Exhibit 99.1
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TEXAS PACIFIC LAND CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS
Earnings Call to be held 7:30 am CT on Thursday, February 23, 2023
DALLAS, TX (February 22, 2023) – Texas Pacific Land Corporation (NYSE: TPL) (the “Company” or "TPL") today announced its financial and operating results for the fourth quarter and full year of 2022.
Fourth Quarter 2022 Highlights
Net income of $99.7 million, or $12.95 per share (basic) and $12.94 per share (diluted)

Revenues of $152.7 million

Adjusted EBITDA(1) of $133.9 million

Royalty production of 21.3 thousand barrels of oil equivalent per day

$29.5 million of common stock repurchases

Quarterly cash dividend of $3.00 per share paid on December 15, 2022

As of December 31, 2022, TPL's royalty acreage had an estimated 5.0 net well permits, 7.4 net drilled but uncompleted wells, 2.3 net completed wells, and 57.7 net producing wells.

Full Year 2022 Highlights

Net income of $446.4 million, or $57.80 per share (basic) and $57.77 per share (diluted)

Revenues of $667.4 million

Adjusted EBITDA(1) of $591.8 million

Royalty production of 21.3 thousand barrels of oil equivalent per day

$87.9 million of common stock repurchases

$247.3 million of total cash dividends paid during 2022 (comprised of a $20.00 per share special dividend and $12.00 per share in regular dividends)

Published annual update of Environmental, Social and Governance ("ESG") disclosure including metrics for 2021

(1) Reconciliations of Non-GAAP measures are provided in the tables below.

“For the full year 2022, TPL achieved record results across both of our operating segments, record consolidated adjusted EBITDA, and record earnings per share,” said Tyler Glover, Chief Executive Officer of the Company. “The strong performance reflects the high quality of our underlying assets, the benefits of our active management approach, and the advantages of a vertically integrated business model. We also continue to make progress towards extracting value beyond our legacy revenue streams with opportunities such as carbon capture, grid batteries, renewables, and beneficial water reuse. Looking forward to 2023, although recent commodity prices have experienced some volatility, development activity in the Permian will remain robust. TPL is well positioned to capture value and generate free cash flow, and we look forward to sustaining our positive momentum into the new year.”
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Financial Results for the Fourth Quarter of 2022

The Company reported net income of $99.7 million for the fourth quarter of 2022, an increase of 26.2% compared to net income of $79.0 million for the fourth quarter of 2021.

Our total revenues increased $5.5 million for the fourth quarter of 2022 compared to the same period of 2021, largely driven by a $6.4 million land sale of 6,263 acres and a $4.6 million increase in produced water royalties, principally related to increased volumes. These increases were partially offset by a decrease of $3.6 million in water sales, principally due to a 15.2% decrease in the number of barrels of sourced and treated water sold, and a decrease of $2.9 million in oil and gas royalties. Our share of production was approximately 21.3 thousand barrels of oil equivalent ("Boe") per day for the fourth quarter of 2022 compared to 22.0 thousand Boe per day for the same period of 2021. The average realized price was $51.57 per Boe for the fourth quarter of 2022, compared to $51.53 per Boe for the comparable period of 2021. Our revenue streams are directly impacted by commodity prices and development and operating decisions made by our customers and vary as the pace of development and oil demand varies.

Our total operating expenses of $28.5 million for the fourth quarter of 2022 increased $7.2 million compared to the same period of 2021. The increase in operating expenses is principally related to an increase in share-based compensation expense driven by the graded-vesting accounting method and an increase in ad valorem taxes during the fourth quarter of 2022 compared to the same period of 2021.

Financial Results for the Year Ended December 31, 2022

The Company reported net income of $446.4 million for the year ended December 31, 2022, an increase of 65.3% compared to net income of $270.0 million for the year ended December 31, 2021.

Our total revenues increased $216.5 million for the year ended December 31, 2022 compared to the same period of 2021, largely driven by a $166.0 million increase in oil and gas royalties, a $17.0 million increase in water sales, and a $14.2 million increase in produced water royalties. Our share of production was approximately 21.3 thousand Boe per day for the year ended December 31, 2022 compared to 18.6 thousand Boe per day for the same period of 2021. The average realized price was $60.81 per Boe for the year ended December 31, 2022 compared to $44.14 per Boe for the comparable period of 2021. The increases in water sales and produced water royalties are principally due to increased volumes. Our revenue streams are directly impacted by commodity prices and development and operating decisions made by our customers and vary as the pace of development and oil demand varies.

