Texas Pacific Land Corporation (NYSE:TPL) Q3 2023 Results Conference Call November 2, 2023 9:30 AM ET
Company Participants
Shawn Amini - Finance and IR
Ty Glover - CEO
Chris Steddum - CFO
Conference Call Participants
Derrick Whitfield - Stifel
Hamed Khorsand - BWS Financial
Operator
Greetings, and welcome to Texas Pacific Land Corporation Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Shawn Amini, Finance and Investor Relations. Thank you, Mr. Amini, you may begin.
Shawn Amini
Thank you for joining us today for Texas Pacific Land Corporation’s Third Quarter 2023 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 available on the Investors section of the company’s website at www.texaspacific.com.
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 most recent SEC filings.
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.
This morning’s conference call is hosted by TPL’s Chief Executive Officer, Ty Glover; and Chief Financial Officer, Chris Steddum. Management will make some prepared comments, after which we will open the call for questions. Now, I will turn the call over to Ty.
Ty Glover
Good morning, everyone, and thank you for joining us today. TPL delivered another strong quarter, driven by improving commodity prices and continued performance of our surface and water assets.
Starting with oil and gas royalties, revenues increased 6% sequential quarter-over-quarter as lower royalty production was more than offset by higher oil, natural gas and NGL prices. This past quarter, we’ve heard from operators that development activities were negatively impacted by infrastructure downtime and electricity challenges during the summer heat waves. With those issues having subsided and with some additional natural gas takeaway capacity coming online, we think infrastructure and logistics will be less of a constraint for development in the near term.