Texas Pacific Land Corporation (NYSE:TPL) Q4 2023 Earnings Call Transcript

Nate Pendleton: Got it. Thanks for that. And then, shifting over to the water business. Looking back at some of your acquisitions over the past year, can you provide any color on how you see the A&D market for additional SWD infrastructure? And what opportunities there are to further expand your leading position there?

Ty Glover: Yeah. Most of our focus on the produced water side has been acquiring additional pore space. So, you saw a couple of surface acquisitions of pore space easement that we did last year. And so, we just want to make sure that we stay out in front of our operators’ needs and have the appropriate amount of pore space available to meet those needs. So, that’s kind of how we view our part in that business is just continuing with the same business model, being a pore space owner and using our network and relationships to put people together to make sure that water has a place to go and just support the overall development of the basin.

Nate Pendleton: Got it. Thanks. And then, you mentioned pore space. So, staying on that for just a second and taking the CCS angle, now that the U.S. EPA has started approving Class VI permits, and there are some operators injecting CO2 for storage today in Class II wells that qualify for the same credits, can you provide any updates on how you are viewing that opportunity given your expansive ownership?

Ty Glover: Yeah. I mean we’ve talked a little bit about it in the past. We think it’s a great opportunity for us as well. We view it similar in business model to the produced water, where we’ll continue to be a pore space owner. No real interest in building out any infrastructure in that space, but leasing on our pore space for royalty, I think it’s a great opportunity for the company. And so, I think any time we can add pore space, whether it be for produced water or carbon sequestration, it just continues to add more runway to our business long term.

Nate Pendleton: Got it. And the last one for me, is there any update you can provide regarding the status of the appeal related to the stockholders’ agreement litigation?

Ty Glover: Not too much other than oral arguments were yesterday. So, at this point, we’re just waiting on a decision from the court.

Nate Pendleton: Got it. Appreciate you taking my questions.

Ty Glover: Thank you.

Chris Steddum: Thanks.

Operator: Thank you. Ladies and gentlemen, as there are no further questions, that concludes the conference of Texas Pacific Land Corporation. Thank you for your participation. You may now disconnect your lines.