Our total operating expenses of $105.1 million for the year ended December 31, 2022 increased $16.6 million compared to the same period of 2021. Operating expenses for 2022 increased principally as a result of the Company recording an expense of $8.7 million for ad valorem taxes. Additionally, transfer and treatment expenses have increased as water sales revenue has increased 25.0% during the year ended December 31, 2022 compared to the same period of 2021.

Quarterly Dividend Declared

On February 10, 2023, the Board declared a quarterly cash dividend of $3.25 per share, payable on March 15, 2023 to stockholders of record at the close of business on March 8, 2023.

Stock Repurchase Program

On November 1, 2022, our board of directors approved a stock repurchase program to purchase up to an aggregate of $250 million of our outstanding common stock beginning January 1, 2023.

The Company intends to purchase stock under the 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 that may be implemented by the Company, and will be subject to market conditions, applicable legal requirements and other factors.

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Conference Call and Webcast Information

The Company will hold a conference call on Thursday, February 23, 2023 at 7:30 a.m. Central Time to discuss fourth quarter and year end results. A live webcast of the conference call will be available on the Investors section of the Company’s website at http://www.TexasPacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

The conference call can also be accessed by dialing 1-877-407-4018 or 1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13734727. The telephone replay will be available starting shortly after the call through March 9, 2023.

About Texas Pacific Land Corporation

Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 874,000 acres of land in West Texas, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provide revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fee payments for use of our land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and/or treated produced water, revenue from our oil and gas royalty interests, and revenues related to saltwater disposal on our land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits related to a variety of land uses including midstream infrastructure projects and hydrocarbon processing facilities.

Visit TPL at http://www.TexasPacific.com.

Cautionary Statement Regarding Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on TPL’s beliefs, as well as assumptions made by, and information currently available to, TPL, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,” “expect” and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, references to strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts. You should not place undue reliance on forward-looking statements. Although TPL believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, TPL may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may vary materially and adversely from those envisaged in this news release due to a number of factors including, but not limited to: the potential future impact of COVID-19 on the global and U.S. economies as well as on TPL’s financial condition and business operations; the initiation or outcome of potential litigation; and any changes in general economic and/or industry specific conditions. These risks, as well as other risks associated with TPL are also more fully discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. You can access TPL’s filings with the SEC through the SEC website at http://www.sec.gov and TPL strongly encourages you to do so. Except as required by applicable law, TPL undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.

Contact:

Investor Relations
IR@TexasPacific.com
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FINANCIAL AND OPERATIONAL RESULTS
(unaudited)

Three Months Ended
December 31,
Years Ended
December 31,
2022202120222021
Our share of production volumes(1):
Oil (MBbls)
864 938 3,401 3,076 
Natural gas (MMcf)
3,313 3,455 13,086 12,082 
NGL (MBbls)
548 511 2,208 1,705 
Equivalents (MBoe)
1,964 2,024 7,791 6,795 
Equivalents per day (MBoe/d)
21.3 22.0 21.3 18.6 
Oil and gas royalties (in thousands):
Oil royalties$68,585 $66,803 $307,606 $195,710 
Natural gas royalties14,679 14,564 74,866 40,964 
NGL royalties13,432 18,266 69,962 49,794 
Total oil and gas royalties$96,696 $99,633 $452,434 $286,468 
Realized prices:
Oil ($/Bbl)
$83.16 $74.60 $94.69 $66.62 
Natural gas ($/Mcf)
$4.79 $4.56 $6.19 $3.67 
NGL ($/Bbl)
$26.51 $38.64 $34.25 $31.56 
Equivalents ($/Boe)
$51.57 $51.53 $60.81 $44.14 
(1)TermDefinition
BblOne stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil, condensate or NGLs.
MBblsOne thousand barrels of crude oil, condensate or NGLs.
MBoeOne thousand Boe.
MBoe/dOne thousand Boe per day.
McfOne thousand cubic feet of natural gas.
MMcfOne million cubic feet of natural gas.
NGLNatural gas liquids. Hydrocarbons found in natural gas that may be extracted as liquefied petroleum gas and natural gasoline.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts) (unaudited)


