Texas Pacific Land Corp (TPL) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Texas Pacific Land Corporation's second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加德州太平洋土地公司 2024 年第二季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Shawn Amini, Investor Relations. Thank you, sir. You may begin.

現在我很高興向您介紹主持人肖恩·阿米尼（Shawn Amini），投資者關係部門。謝謝您，先生。你可以開始了。

Thank you for joining us today for Texas Pacific Land Corporation's second-quarter 2024 earnings conference call. Yesterday afternoon, the company released its financial results and filed its Form 10-Q with the Securities and Exchange Commission, which is availablet on the Investors section of the company's website at www.texaspacific.com.

感謝您今天參加我們德州太平洋土地公司 2024 年第二季財報電話會議。昨天下午，該公司發布了財務業績並向美國證券交易委員會提交了 10-Q 表格，該表格可在該公司網站 www.texaspacific.com 的投資者部分取得。

As a reminder, remarks made on today's conference call may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today. We do not undertake any obligation to update our forward-looking statements in light of new information or future events. For a more detailed discussion of the factors that may affect the company's results, please refer to our earnings release for this quarter and to our recent SEC filings.

提醒一下，今天電話會議的言論可能包含前瞻性陳述。前瞻性陳述存在風險和不確定性，可能導致實際結果與今天討論的結果有重大差異。我們不承擔根據新資訊或未來事件更新我們的前瞻性陳述的任何義務。有關可能影響公司業績的因素的更詳細討論，請參閱我們本季的收益發布以及我們最近向 SEC 提交的文件。

During this call, we will also be discussing certain non-GAAP financial measures. More information and reconciliations about these non-GAAP financial measures are contained in our earnings release and SEC filings. Please also note we may, at times, refer to our company by its stock ticker TPL.

在本次電話會議中，我們也將討論某些非公認會計準則財務指標。有關這些非 GAAP 財務指標的更多資訊和調整表包​​含在我們的收益發布和 SEC 文件中。另請注意，我們有時可能會透過股票代碼 TPL 來提及我們公司。

This morning's conference call is hosted by TPL's Chief Executive Officer, Ty Glover; and TPL's Chief Financial Officer, Chris Steddum. Management will make some prepared comments, after which we will open the call for questions.

今天上午的電話會議由 TPL 執行長 Ty Glover 主持；以及 TPL 財務長 Chris Steddum。管理階層將提出一些準備好的意見，之後我們將開始提問。

Now, I will turn the call over to Ty.

現在，我將把電話轉給 Ty。

Thanks, Shawn. Good morning, everyone, and thank you for joining us today.

謝謝，肖恩。大家早安，感謝您今天加入我們。

Our second-quarter 2024 results demonstrates the overall strength of our business as TPL has positioned itself at the forefront of the Permian Basin's emergence as a world-class resource. Performance was led by another outstanding quarter from our water services and operations segment.

我們的 2024 年第二季業績證明了我們業務的整體實力，因為 TPL 已將自己定位在二疊紀盆地成為世界級資源的前沿。水服務和營運部門的另一個出色季度表現引領了業績。

We set corporate records across virtually every major water performance indicator, water sales revenues, water sales volumes, produced water royalties revenues, produced water royalties volumes, total water segment revenues, total water segment free cash flow and total water segment net income. Our prior investments in the people and commercial development continues to provide a substantial windfall for the company.

我們幾乎在每個主要水績效指標、水銷售收入、水銷售量、採出水使用費收入、採出水使用費量、水部門總收入、水部門自由現金流總額和水部門淨利潤總額方面都創下了企業記錄。我們先前對人員和商業發展的投資繼續為公司帶來了可觀的意外之財。

Honing in on water sales, our team has successfully captured opportunities, both on and off TPL acreage with sales volumes averaging 800,000 barrels per day during this quarter. Upstream operators utilizing simul-frac, trimul-frac, and co-completions as part of their development strategies are driving robust demand for TPL water, as our strategically located infrastructure network has the size and reach to reliably accommodate ever-increasing demand for both brackish and recycled water. Our top five customers for water sales this quarter were Exxon, Conoco, Occidental, EOG and BP. Customer quality doesn't get much better than that.

我們的團隊專注於水銷售，成功抓住了 TPL 區域內外的機會，本季平均每天銷售 80 萬桶。上游營運商利用同步壓裂、三重壓裂和聯合完井作為其發展策略的一部分，正在推動對TPL 水的強勁需求，因為我們戰略性的基礎設施網路的規模和覆蓋範圍能夠可靠地滿足對鹹淡水不斷增長的需求。本季我們水銷售的前五名客戶是埃克森美孚、康菲石油公司、西方石油公司、EOG 和英國石油公司。客戶品質沒有比這更好的了。

On the produced water side, we are reaping the benefits of our prior and ongoing commercial and contracting efforts as upstream and midstream operators drive produced water volumes into TPL's surface acreage. We collected a royalty on over 300 million barrels of produced water this quarter, which represents a 43% increase versus the same quarter last year. Our top customers here, again, represents some of the highest quality operators in the Permian, names like Conoco, BP, Coterra and Occidental.

