Subsequent Events |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events We evaluated events that occurred after the balance sheet date through the date these financial statements were issued, and the following events that met recognition or disclosure criteria were identified:
Revolving Credit Facility
On October 23, 2025, the Company entered into a credit agreement, which provides for a revolving credit facility (the “Credit Facility”) in the aggregate principal amount of up to $500.0 million, and the ability to request potential increases in the commitments of the lenders of up to an additional $250.0 million; provided that any such request for an increase must be in a minimum amount of $50.0 million or, if less, the amount remaining available for all such increases. The Credit Facility and all borrowings thereunder will mature on October 23, 2029. Borrowings on the facility will generally bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 2.25% to 2.50% based on TPL’s consolidated total leverage ratio. The Credit Facility is initially unsecured, with a springing security interest if TPL’s consolidated total leverage ratio is at or over 2.50 to 1.0, which would then require pledge of stock of subsidiaries. The Credit Facility also contains customary financial and other affirmative covenants, negative covenants, and events of default. The Credit Facility remained undrawn as of November 5, 2025.
Royalty Interest Acquisition
On November 3, 2025, we acquired approximately 17,306 NRA located primarily in the Midland basin in Martin, Howard, Midland, and other counties for an aggregate purchase price of $474.1 million in an all-cash transaction. A deposit for the acquisition of $71.1 million was held in escrow as of September 30, 2025 and is recorded in prepaid expenses and other current assets on the condensed consolidated balance sheet and reported as a cash outflow in the investing section of the condensed consolidated statements of cash flows. The final purchase price and acreage interests are subject to customary closing conditions and adjustments.
Dividends Declared
On November 3, 2025, our Board declared a quarterly cash dividend of $1.60 per share, payable on December 15, 2025 to stockholders of record at the close of business on December 1, 2025.
Proposed Stock Split
On November 3, 2025, our Board approved a three-for-one stock split of the Company’s Common Stock. The stock split is expected to be completed in December 2025, subject to finalization of the effective date as determined by the Board.
The stock split had not yet been effected as of September 30, 2025, and accordingly, the accompanying financial statements and per-share data do not reflect the impact of the stock split. The stock split will be reflected in future financial statements following its effective date. The Board has approved the stock split, subject to there not being any material changes in the Company’s financial condition or results of operations or the market price for the Common Stock that would cause the Board to change its view on the desirability of effecting the stock split.
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