Texas Pacific Land Q2 revenue and net income hit records on higher oil prices
TPL•Overview
- US land and royalty owner's Q2 revenue and net income hit record highs
- Adjusted EBITDA for Q2 declined sequentially and missed consensus, but only two analyst estimates provided
- Results driven by higher oil and gas royalty production and increased realized prices
Company press release: ID:nBw9GMQt9a
Result drivers
- Oil and gas royalty production - Record oil and gas royalty daily production and higher realized prices drove revenue growth
- Produced water royalties - Increased produced water royalty volumes and revenues contributed to results
- Water sales volumes - Water sales revenue declined sequentially due to lower volumes, partially offset by higher realized pricing
Outlook and analyst coverage
- Company did not provide specific financial guidance for the current or future periods
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
- The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
- Wall Street's median 12-month price target for Texas Pacific Land Corp (Dover) is $377.05, about 4.7% below its August 4 closing price of $395.52