在採出水方面，隨著上游和中游業者將採出水量引入 TPL 的地表面積，我們正在從先前和正在進行的商業和承包工作中獲益。本季我們對超過 3 億桶採出水收取了特許權使用費，與去年同期相比增加了 43%。我們這裡的頂級客戶再次代表了二疊紀盆地一些最優質的營運商，例如康菲石油公司 (Conoco)、英國石油公司 (BP)、科泰拉 (Coterra) 和西方石油公司 (Occidental)。

For our produced water desalination and beneficial reuse endeavors, procurement and process and equipment testing continues on our 10,000 barrel per day test facility, which we refer to as Phase 2b. We still expect completion of this facility in the middle of next year. CapEx related to these efforts is approximately $4 million year to date.

為了實現我們的採出水淡化和有益再利用，採購、製程和設備測試仍在我們每天 10,000 桶的測試設施上進行，我們稱之為第 2b 階段。我們仍預計該設施將於明年年中竣工。今年迄今為止，與這些努力相關的資本支出約為 400 萬美元。

On the beneficial reuse side, our alfalfa plot is currently operational and going very well, and we continue to make good progress on various permitting processes with regulatory agencies. As we discussed last quarter, we believe produced water desalination and beneficial reuse will potentially play a critical role in providing sustainable produced water solutions that will allow the Permian to maintain robust development activity.

在有益的再利用方面，我們的苜蓿地塊目前正在運作並且進展順利，我們繼續在監管機構的各種許可程序上取得良好進展。正如我們上季度討論的那樣，我們相信采出水淡化和有益再利用將在提供可持續采出水解決方案方面發揮關鍵作用，從而使二疊紀盆地保持強勁的開發活動。

Oil and gas royalty production of approximately 24,900 barrels of oil equivalent per day was up slightly from the previous sequential quarter. Encouragingly, our line of sight inventory has expanded to 19.8 net wells, comprised of 6.3 net permits, 9.5 net drilled and uncompleted wells and 4 net completed but not producing wells. Furthermore, we saw a large ramp in new permit activity during second quarter with 344 gross and five net new permits.

石油和天然氣特許權使用費產量約為每天 24,900 桶石油當量，較上一季略有增加。令人鼓舞的是，我們的視線庫存已擴大到 19.8 口淨井，其中包括 6.3 口淨許可井、9.5 口淨已鑽探和未完工井以及 4 口淨已完工但未生產的井。此外，第二季新許可證活動大幅增加，總計 344 個新許可證，淨新許可證 5 個。

Permitting activity was especially strong in our Loving, Northern Reeves and Central Midland subregions. This level of near-term inventory and new activity gives us a lot of confidence our royalty production can sustain an attractive growth trajectory. For the second quarter 2024, oil and gas royalties comprised 52% of TPL's total consolidated revenues, which makes it the single largest revenue source TPL has. Although commodity price volatility over the last year or so has dampened top line revenue growth versus recent years, we still very much consider oil and gas royalties to be one of the highest quality cash flow streams, not just within the energy industry, but in the market more broadly.

洛夫、北里夫斯和中米德蘭次區域的許可活動尤其強勁。這種近期庫存水準和新活動給了我們很大的信心，我們的特許權使用費產量可以維持有吸引力的成長軌跡。2024 年第二季度，石油和天然氣特許權使用費佔 TPL 合併總收入的 52%，這使其成為 TPL 的單一最大收入來源。儘管過去一年左右的大宗商品價格波動抑制了營收成長，但我們仍然非常認為石油和天然氣特許權使用費是最高品質的現金流之一，不僅在能源行業，而且在整個行業市場更廣闊。

As many of you know, oil and gas royalties provide owners a fixed percentage of revenues and production from oil and gas wells, but without being burdened by any capital costs, almost none of the operating costs. Although they do bear exposure to fluctuating commodity prices, their high-margin capital-light attributes mean that even during periods of depressed commodity prices, royalties can still generate significant positive free cash flow. This is especially pertinent during periods of high and persistent inflation like we've experienced over the last few years. Rise in development expenditures and labor expenses effectively raises the global oil supply cost curve. Thus, for operators to hit the same pre-inflationary return targets, they would need higher commodity prices.

正如許多人所知，石油和天然氣特許權使用費為所有者提供了固定比例的石油和天然氣井收入和產量，但沒有任何資本成本的負擔，幾乎沒有營運成本。儘管它們確實面臨大宗商品價格波動的風險，但其高利潤、輕資本的屬性意味著，即使在大宗商品價格低迷時期，特許權使用費仍然可以產生顯著的正自由現金流。在我們過去幾年經歷的高且持續的通貨膨脹時期，這一點尤其重要。開發支出和勞動支出的上升有效拉高了全球石油供應成本曲線。因此，對於營運商來說，要達到相同的通膨前回報目標，他們需要更高的商品價格。

In other words, operators are constantly fighting a battle where cost inflation diminishes their returns unless commodity prices eventually rise commensurately. However, from the royalty owners' perspective, higher upstream development costs do not directly impact our economics. Over the long term, as commodity prices potentially reset higher in response to a structurally higher global supply cost curve, then royalty owners capture the incremental revenue upside without bearing the burden of higher expenses.