 Three Months Ended
December 31,
Years Ended
December 31,
 2022202120222021
Revenues:  
Oil and gas royalties$96,696 $99,633 $452,434 $286,468 
Water sales19,207 22,783 84,725 67,766 
Produced water royalties19,566 14,934 72,234 58,081 
Easements and other surface-related income10,746 9,760 48,057 37,616 
Land sales and other operating revenue6,491 68 9,972 1,027 
Total revenues152,706 147,178 667,422 450,958 
Expenses:  
Salaries and related employee expenses11,732 8,220 41,402 40,012 
Water service-related expenses4,418 2,734 17,463 13,233 
General and administrative expenses3,492 3,291 13,350 11,782 
Legal and professional fees3,747 2,377 8,735 7,281 
Ad valorem taxes1,878 — 8,734 — 
Land sales expenses55 — 55 — 
Depreciation, depletion and amortization3,153 4,695 15,376 16,257 
Total operating expenses28,475 21,317 105,115 88,565 
Operating income124,231 125,861 562,307 362,393 
Other income (expense), net3,922 (300)6,548 624 
Income before income taxes128,153 125,561 568,855 363,017 
Income tax expense28,422 46,516 122,493 93,037 
Net income$99,731 $79,045 $446,362 $269,980 
Net income per share of common stock
Basic$12.95 $10.21 $57.80 $34.83 
Diluted$12.94 $10.21 $57.77 $34.83 
Weighted average number of shares of common stock outstanding
Basic7,698,487 7,744,868 7,721,957 7,752,027 
Diluted7,705,116 7,744,977 7,726,809 7,752,054 
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SEGMENT OPERATING RESULTS
(dollars in thousands) (unaudited)

Three Months Ended December 31,
20222021
Revenues:
Land and resource management:
Oil and gas royalties$96,696 64 %$99,633 68 %
Easements and other surface-related income9,841 %8,863 %
Land sales and other operating revenue6,491 %68 — %
Total land and resource management revenue113,028 74 %108,564 74 %
Water services and operations:
Water sales19,207 13 %22,783 15 %
Produced water royalties19,566 13 %14,934 10 %
Easements and other surface-related income905 — %897 %
Total water services and operations revenue39,678 26 %38,614 26 %
Total consolidated revenues$152,706 100 %$147,178 100 %
Net income:
Land and resource management$79,623 80 %$58,649 74 %
Water services and operations20,108 20 %20,396 26 %
Total consolidated net income$99,731 100 %$79,045 100 %

Years Ended December 31,
20222021
Revenues:
Land and resource management:
Oil and gas royalties$452,434 68 %$286,468 64 %
Easements and other surface-related income44,569 %32,892 %
Land sales and other operating revenue9,972 %1,027 — %
Total land and resource management revenue506,975 76 %320,387 71 %
Water services and operations:
Water sales84,725 13 %67,766 15 %
Produced water royalties72,234 11 %58,081 13 %
Easements and other surface-related income3,488 — %4,724 %
Total water services and operations revenue160,447 24 %130,571 29 %
Total consolidated revenues$667,422 100 %$450,958 100 %
Net income:
Land and resource management$365,041 82 %$208,897 77 %
Water services and operations81,321 18 %61,083 23 %
Total consolidated net income$446,362 100 %$269,980 100 %
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NON-GAAP PERFORMANCE MEASURES AND DEFINITIONS

In addition to amounts presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we also present certain supplemental non-GAAP measurements. These measurements are not to be considered more relevant or accurate than the measurements presented in accordance with GAAP. In compliance with the requirements of the SEC, our non-GAAP measurements are reconciled to net income, the most directly comparable GAAP performance measure. For all non-GAAP measurements, neither the SEC nor any other regulatory body has passed judgment on these non-GAAP measurements.

EBITDA and Adjusted EBITDA

EBITDA is a non-GAAP financial measurement of earnings before interest, taxes, depreciation, depletion and amortization. Its purpose is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis. We calculate Adjusted EBITDA as EBITDA excluding employee share-based compensation, conversion costs related to our Corporate Reorganization, and severance costs. Its purpose is to highlight earnings without non-cash activity such as share-based compensation and/or other non-recurring or unusual items such as conversion and severance costs. We have presented EBITDA and Adjusted EBITDA because we believe that both are useful supplements to net income in analyzing operating performance.

The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months and years ended December 31, 2022 and 2021 (in thousands):
Three Months Ended
December 31,
Years Ended
December 31,
2022202120222021
 Net income $99,731 $79,045 $446,362 $269,980 
 Add:
Income tax expense 28,422 46,516 122,493 93,037 
Depreciation, depletion and amortization3,153 4,695 15,376 16,257 
 EBITDA 131,306 130,256 584,231 379,274 
 Add:
Employee share-based compensation2,594 — 7,583 — 
Conversion costs related to our corporate reorganization— — — 2,026 
Severance costs— — — 6,680 
Adjusted EBITDA$133,900 $130,256 $591,814 $387,980 



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