Texas Pacific Land Corporation · NYSE:TPL
Texas Pacific Land — Investor Presentation (December 2021)
27 slides from Texas Pacific Land's investor presentation, Dec 7, 2021
Slide 1: Investor Presentation December 2021
Investor Presentation December 2021 Exhibit 99.1
Slide 2: Disclaimer
| 2NYSE: TPL This presentation has been designed to provide general information about Texas Pacific Land Corporation and its subsidiaries (“TPL” or the “Company”). Any information contained or referenced herein is suitable only as an introduction to the Company. The recipient is strongly encouraged
Slide 3: The Permian Basin "ETF"
| 3NYSE: TPL The Permian Basin “ETF” NYSE: TPL $ $ $ ~21 Years Inventory Below $40/bbl Breakeven(4) Performance Through the Cycle $303 Million 2020 Revenue ~190% Production Growth since 2018(3) Balance Sheet Strength(1) No Debt Cash Balance of $373 Million $200mm+ Dividends Paid in 2020 17 Year Hist
Slide 4: An Unmatched Oil and Gas Investment
| 4NYSE: TPL An Unmatched Oil and Gas Investment Source: FactSet . (1) Based on FactSet compounded total shareholder return from October 2011 to September 2021. (Composite) WTI Oil S&P Oil & Gas E&P Index 10-year Average Annual Total Return(1) -4% -1% 17% 21% 43%
Slide 5: TPL Business Overview
| 5NYSE: TPL 64%6% 30% Unique Exposure to Full Permian Development Chain Ownership of right of way Ownership of groundwater and subsurface injection rights High margins with no capital Surface Provides ease of access TPL Business Overview Business Flow Overview Maximize Surface Ownership to Op
Slide 6: Royalty Interest Overview
| 6NYSE: TPL 21% 11% 8% 12%8% 2% 8% 7% 3% 2% 3% 15% 38.8% 21.6% 19.5% 11.1% 9.0% Net Wells(3): 62.4 Royalty Interest Overview Land and Resource Management Net Royalty Position and Rigs Running on Core TPL Acreage Source: Company data, and Enverus data as of 9/30/21. Note: Rigs on TPL based on inters
Slide 7: High Margin, Fixed-fee Revenue Streams
| 7NYSE: TPL High Margin, Fixed-fee Revenue Streams Strong Performance Through Commodity Price Fluctuations$249 $196 $173 $91 $91 $47 $41 $28 $24 $17 $11 $9 $9 $8 $5 $4 $3 $2 $2 $1 Ex xo n C he vr on Sh el l BP C on oc o EO G Pi on ee r O cc id en ta l D ev on D ia m on db ac k M ar at ho n C ot e
Slide 8: Business Segments Overview
| 8NYSE: TPL 76% 24% 78% 22% $40 $80 $160 $234 $188 $199 3.3 5.1 8.8 13.7 16.2 17.5 (1.0) 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 17.0 19.0 $0 $50 $100 $150 $200 $250 $300 $350 $400 2016 2017 2018 2019 2020 YTD 3Q21 Free Cash Flow Net Production (mboe/d) Source: Company data. Note: Free Cash Flow and Adj
Slide 9: History of TPL
| 9NYSE: TPL History of TPL Source: Company data. (1) A fixed 1/16 NPRI was reserved under all lands held by the primary term of an oil and gas lease and a fixed 1/128 NPRI under all lands held by production. (2) TPWR is a 100% wholly owned subsidiary of TPL. 1871 - 1888 1889 - 2010 2011 - Present T
Slide 10: Key Investment Highlights
| 10NYSE: TPL Key Investment Highlights Sustained Profitability and Pristine Balance Sheet Focus on Return On and Of Capital ETF of the Permian Basin Performance Through the Cycle ■ Largest royalty company with 100% of acreage located in Texas Permian Basin ■ Three high-margin revenue streams linked
Slide 11: Surface Leasing and Materials (SLEM) Overview
| 11NYSE: TPL 0 1,000 2,000 3,000 4,000 5,000 $0 $50 $100 $150 $200 $250 $300 1Q 16 2Q 16 3Q 16 4 Q 16 1Q 17 2Q 17 3Q 17 4 Q 17 1Q 18 2Q 18 3Q 18 4 Q 18 1Q 19 2Q 19 3Q 19 4 Q 19 1Q 20 2Q 20 3Q 20 4 Q 20 1Q 21 2Q 21 3Q 21 C u m u lative H orizon tal W ell C ou n t Sin ce 20 16 (3) C u m u la ti ve S
Slide 12: Water Resources Asset Overview
| 12NYSE: TPL Water Resources Asset Overview Water Services and Operations Source: Company data and RSEG. Note: TPL does not operate any water disposal wells. (1) Water oil ratio (“WOR”) defined as the ratio of 12-month cumulative water production to 12-month cumulative oil production. (2) Revenue r
Slide 13: Water Services: Produced Water Royalties
| 13NYSE: TPL $0 $10 $20 $30 $40 $50 $60 $70 $80 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Produced water royalties ($mm) WTI Cushing ($/bbl) Growth Strategy and Competitive Advantage Water Services and Operation
Slide 14: Northern Delaware Water Volumes and Capture Rate
| 14NYSE: TPL 0% 5% 10% 15% 20% 25% 30% 35% 40% – 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Jan-18 Jul-18 Jan-19 Aug-19 Feb-20 Sep-20 Mar-21 Sep-21 TPW R C apture R ate C om pl et io ns V ol um es (m bb ls / da y) Northern Delaware Region Volumes (Estimated) TPL Nothern Delaware Volumes (Actuals
Slide 15: Summary of Financials
| 15NYSE: TPL 0.3 0.4 0.6 1.1 1.8 2.1 2.3 2015 2016 2017 2018 2019 2020 YTD 3Q21 $55 $63 $145 $245 $302 $239 $258 2015 2016 2017 2018 2019 2020 YTD 3Q21 Summary of Financials Source: Company data. Note: Revenue was restated retrospectively upon adoption of new revenue recognition guidance on 1/1/18.