換句話說，除非大宗商品價格最終相應上漲，否則營運商一直在進行一場成本通膨降低其回報的戰鬥。然而，從特許權使用費所有者的角度來看，較高的上游開發成本不會直接影響我們的經濟。從長遠來看，由於大宗商品價格可能會因全球供應成本曲線結構性上升而重新走高，因此特許權使用費所有者可以在不承擔更高費用負擔的情況下獲得增量收入的增長。

As we've discussed many times before, over the years, we've actively searched for external assets that look like TPL across service, water and royalties. On the royalty side, specifically, TPL is well positioned to consolidate a vast opportunity set of Permian minerals and royalties. Our current royalty position of 500,000 gross royalty acres provides unique advantages spanning across both the Midland and Delaware portions of the Permian Basin.

正如我們之前多次討論過的那樣，多年來，我們一直在服務、水和特許權使用費方面積極尋找類似於 TPL 的外部資產。具體而言，在特許權使用費方面，TPL 處於有利地位，可以整合二疊紀礦物和特許權使用費的巨大機會。我們目前擁有 50 萬總特許權英畝的特許權使用權地位為跨越二疊紀盆地的米德蘭和特拉華州部分提供了獨特的優勢。

With our industry-leading actively managed surface and water business, we have developed deep relationships with virtually every upstream, midstream and water operator as well as land and mineral estate owners across the basin, giving TPL unique access to off-market packages and extensive intel on development patterns. For potential mineral and royalty acquisitions, we evaluate each package with a bottoms-up intrinsic value approach.

憑藉著業界領先的積極管理的地表和水務業務，我們與流域內幾乎所有上游、中游和水務運營商以及土地和礦產所有者建立了深厚的關係，為TPL 提供了獲得場外套餐和廣泛情報的獨特途徑。對於潛在的礦產和特許權使用費收購，我們採用自下而上的內在價值方法來評估每個包。

The goal with any acquisition is to generate at least double-digit IRRs on invested capital and to generate increased long-term free cash flow per share. Because TPL already owns great assets, we have no interest in diluting down our asset quality, our growth prospects or our unique business model. Any asset acquisition has to enhance the quality of our overall asset portfolio. It has to augment our growth runway. It has to support our high-margin capital-light business model and ultimately, it has to increase TPL's intrinsic value per share.

任何收購的目標都是使投資資本產生至少兩位數的內部報酬率，並增加每股長期自由現金流。由於太平人壽已經擁有大量資產，我們沒有興趣削弱我們的資產品質、我們的成長前景或我們獨特的商業模式。任何資產收購都必須提高我們整體資產組合的品質。它必須擴大我們的成長跑道。它必須支持我們的高利潤輕資本業務模式，並最終提高 TPL 的每股內在價值。

To this end, we employ an excellent team across M&A, reservoir engineering, GIS and minerals and royalties management, all with extensive industry experience. We have internally developed robust technology-driven data management systems that allow us to efficiently process, monitor and manage our mineral and royalty assets, which means we can roll out mineral and royalty assets in a very efficient manner without a proportionate increase in costs.

為此，我們聘請了一支橫跨併購、油藏工程、GIS 以及礦物和特許權使用費管理的優秀團隊，他們都擁有豐富的行業經驗。我們內部開發了強大的技術驅動數據管理系統，使我們能夠有效地處理、監控和管理我們的礦物和特許權使用費資產，這意味著我們可以以非常有效的方式推出礦物和特許權使用費資產，而不會成比例增加成本。

The opportunity set for minerals and royalties is quite large. Although TPL's royalty acreage overlaps with some of the highest-quality subregions in the Permian, there is still plenty of opportunity to consolidate royalties both within our existing acreage footprint, but also within other Permian subregions that also contain excellent resource quality.

礦物和特許權使用費的機會相當大。儘管TPL 的特許權使用費面積與二疊紀一些最高品質的次區域重疊，但仍有許多機會在我們現有的面積範圍內以及同樣擁有優質資源品質的其他二疊紀次區域內整合特許權使用費。

Just within our existing asset footprint, we can buy royalties that are literally identical to what we already own. For example, in our core Texas Northern Delaware acreage, our typical royalty interest for a 1 mile by 1 mile section is generally one-sixteenth or 6.25%. With well laterals today typically extending out to 2 miles, a common drilling section unit or DSU is generally comprised of two adjacent sections. Thus, for a 2-mile well lateral, our section would be one half of that DSU. So our net revenue interest in that well would be one half of 6.25%, resulting in a net revenue interest of 3.125%.

就在我們現有的資產範圍內，我們可以購買與我們已經擁有的資產完全相同的特許權使用費。例如，在我們德克薩斯州北部特拉華州的核心土地中，我們對 1 英里 x 1 英里區域的典型特許權使用費權益通常為十六分之一或 6.25%。如今，井支管通常延伸至 2 英里，常見的鑽井段單元或 DSU 通常由兩個相鄰段組成。因此，對於 2 英里的橫向井，我們的部分將是該 DSU 的一半。因此，我們對該井的淨收入權益將為 6.25% 的一半，從而淨收入權益為 3.125%。

In the state of Texas, where the vast majority of mineral and royalty rights are privately owned, the total aggregate mineral and royalty interest is generally 25%. TPL's average net revenue interest across our entire portfolio is likely between 1% and 2%, which means that the other 23% or so are held by third parties. In other words, just on the DSUs that overlap with the existing TPL royalty acreage, third-party ownership of those minerals and royalties is approximately 10x TPL's net ownership.

