Texas Pacific Land Corporation Q1 2023 Earnings Call

And.

Look we really cant comment on expectations of what the spend maybe in the future and so that's.

That's kind of where it's at right now.

Okay, and then on the revenue side.

Could you just talk about this one time revenue that was disclosed in the Q.

What sparked it and you know what your future revenue would be if there if there is any from this arbitration.

Yeah.

Yes.

Effectively.

It was a stipulation that.

Based on what we felt that Chevron was.

I guess over deducting some expenses.

In the past so all of that revenue is associated with past period, where they had probably overcharged on some of the.

Yes.

Some of the expenses on the gas and NGL side.

So I think the right way to think about it is it's effectively kind of a onetime payment to rectify that.

Okay.

So I assume that didnt oil revenue would've been down another $8 million on a normalized basis.

Yes, that's the right way to think about it and again, it's just.

So as we said in some of our prepared remarks.

Compared to last year, and even last quarter.

Across the board, we've seen quite a bit of.

Commodity price weakness.

Okay and then my last question was that.

Also in the Q you disclosed that there was a $3 6 billion and put into the water resource business.

What was that for and is the business itself generating positive free cash flow.

Yes, so the capital.

<unk> is basically in line with the capital, we probably spend each quarter.

Usually it's been about a $12 million capital spend for most years.

The right way to think about that is.

Some of it is the continued electrification of all of our operations. So we are approaching the end of that electrification.

Some of that is purchasing.

Different like.

Lay flat hoses.

Operating equipment that we need day to day.

And you could think of that type of stuff is more like a maintenance capital right. So those will be dollars that we would probably continue to spend in the future to maintain the business and our equipment.

And then some of it is I think we probably said in the past the supply chain have slowed down for some of the key items that you need to operate and so we have also gone out and probably purchased in advance or at least further in advance than we normally would some of the key infrastructure items tanks.

And hoses that we know we're going to need in the future to fulfill customer orders.

And so that's kind of what that number is.

Is in the right way to think about it and if you look at the financials that business had $20 million of positive net income this quarter.

Okay.

And also free cash flow positive free cash flow.

Yes.

Alright I appreciate it thank you.

Thanks, Matt Thanks, Matt.

Thank you very much that was our final question and that concludes the Q&A session as well as the teleconference for today, maybe <unk> and gentlemen, thank you very much for your participation and you may now disconnect your line.

Okay.

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