Equity |
12 Months Ended |
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Dec. 31, 2021 | |
| Equity [Abstract] | |
| Equity | Equity Corporate Reorganization
On January 11, 2021, TPL completed its Corporate Reorganization, officially changing its name to Texas Pacific Land Corporation. To implement the Corporate Reorganization, the Trust and TPL Corporation entered into agreements and undertook and caused to be undertaken a series of transactions to effect the transfer to TPL Corporation of all of the Trust’s assets, employees, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Corporate Reorganization. The agreements entered into include a contribution agreement between the Trust and TPL Corporation. The Corporate Reorganization was a tax-free reorganization under Section 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended.
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 now an independent public company and its Common Stock is listed under the symbol “TPL” on the New York Stock Exchange.
The Corporate Reorganization only affected our equity structure in that Sub-shares were replaced with shares of Common Stock and net proceeds from all sources were replaced with retained earnings on the consolidated balance sheet.
Stock Repurchase Program
On May 3, 2021, our board of directors approved a stock repurchase program to purchase up to an aggregate of $20.0 million of shares of our outstanding Common Stock. In connection with the stock repurchase program, the Company entered into a Rule 10b5-1 trading plan that generally permits the Company to repurchase shares at times when it might otherwise be prevented from doing so under securities laws. The stock repurchase program expired on December 31, 2021. Repurchased shares are held in treasury. For the year ended December 31, 2021, we repurchased 14,791 shares at an average per share amount of $1,346.
Repurchases of Sub-shares Prior to the Corporate Reorganization
For the year ended December 31, 2020, there were no Sub-shares repurchased. During the years ended December 31, 2019, we repurchased and retired 6,258 Sub-shares.
Dividends
During 2021, we paid total cash dividends of $11.00 per share of Common Stock, consisting of quarterly cash dividends of $2.75 per share of Common Stock in March, June, September and December 2021. During 2020, we paid a cash dividend of $10.00 per Sub-share in March 2020 and special dividends of $16.00 per Sub-share, consisting of $6.00 per Sub-share in March 2020 and $10.00 per Sub-share in December 2020.
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