在德州，絕大多數礦產權和特許權使用費均為私人所有，總礦產權和特許權使用費總額通常為 25%。TPL 在我們整個投資組合中的平均淨收入利息可能在 1% 到 2% 之間，這意味著其餘 23% 左右由第三方持有。換句話說，僅在與現有 TPL 特許權使用費面積重疊的 DSU 上，這些礦物和特許權使用費的第三方所有權約為 TPL 淨所有權的 10 倍。

Looking beyond our current royalty footprint on the Midland side of the Permian, TPL's royalty position is much more fragmented with much smaller net revenue interest compared to our Texas Northern Delaware footprint. There are numerous subregions within the Midland that contain superb shale reserves where TPL does not have a meaningful position and adding resources here could be just as lucrative and high quality as our current portfolio.

除了我們目前在二疊紀米德蘭一側的特許權使用費足跡之外，TPL 的特許權使用費地位更加分散，與我們德克薩斯州北特拉華州的足跡相比，淨收入利息小得多。米德蘭有許多擁有優質頁岩儲量的次區域，而 TPL 在這些區域中沒有佔據有意義的地位，在這裡增加資源可能與我們當前的投資組合一樣利潤豐厚且質量上乘。

On the Delaware side, TPL's core Texas Northern Delaware royalty position stops at the state line of Texas and New Mexico. Arguably the biggest and most lucrative wells in TPL's portfolio reside in this region. However, the excellent geology that lies under our Texas position extends well into New Mexico, where TPL does not currently own royalties. The resource quality on the New Mexico side is every bit as good as the Texas side and the rock there is widely considered some of the absolute best shale reserves found anywhere in North America, potentially adding mineral and royalty resources there will further high-grade our current royalty position.

在特拉華州一側，TPL 的核心德克薩斯州北特拉華州特許權使用費止於德克薩斯州和新墨西哥州的州邊界。可以說，TPL 投資組合中規模最大、利潤最高的油井就位於該地區。然而，我們位於德克薩斯州的優越地質條件一直延伸到新墨西哥州，而 TPL 目前不擁有該州的特許權使用費。新墨西哥州一側的資源品質與德克薩斯州一側一樣好，那裡的岩石被廣泛認為是北美任何地方發現的絕對最好的頁岩儲量，潛在地增加了那裡的礦物和特許權使用費資源，這將進一步提高我們的品味。

One last way to contemplate the sheer size of the overall consolidation opportunity is to consider that the Permian currently produces north of 6 million barrels of crude oil per day. Assuming that the aggregate mineral and royalty interest held by third parties is around 20% across Texas and New Mexico and excluding production on federal and state lands would imply that roughly 1 million barrels per day of crude oil production is held by private mineral and royalty owners. Contrast that with TPL's current net crude oil royalty production of approximately 11,000 barrels per day. In other words, TPL's royalty production, ourselves one of the largest royalty owners in the country still only represents a miniscule fraction of the total production accruing to mineral and royalty owners in the Permian.

考慮整體整合機會的規模的最後一個方法是考慮二疊紀盆地目前每天生產超過 600 萬桶原油。假設德州和新墨西哥州第三方持有的礦產和特許權使用費總額約為20%，並且不包括聯邦和州土地上的生產，這意味著私人礦產和特許權擁有者持有每天約100 萬桶原油產量。相較之下，TPL 目前的原油特許權使用費淨產量約為每天 11,000 桶。換句話說，TPL 的特許權使用費產量（我們自己是全國最大的特許權使用費所有者之一）仍然只佔二疊紀礦物和特許權使用費所有者應得總產量的一小部分。

In summary, we believe Permian oil and gas royalties are some of the most attractive assets investors can own. The opportunity set to acquire high-quality mineral and royalty assets is immense and with TPL's extensive network and deep relationships from our legacy royalty and surface ownership, we have a unique combination of off-market deal access, technical wherewithal and a fortress balance sheet to roll out Permian minerals and royalties that public equity investors would not otherwise have access to.

總而言之，我們認為二疊紀石油和天然氣特許權使用費是投資者可以擁有的最具吸引力的資產之一。收購高品質礦產和特許權使用費資產的機會是巨大的，憑藉TPL 的廣泛網絡以及我們傳統特許權使用費和地表所有權的深厚關係，我們擁有場外交易准入、技術資金和堡壘資產負債表的獨特組合，推出公共股權投資者原本無法獲得的二疊紀礦產和特許權使用費。

As our current royalty and surface footprint is already a free cash flow machine, and with plenty of runway for future growth, we can remain selective. We don't need to acquire anything to grow. Any M&A pursuits can be purely opportunistic. We can discerningly consolidate assets that will enhance the company's intrinsic value per share, and we can and will remain disciplined. This has been the same strategy we've deployed for years now, and it's one that has served TPL and our shareholders well. And now as the Permian has emerged as an unequivocally world-class resource basin, TPL has never been in a better position to beneficially exploit this tailwind in our own backyard.