Slide 16: Return of Capital to Shareholders
| 16NYSE: TPL $2.0 $2.0 $4.3 $2.2 $2.4 $2.5 $10.7 $31.6 $46.6 $64.0 $10.7 $16.0 $20.2 $25.2 $23.0 $28.8 $33.1 $34.2 $38.4 $4.3 $11.2 $12.7 $18.0 $24.5 $25.2 $25.2 $31.2 $35.6 $44.9 $70.0 $50.9 $201.7 $79 $95 $94 $98 $93 $49 $43 $51 $65 $57 $39 $65 – $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.0
Slide 17: An Unmatched Oil and Gas Investment
| 17NYSE: TPL An Unmatched Oil and Gas Investment Source: FactSet. (1) Based on FactSet compounded total shareholder return from October 2011 to September 2021. Sustained Profitability and Pristine Balance Sheet Focus on Return On and Of Capital ETF of the Permian Basin Significant Upside Synergisti
Slide 18: Appendix
Appendix
Slide 19: TPL Revenue Streams Through the Life Cycle of a Well
| 19NYSE: TPL TPL Revenue Streams Through the Life Cycle of a Well Surface and Royalty Ownership Allow Steady Revenue Generation Through the Entire Life Cycle of Oil & Gas Development ■ Infrastructure for oil & gas development Initial Development Phase Drilling and Completion Phase Production Phase
Slide 20: Well Positioned Assets Attract Increasing Development Focus
| 20NYSE: TPL Well Positioned Assets Attract Increasing Development Focus Land and Resource Management Source: Company data and Enverus. Note: TPL production growth giving effect to our portfolio of ~23,700 net royalty acres in the Permian Basin as of 9/30/21 as if it had been owned since 1/1/14. (1
Slide 21: Significant Undeveloped Resource in Core Areas
| 21NYSE: TPL 0% 20% 40% 60% 80% 100% 120% 1 626 1,251 1,876 2,501 3,126 3,751 4,376 5,001 5,626 6,251 6,876 7,501 8,126 8,751 9,376 10,001 10,626 11,251 11,876 12,501 13,126 13,751 14,376 15,001 15,626 16,251 16,876 17,501 18,126 18,751 19,376 W el lh ea d BT ax IR R $0 $10 $20 $30 $40 $50 $60 $70
Slide 22: Summary of Highest-Visibility Inventory
| 22NYSE: TPL 68% 30% 2% 6% 7% 27% 5% 8% 13% 1% 33% 64% 21% 14% 1% 8% 14% 16% 5% 9%4% 19% 25% 76% 15% 6% 3% 3% 19% 31% 5% 6% 7% 7% 22% Summary of Highest-Visibility Inventory Land and Resource Management Source: Company data and Enverus. Note: Permian Basin horizontal locations only as of 9/30/21. (
Slide 23: Summary of Full Inventory
| 23NYSE: TPL Average Additional Total PDP + Total Gross Undeveloped PDP + Total Average Lat. Sub-region NRI NRA DSUs PDP Completed DUCs Permits Undeveloped Locations Locations Resource (Mmboe) Locations / DSU Length (ft.) Northern Delaware 2.3% 9,206 510 1,426 80 253 259 9,973 10,565 11,991 17,136
Slide 24: Royalty Key Terms
| 24NYSE: TPL Gross Royalty Acres Royalty Key Terms Land and Resource Management Net Royalty Acres (Normalized to 1/8) Net Royalty Acres Drilling Spacing Units (“DSUs”) Implied Average Net Revenue Interest per Well Description How’s It Calculated ■ An undivided ownership of the oil, gas, and mineral
Slide 25: Historical Financial Summary
| 25NYSE: TPL Historical Financial Summary Source: Company data. Note: Numbers may not foot due to immaterial rounding. Year ended December 31, Three months ended, ($ in millions) 2019 2020 3Q20 2Q21 3Q21 Total Acres 901,787 880,523 881,335 880,501 880,501 Revenues: Oil and gas royalties $154.7 $137
Slide 26: Non-GAAP Reconciliations
| 26NYSE: TPL Non-GAAP Reconciliations Source: Company data. Note: Numbers may not foot due to immaterial rounding. (1) Land swap of ~$22 million in 4Q19, and sale to WPX in 1Q19 of ~$100 million. (2) Sale of nonparticipating perpetual oil and gas royalty interest in approximately 812 net royalty ac
Slide 27: Texas Pacific Land Corporation
1700 Pacific Avenue, Suite 2900 Dallas, Texas 75201 Texas Pacific Land Corporation
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