Changes in Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Changes in Equity

Changes in Equity

The following tables present changes in our equity for the nine months ended September 30, 2022 and 2021 (in thousands, except shares and per share amounts):

	Common Stock			Treasury Stock			Additional Paid-in Capital		Accum. Other Comp. Inc/(Loss)		Retained Earnings		Total Equity
	Shares	Amount		Shares	Amount
For the nine months ended September 30, 2022:
Balances as of December 31, 2021	7,744,695	$	78	11,461	$	(15,417)	$	28	$	(1,007)	$	668,029	$	651,711
Net income	—	—		—	—		—		—		97,900		97,900
Dividends paid — $3.00 per share of common stock	—	—		—	—		—		—		(23,224)		(23,224)
Share-based compensation, net of forfeitures	595	—		(595)	800		1,477		—		(796)		1,481
Periodic pension costs, net of income taxes of $2	—	—		—	—		—		8		—		8
Balances as of March 31, 2022	7,745,290	78		10,866	(14,617)		1,505		(999)		741,909		727,876
Net income	—	—		—	—		—		—		118,894		118,894
Dividends paid — $3.00 per share of common stock	—	—		—	—		—		—		(23,188)		(23,188)
Special dividends paid — $20.00 per share of common stock	—	—		—	—		—		—		(154,586)		(154,586)
Share-based compensation, net of forfeitures	104	—		(104)	140		1,851		—		(180)		1,811
Repurchases of common stock	(17,478)	—		17,478	(25,534)		—		—		—		(25,534)
Periodic pension costs, net of income taxes of $2	—	—		—	—		—		8		—		8
Balances as of June 30, 2022	7,727,916	$	78	28,240	$	(40,011)	$	3,356	$	(991)	$	682,849	$	645,281
Net income	—	—		—	—		—		—		129,837		129,837
Dividends paid — $3.00 per share of common stock	—	—		—	—		—		—		(23,132)		(23,132)
Share-based compensation, net of forfeitures	—	—		—	—		2,121		—		(30)		2,091
Repurchases of common stock	(19,071)	—		19,071	(32,915)		—		—		—		(32,915)
Periodic pension costs, net of income taxes of $3	—	—		—	—		—		8		—		8
Balances as of September 30, 2022	7,708,845	$	78	47,311	$	(72,926)	$	5,477	$	(983)	$	789,524	$	721,170

	Sub-share Certificates	Common Stock			Treasury Stock				Accum. Other Comp. Inc/(Loss)		Retained Earnings		Net Proceeds From All Sources		Total Equity
	Shares	Shares	Amount		Shares		Amount
For the nine months ended September 30, 2021:
Balances as of December 31, 2020	7,756,156	—	$	—	$	—	$	—	$	(2,693)	$	—	$	487,877	$	485,184
Net income	—	—	—		—		—		—		50,052		—		50,052
Dividends paid — $2.75 per share of common stock	—	—	—		—		—		—		(21,329)		—		(21,329)
Conversion of Sub-shares into shares of common stock	(7,756,156)	7,756,156	78		—		—		—		487,799		(487,877)		—
Periodic pension costs, net of income taxes of $8	—	—	—		—		—		28		—		—		28
Balances as of March 31, 2021	—	7,756,156	78		—		—		(2,665)		516,522		—		513,935
Net income	—	—	—		—		—		—		57,046		—		57,046
Dividends paid — $2.75 per share of common stock	—	—	—		—		—		—		(21,329)		—		(21,329)
Repurchases of common stock	—	(1,633)	—		1,633		(2,504)		—		—		—		(2,504)
Periodic pension costs, net of income taxes of $8	—	—	—		—		—		29		—		—		29
Balances as of June 30, 2021	—	7,754,523	78		1,633		(2,504)		(2,636)		552,239		—		547,177
Net income	—	—	—		—		—		—		83,837		—		83,837
Dividends paid — $2.75 per share of common stock	—	—	—		—		—		—		(21,312)		—		(21,312)
Repurchases of common stock	—	(6,179)	—		6,179		(8,689)		—		—		—		(8,689)
Periodic pension costs, net of income taxes of $8	—	—	—		—		—		29		—		—		29
Balances as of September 30, 2021	—	7,748,344	$	78	7,812		$	(11,193)	$	(2,607)	$	614,764	$	—	$	601,042

Corporate Reorganization

On January 11, 2021, TPL completed its Corporate Reorganization, officially changing its name to Texas Pacific Land Corporation. To implement the Corporate Reorganization, the Trust and TPL Corporation entered into agreements and undertook and caused to be undertaken a series of transactions to effect the transfer to TPL Corporation of all of the Trust’s assets, employees, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Corporate Reorganization.

Prior to the market opening on January 11, 2021, the Trust distributed all of the shares of Common Stock of TPL Corporation to holders of sub-share certificates (“Sub-shares”) of the Trust, on a pro rata, one-for-one, basis in accordance with their interests in the Trust (the “Distribution”). As a result of the Distribution, TPL Corporation is now a corporation with its Common Stock listed under the symbol “TPL” on the New York Stock Exchange.

Stock Repurchase Program

On March 11, 2022, our board of directors approved a stock repurchase program to purchase up to an aggregate of $100 million of shares of our outstanding Common Stock during 2022. In connection with the stock repurchase program, the Company entered into a Rule 10b5-1 trading plan (the “Trading Plan”) that generally permits the Company to repurchase shares at times when it might otherwise be prevented from doing so under securities laws. Stock repurchases under the Trading Plan began April 18, 2022. The stock repurchase program expires on December 31, 2022. For the nine months ended September 30, 2022, we repurchased $58.4 million (including share repurchases not yet settled).