由於我們目前的特許權使用費和占地面積已經是一台自由現金流機器，並且擁有充足的未來成長跑道，因此我們可以保持選擇性。我們不需要獲得任何東西來成長。任何併購活動都可能純粹是機會主義的。我們可以明智地整合資產，從而提高公司每股的內在價值，我們可以而且將會保持紀律。這與我們多年來所採用的策略相同，而這項策略為 TPL 和我們的股東提供了良好的服務。現在，隨著二疊紀盆地已成為一個明確的世界級資源盆地，TPL 處於前所未有的有利位置，可以在我們自己的後院充分利用這一順風車。

Finally, I want to give shareholders a heads up that TPL will be ringing the opening bell at the New York Stock Exchange next Monday, August 12. TPL common stock and its predecessor Sub-shares from our trust days have been listed on the NYSE since June 27, 1888, making this our 136-year anniversary. We're told by the NYSE that TPL is their seventh longest listed company.

最後，我想提醒各位股東，TPL 將於下週一（8 月 12 日）在紐約證券交易所敲響開盤鐘。TPL 普通股及其前身信託日的子股自 1888 年 6 月 27 日起在紐約證券交易所上市，今年是我們的 136 週年紀念日。紐約證券交易所告訴我們，TPL 是其上市時間第七長的公司。

This also comes off our recent inclusion into the S&P 400, which is another great milestone. There are not many companies that have had a history as long-standing or colorful as TPL. And even though TPL may be one of the oldest public companies in existence, there's still a lot to be excited about for our future. The enterprise today is as strong as profitable as it's ever been. The opportunity set has never been greater, and the company is primed to last another 100-plus years.

這也是我們最近被納入 S&P 400 指數的結果，這是另一個偉大的里程碑。像TPL這樣歷史悠久、豐富多彩的公司並不多。儘管 TPL 可能是現存最古老的上市公司之一，但我們的未來仍然有很多值得興奮的地方。今天的企業一如既往地強大和盈利。機會從未如此巨大，公司已準備好再持續 100 多年。

With that, I'll hand the call over to Chris.

這樣，我就把電話轉給克里斯。

Thanks, Ty.

謝謝，泰。

Consolidated revenues during the second quarter of 2024 were approximately $172 million. Consolidated adjusted EBITDA was $153 million, and adjusted EBITDA margin was 89%. Diluted earnings per share was $4.98, which represents 14% year-over-year growth. Performance year over year was driven by high royalty production, water sales and produced water royalties.

2024 年第二季的合併收入約為 1.72 億美元。合併調整後 EBITDA 為 1.53 億美元，調整後 EBITDA 利潤率為 89%。稀釋後每股收益為 4.98 美元，較去年同期成長 14%。業績年增率是由高特許權使用費、水銷售和採出水特許權費所推動的。

As discussed last quarter, weak natural gas prices at the Waha hub, which is a local pricing hub in West Texas led to low realized natural gas prices. Average benchmark Waha prices during second quarter 2024 were negative, and that negative pricing has persisted into early third quarter so far.

如上季所討論的，瓦哈中心（西德州的當地定價中心）天然氣價格疲軟導致天然氣實際價格較低。2024 年第二季娃哈的平均基準價格為負值，且迄今為止，負值價格一直持續到第三季初。

Weak pricing is, in a large part, due to insufficient natural gas pipeline capacity out of the Permian Basin. However, the Matterhorn natural gas pipeline is expected in service later this year. And once in service, we would expect to see reduced locational basis differentials.

定價疲軟在很大程度上是由於二疊紀盆地天然氣管道輸送能力不足。然而，馬特宏峰天然氣管道預計將於今年稍後投入使用。一旦投入使用，我們預計位置差異將會減少。

Last June, we announced that we have set a target cash and cash equivalents balance of approximately $700 million. Above this targeted level, TPL will seek to deploy the majority of its free cash flow towards share repurchases and dividends. In conjunction with this announcement, we also declared a $10 per share special dividend.

去年六月，我們宣布將現金和現金等價物餘額目標設定為約 7 億美元。高於這一目標水平，太平人壽將尋求將其大部分自由現金流用於股票回購和股息。結合本公告，我們也宣布派發每股 10 美元的特別股息。

Our cash and cash equivalents balance at the end of the second quarter 2024 as of June 30 was approximately $895 million, though the $10 per share special dividend was paid in July with a total outlay of approximately $230 million. The target cash balance is intended to provide a framework and some predictability on how the company will allocate cash.

截至 6 月 30 日，我們的 2024 年第二季末的現金和現金等價物餘額約為 8.95 億美元，儘管 7 月份支付了每股 10 美元的特別股息，總支出約為 2.3 億美元。目標現金餘額旨在為公司如何分配現金提供一個框架和一定的可預測性。

The company continues to generate substantial free cash flow, while maintaining a pristine balance sheet. Even beyond this most recent special dividend, the company still retains tremendous optionality to return additional capital to stockholders and to invest in attractive growth opportunities. We're very much in a position of strength to maximize shareholder value, and we're excited about the opportunities and option value our business can generate.

