Organization and Description of Business Segments |
9 Months Ended |
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Sep. 30, 2024 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | 听 |
| Organization and Description of Business Segments | Organization and Description of Business Segments 国产福利资源在线播放 (which, together with its subsidiaries as the context requires, may be referred to as 鈥淭PL鈥, the 鈥淐ompany鈥, 鈥渙ur鈥, 鈥渨e鈥 or 鈥渦s鈥) is a Delaware corporation and one of the largest landowners in the State of Texas with approximately 873,000 surface acres of land, principally concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and gas royalty interest (鈥淣PRI鈥) under approximately 85,000 acres of land, a 1/16th NPRI under approximately 371,000 acres of land, and approximately 8,000 additional net royalty acres (normalized to 1/8th) (鈥淣RA鈥) for a collective total of approximately 199,000 NRA, principally concentrated in the Permian Basin.
Our revenues are derived from oil and gas royalties, water sales, produced water royalties, easements and other surface-related (鈥淪LEM鈥) income and land sales.
On January听11, 2021, we completed our reorganization from a business trust, Texas Pacific Land Trust (the 鈥淭rust鈥), organized under a Declaration of Trust dated February 1, 1888 (the 鈥淒eclaration of Trust鈥), into 国产福利资源在线播放, a corporation formed and existing under the laws of the State of Delaware (the 鈥淐orporate Reorganization鈥).
Increase in Authorized Shares of Common Stock
As of December 31, 2023, the Company had authorized shares consisting of 1,000,000 shares of preferred stock, par value $0.01 per share (鈥淧referred Stock鈥), and 7,756,156 shares of common stock, par value $0.01 per share (鈥淐ommon Stock鈥). On March 1, 2024, we filed a Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of the Company (the 鈥淐ertificate of Incorporation鈥) with the Secretary of State of the State of Delaware, pursuant to which the Certificate of Incorporation was amended and restated to provide that the total number of authorized shares of capital stock of the Company be increased to 47,536,936 shares of capital stock, consisting of 1,000,000 shares of Preferred Stock and 46,536,936 shares of Common Stock.
Common Stock Split
On March 26, 2024, we effected a three-for-one stock split in the form of a stock dividend of two shares of Common Stock for every share of Common Stock outstanding to stockholders of record as of March 18, 2024. All shares, stock awards, restricted stock awards (鈥淩SAs鈥), restricted stock units (鈥淩SUs鈥), performance stock units (鈥淧SUs鈥) and per share information have been retroactively adjusted to reflect the stock split. The three-for-one stock split was not applied to shares held as treasury stock. The shares of Common Stock retain a par value of $0.01 per share. Accordingly, an amount equal to the par value of the increased shares resulting from the stock split was reclassified from 鈥淎dditional paid-in capital鈥 to 鈥淐ommon Stock.鈥
Basis of Presentation
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (鈥淕AAP鈥) and on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. The condensed consolidated financial statements herein include all adjustments which are, in the opinion of management, necessary to fairly state the financial position of the Company as of September 30, 2024 and the results of its operations for the three and nine months ended September 30, 2024 and 2023, and its cash flows for the nine months ended September 30, 2024 and 2023. Such adjustments are of a normal nature and all intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this Quarterly Report, and these interim financial statements and footnotes should be read in conjunction with the audited financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2023. The results for the interim periods shown in this Quarterly Report are not necessarily indicative of future financial results.
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, 鈥淏usiness Segment Reporting鈥 for further information regarding our segments.
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