres across 28 counties in Texas. Between 1980 and 1995, TPL bought back stock more quickly than it sold land, reducing its outstanding shares by 34% and its land inventory by only 8%, to 1.1 million acres.

In 2010, the introduction of hydraulic fracturing and horizontal drilling unlocked oil and gas within the Permian shale, where TPL owned approximately 909,000 acres of land. In 2016, there was a significant discovery of oil and gas reserves in the southern portion of the Delaware Basin in Reeves County where the company owned substantial land. Subsequently, the company’s annual revenue rose from $66 million in 2016 to $451 million in 2021.

In 2019, TPL settled a months-long proxy fight over the election of trustee Eric Oliver. As part of the settlement, the company established a committee to explore whether Texas Pacific should be converted to a Delaware corporation. In 2021, the company reorganized from a trust to a corporation, was subsequently renamed Texas Pacific Land Corporation, and appointed a board of directors to govern.

Operations

TPL is among the largest private landowners in the State of Texas. As of 2022, the corporation owned approximately 880,000 acres (3,600 km) of land in 20 West Texas counties.

Approximately two-thirds of TPL’s income is derived from oil and gas royalties. Another 30% is derived from supplying and disposing of water used in fracking shale. In June 2017, TPL hired a team from EOG Resources and established the Texas Pacific Water Resources, LLC, a wholly owned subsidiary that offers brackish water sourcing, water disposal, water recycling, and other hydrocarbon extraction related water services.

References

  1. "Texas Pacific Land Corp 2023 Annual Report 10-K". 2023.
  2. "FORM 10-K: Texas Pacific Land Corporation". sec.gov. Retrieved 2024-03-16.
  3. ^ Crowley, Kevin (14 May 2018). "The 130-Year-Old Bankruptcy That Created a $5 Billion Oil Giant". www.bloomberg.com. Retrieved 14 May 2024.
  4. ^ "Dallas company trying to go out of business since 1888 is one of world's hottest stocks". Dallas News. 10 October 2016. Retrieved 14 May 2024.
  5. "TEXAS PACIFIC LAND TO SPLIT ITS SHARES". The New York Times. 6 January 1927. Retrieved 14 May 2024.
  6. "Hunt by Amateur Sleuth Leads to a $4 Million Find". The New York Times. 26 December 1979. Retrieved 17 May 2024.
  7. Weisskopf, Michael (24 December 1979). "Stock Worth $3.2 Million Triggers 5-Way Battle". Retrieved 17 May 2024.
  8. "Texas Pacific Land Trust Votes New Set-Up for Mineral Holdings; TXL Oil Corporation Formed to Manage All Gas and Petroleum Properties of Concern Chartered in 1888". The New York Times. 23 November 1954. Retrieved 17 May 2024.
  9. Weil, Jonathan (4 February 1998). "Texas Pacific Land Trust OffersA Get-Rich-Slow Opportunity - WSJ". WSJ. Retrieved 17 May 2024.
  10. Gell, Aaron (7 August 2014). "One Of The Hottest Stocks On The NYSE Is A Company Most Of Us Have Never Heard Of — And It's Got An Incredible Backstory". Business Insider. Retrieved 14 May 2024.
  11. ^ Alpert, Bill (31 March 2022). "How Rising Oil Prices Turned This Texas Scrubland Into an Energy Stock Worth Fighting Over". Retrieved 14 May 2024.
  12. "Texas land trust settles with Horizon Kinetics-led investor group". 31 July 2019. Retrieved 17 May 2024.
  13. Leffert, Catherine (30 November 2021). "Local public company sparks more disputes with investors amid corporate governance concerns". www.bizjournals.com. Retrieved 17 May 2024.
  14. "The most unusual stock tip I've ever gotten". Dallas News. 7 May 2012. Retrieved 19 May 2024.
  15. "Texas Pacific Land Trust Announces Formation of Water Resources Company". Retrieved 2018-11-27.

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