該公司繼續產生大量自由現金流，同時保持原始的資產負債表。即使除了最近的特別股息之外，該公司仍然保留巨大的選擇權，向股東返還額外資本並投資於有吸引力的成長機會。我們非常有能力實現股東價值最大化，我們對我們的業務可以產生的機會和選擇權價值感到興奮。

And with that, operator, we will now take questions.

接線員，我們現在開始提問。

(Operator Instructions) Nate Pendleton, Texas Capital.

（操作員說明）Nate Pendleton，德克薩斯州首府。

Starting on the quarter, you posted really strong revenue and volume numbers for both water sales and produced water. Can you speak to the drivers of the sequential increases we are seeing there? And can you touch on the sustainability of those results given the couple of quarters of increases?

從本季開始，你們發布了非常強勁的水銷售和產出水收入和銷售數據。您能談談我們所看到的連續成長的驅動因素嗎？鑑於這幾個季度的成長，您能否談談這些結果的可持續性？

Yes, Nate, thanks for the question. I think on the source water side, 73% of our sales this quarter were off of our footprint outside of TPL's acreage. So that number continues to grow and we were over 70% last quarter as well. So the team has done a really good job of just expanding our reach, selling water further and further outside of our footprint. The team has also done a really good job of building additional storage and infrastructure that's allowing us to sell more barrels per day.

是的，內特，謝謝你的提問。我認為在水源方面，本季我們 73% 的銷售額都來自 TPL 以外的地區。所以這個數字還在持續成長，上個季度也超過了 70%。因此，團隊在擴大我們的影響範圍、在我們的足跡之外越來越遠地銷售水方面做得非常好。團隊在建造額外的儲存和基礎設施方面也做得非常好，這使我們能夠每天銷售更多的桶子。

And then I think just with simul-frac and trimul-frac, the volumes needed delivered to location are continuing to grow. And that's a real advantage for us because we're one of the few water service operators that have the ability to actually supply those kind of volumes. I think on the produced water side, we've had a few new tie-ins this quarter that brought some water in, but a lot of that additional volume is in areas where we have existing contracts.

然後我認為僅通過同步壓裂和三重壓裂，運送到現場所需的數量就會繼續增長。這對我們來說是一個真正的優勢，因為我們是少數有能力實際供應此類水量的供水服務業者之一。我認為在採出水方面，我們本季度有一些新的配套，帶來了一些水，但其中很大一部分額外量是在我們現有合約的領域。

And so we're seeing some really robust activity in those areas, where we've got some of those larger AMI style agreements that we've talked about in the past. And then with co completions, you're just -- you're seeing some lumpier volumes as well, and we're very well positioned to take those volumes. We've got a lot of active capacity, a lot of permitted capacity.

因此，我們在這些領域看到了一些非常活躍的活動，我們在這些領域達成了一些我們過去討論過的更大的 AMI 風格協議。然後，隨著共同完井，你也會看到一些塊狀的體積，而我們處於非常有利的位置來接收這些體積。我們有大量的活躍產能，大量的許可產能。

And so there's definitely some room to grow from an infrastructure standpoint. And even though we don't operate that infrastructure, our BD and water teams do a great job of making sure we're working with our water midstream partners to make sure that additional capacity is available for operators in those areas to meet their needs and make sure we don't bottleneck.

因此，從基礎設施的角度來看，肯定還有一些成長空間。即使我們不運營該基礎設施，我們的 BD 和水務團隊也做了出色的工作，確保我們與水務中游合作夥伴合作，確保這些地區的運營商能夠獲得額外的容量來滿足他們的需求並確保我們不會出現瓶頸。

So I think it is sustainable. We've had a really strong first half of the year. I think we'll continue to see good pace of development. Back half of the year could be a little softer than the first half, but I think overall, we're setting up to have a really nice 2024, both on the source water and the produced water side.

所以我認為這是可持續的。今年上半年我們的表現非常強勁。我認為我們將繼續看到良好的發展速度。今年下半年可能會比上半年溫和一些，但我認為總體而言，我們將迎來一個非常美好的 2024 年，無論是在水源水方面還是在產出水方面。

Definitely. And regarding the increase in net well inventory you referenced in your prepared remarks, how do you view the outlook for activity in the near term? And can you speak to how you expect the oil cut to trend over time?

確實。關於您在準備好的發言中提到的淨油井庫存的增加，您如何看待近期活動的前景？您能談談您對石油減產隨著時間推移的趨勢的預期嗎？

Nate, this is Chris. Yes, when we look at that near-term inventory, it's obviously very encouraging, and it sets us up for a lot of the potential growth over the near term. Now obviously, a lot of those DUCs and permits have to be converted.

內特，這是克里斯。是的，當我們看到近期庫存時，這顯然非常令人鼓舞，它為我們在短期內實現大量潛在成長奠定了基礎。顯然，現在很多 DUC 和許可證都需要轉換。

But I think the good news is, like we said, we have four cups and those tend to come on fairly quickly and the checks get in the mail a few months after that. So that -- I think that speaks to a strong position for the remainder of the year and the permits and DUCs, those get converted off to present a pretty strong position for the beginning of 2025.

但我認為好消息是，正如我們所說，我們有四個杯子，而且這些杯子往往很快就會收到，支票會在幾個月後收到郵件。因此，我認為這說明了今年剩餘時間以及許可證和 DUC 的強勢地位，這些都被轉換為在 2025 年初呈現出相當強勢的地位。

As far as the oil cut, I think something kind of in the mid 40%, is a pretty reasonable number to expect. It can bump around. As new wells come on, they tend to have higher oil cuts and then over time, oil decreases. But overall, we've consistently kind of been in that mid-40% oil cut range. And I think that's a pretty reasonable place to expect it to continue over the near term.

至於石油減產，我認為 40% 左右是一個相當合理的預期數字。它可以顛簸。隨著新井的投產，它們的含油量往往會更高，然後隨著時間的推移，含油量會減少。但總體而言，我們一直處於 40% 左右的減油範圍內。我認為這是一個相當合理的預期它會在短期內持續下去。

And going back to the prepared remarks regarding the minerals A&D market. Can you provide some perspective on what the ideal deal sizes your team is looking at and some of the key criteria your team is using to assess potential deals across the portfolio?

回到準備好的有關礦物 A&D 市場的評論。您能否就您的團隊正在考慮的理想交易規模以及您的團隊用於評估整個投資組合中的潛在交易的一些關鍵標準提供一些看法？

Yes. I mean I would say we're definitely more focused on deal quality than deal size. I mean, some deals are small enough. They're not worth the brain damage and your larger deals have less competition. But again, just to reinforce, we're focused more on deal quality than deal size.

是的。我想說的是，我們肯定更關注交易品質而不是交易規模。我的意思是，有些交易規模夠小。它們不值得你腦部受傷，而且你的大交易競爭也較少。但再次強調，我們更關注交易品質而不是交易規模。

Okay, got it. Regarding recent earthquakes in the Permian. Can we get your perspective on what you're hearing from the industry and any potential impacts on your acreage that you can speak to?

好的，明白了。關於最近二疊紀的地震。我們能否了解您對行業的看法以及您可以談論的對您的種植面積的任何潛在影響？

Yes. There was recently a 5.0 in Scurry County, which is -- a good way is probably 100 miles for many of our closest operations. So we haven't been affected by that one. Robert Crain is on the call. I'll kick that over to you, Robert, just to talk about some of the others that we've had and kind of how you view that in relation to our operations.

是的。最近，斯庫裡縣有一個 5.0 英里的路段，對於我們許多最近的營運機構來說，一個好的距離可能是 100 英里。所以我們沒有受到那件事的影響。羅伯特·克雷恩正在通話中。我將把這個問題交給你，羅伯特，只是談談我們已經擁有的其他一些，以及你如何看待與我們的運營相關的問題。

Yes. Thanks, Ty. Real quick on the Scurry County, as Ty mentioned, good distance away from any of our operational areas. Road commission is investigating. And I think it's in nature. It's going to be a little bit different from some of the seismic activity that you see more in our acreage, mainly due to the lower water injection rates over there and a possible contribution from EOR activities that are occurring in that area.

是的。謝謝，泰。正如泰所提到的，斯庫裡縣的速度非常快，距離我們的任何作戰區域都很遠。道路委員會正在調查。我認為這是自然的。這與您在我們地區看到的一些地震活動略有不同，主要是由於那裡的注水率較低以及該地區發生的 EOR 活動可能造成的影響。

But when we go back to the historic seismic activity that we've seen in the Delaware and the Midland Basin, on a significant decline. Operators and regulators worked very well together to identify the cause of those with this deep disposal and you've seen significant curtailments and shut-ins of the majority of deep disposal wells and all of the contributing deep disposal wells, benefit to us. As you've seen, now those deep disposal volumes need to go into more shallow formations. A good deal of which are located on our properties.

但當我們回顧歷史上特拉華州和米德蘭盆地的地震活動時，我們發現地震活動顯著下降。營運商和監管機構通力合作，找出了深層處置井的原因，並且您已經看到大多數深層處置井和所有貢獻的深層處置井的大幅削減和關閉，這對我們有利。正如您所看到的，現在這些深層處置量需要進入更淺的地層。其中許多都位於我們的房產內。

That's really encouraging. And then last one for me. Regarding your prior announcement to target cash position of $700 million on the balance sheet. Can you provide some perspective on how you arrived at that level and how the team makes the decision between using that cash for share buybacks or dividends for a given period?

這確實令人鼓舞。然後是我的最後一張。關於您先前宣布的資產負債表現金部位目標為 7 億美元。您能否提供一些觀點，說明您是如何達到這一水準的，以及團隊如何在特定期間內使用這些現金進行股票回購或股利的決定？

Yes. Nate, this is Chris. I think the way that we've kind of targeted the absolute number is just thinking about opportunistically how much cash would you want to have to kind of be -- to be effective in the market. And that could be both for potential buybacks as well as potential M&A. And we felt like that level of cash gave us a significant advantage in the market that if there were great opportunities out there, we would be in a position to act quickly on them.

是的。內特，這是克里斯。我認為我們以絕對數字為目標的方式只是機會主義地考慮你需要多少現金才能在市場上發揮作用。這可能既適用於潛在的回購，也適用於潛在的併購。我們認為，這樣的現金水準為我們帶來了市場上的顯著優勢，如果存在巨大的機會，我們將能夠迅速採取行動。

And then as far as like how it gets deployed, I think we've spent a lot of time talking about it, but it's really just fundamentally return driven. We're looking to see where we can get the best risk-adjusted returns. And if that's buybacks, we're going to put more of that money toward buybacks if that's potentially adding third-party acreage, whether it's surface royalties, water related, we're going to try to put more on there.

至於如何部署，我認為我們已經花了很多時間討論它，但它實際上只是從根本上回報驅動。我們正在尋找在哪裡可以獲得最佳的風險調整回報。如果這是回購，我們將投入更多資金用於回購，如果這可能會增加第三方面積，無論是地表使用費、水相關的，我們都會嘗試投入更多資金。

And if we think that neither of those two opportunities are sufficiently attractive, then a lot of times that gets moved toward a dividend. So that's kind of the framework that we've tried to always use is try to put it towards the best risk-adjusted returns. And again, like we said, once we feel like we kind of have that sufficient capital to be competitive and effective, then at that point, it just makes sense to return all the remaining excess cash flow, which continues to be very robust to our shareholders.

如果我們認為這兩個機會都沒有足夠的吸引力，那麼很多時候就會轉向股息。因此，我們一直嘗試使用的框架是嘗試將其實現最佳的風險調整回報。再說一遍，就像我們說的，一旦我們覺得我們擁有足夠的資本來保持競爭力和效率，那麼在那時，返還所有剩餘的超額現金流就有意義了，這對我們的業務仍然非常強勁。股東。

Hamed Khorsand, BWS Financial.

Hamed Khorsand，BWS Financial。

So my first question was regarding the your intention or evaluation of acquiring more loyalty interest. Is it feasible to actually acquire anything in the Permian, just given what you've said, it is a premier asset area? Or are you trying to leverage the lower nat gas prices at the moment to find deals out there?

所以我的第一個問題是關於您獲得更多忠誠利益的意圖或評估。鑑於您所說的，二疊紀是一個首要的資產區域，實際上在二疊紀收購任何東西是否可行？或者您正在嘗試利用目前較低的天然氣價格來尋找交易？

Thanks for the question. The Permian is a premier basin, but we're still seeing a lot of opportunity to acquire high-quality assets, like I talked about a little bit in the prepared remarks. A lot of those assets are within the same footprint that we already own. A lot of times in the same DSU. And so that market is still very fragmented, there are a lot of interest trading hands.

謝謝你的提問。二疊紀是一個主要盆地，但我們仍然看到許多獲得優質資產的機會，就像我在準備好的演講中談到的那樣。其中許多資產都在我們已經擁有的同一佔地面積內。在同一個 DSU 中多次出現。因此，市場仍然非常分散，有許多利益交易者。

So I think we'll continue to see a lot of opportunity on that front. And with the intelligence that we gained through our surface and water business and access to off-market deals, I think we've got an advantage on a lot of other buyers in the basin as well.

所以我認為我們將繼續在這方面看到很多機會。憑藉我們透過地表和水務業務以及獲得場外交易獲得的情報，我認為我們也比該流域的許多其他買家擁有優勢。

Okay. And then on the water segment side, what is the -- where is the issue? Is it competition? Is it other sources as far as not being able to sell as much water to the people on your land that you have to go outside of your -- the area that you cover?

好的。那麼在水務領域，問題出在哪裡？是競爭嗎？是否有其他來源無法向您土地上的人們出售盡可能多的水，而您必須走出您所覆蓋的區域？

Well, I think if I understand your question correctly, is there competition for wells being completed on our land. I think to answer that, the reason that we're selling more and more water off of our footprint is just to expand the business, capture more of the overall Permian market. So we're still sourcing a ton of completions and providing volumes on our land.

好吧，我想如果我正確理解你的問題，我們土地上正在完成的水井是否存在競爭。我想回答這個問題，我們銷售越來越多的水的原因只是為了擴大業務，佔領更多的整個二疊紀市場。因此，我們仍在採購大量的竣工項目並在我們的土地上提供數量。

We just continue to expand our infrastructure and network to sell more water off of our land, and that's how we've been able to capture more of the overall market to increase our overall daily production and sales and that's why you're seeing the increase in revenue. And a big shout out to the team, the water team and the BD team. I think we started last year at roughly 50% of our sales were off of our footprint, and they've been able to grow that to 73% this quarter. So they've done a tremendous job there.

我們只是繼續擴大我們的基礎設施和網絡，以從我們的土地上出售更多的水，這就是我們如何能夠佔領更多的整體市場，以增加我們的整體日常生產和銷售，這就是為什麼你會看到成長在收入方面。並向團隊、水團隊和 BD 團隊大聲喊叫。我認為從去年開始，我們大約有 50% 的銷售額超出了我們的足跡，而本季度他們已經將這一數字增長到了 73%。所以他們在那裡做得非常出色。

We have reached the end of the question-and-answer session. And with that, the conclusion of today's call. Ladies and gentlemen, thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

我們的問答環節已經結束。今天的電話會議到此結束。女士們、先生們，感謝您的參與。此時您可以斷開線路，度過美好的一天。