Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Texas Pacific Land Corp., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. Federal	106,721)	117,395)	90,920)	44,395)	55,562)
State and local	3,796)	3,835)	2,345)	1,607)	1,930)
Current income tax expense	110,517)	121,230)	93,265)	46,002)	57,492)
Deferred expense (benefit)	1,399)	1,263)	(228)	(2,389)	26,035)
Income tax expense	111,916)	122,493)	93,037)	43,613)	83,527)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current income tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Texas Pacific Land Corp. current income tax expense increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Texas Pacific Land Corp. deferred expense (benefit) increased from 2021 to 2022 and from 2022 to 2023.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Texas Pacific Land Corp. income tax expense increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Texas Pacific Land Corp., effective income tax rate (EITR) reconciliation

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	U.S. Federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective tax rate	21.60%	21.50%	25.60%	19.90%	20.80%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Texas Pacific Land Corp. effective tax rate decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Texas Pacific Land Corp., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Unearned revenue	6,717)	5,621)	5,050)	5,633)	3,741)
Pension plan liability	—)	—)	128)	452)	—)
Stock compensation	2,097)	1,256)	—)	—)	—)
Other	760)	48)	25)	—)	—)
Deferred tax assets	9,574)	6,925)	5,203)	6,085)	3,741)
Property, plant and equipment	(17,532)	(16,958)	(16,037)	(16,314)	(17,030)
Real estate and royalty interests	(33,215)	(30,387)	(28,114)	(28,494)	(27,528)
Pension plan asset	(767)	(731)	—)	—)	—)
Other, net	(425)	—)	—)	(5)	(10)
Deferred tax liabilities	(51,939)	(48,076)	(44,151)	(44,813)	(44,568)
Deferred taxes payable	(42,365)	(41,151)	(38,948)	(38,728)	(40,827)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Texas Pacific Land Corp. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred taxes payable	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Texas Pacific Land Corp. deferred taxes payable decreased from 2021 to 2022 and from 2022 to 2023.

Texas Pacific Land Corp., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred taxes payable	42,365)	41,151)	38,948)	38,728)	40,827)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred taxes payable	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Texas Pacific Land Corp. deferred taxes payable increased from 2021 to 2022 and from 2022 to 2023.

Texas Pacific Land Corp., adjustments to financial statements

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Liabilities
Total liabilities (as reported)	113,202)	104,540)	112,353)	86,451)	86,039)
Less: Noncurrent deferred tax liabilities, net	42,365)	41,151)	38,948)	38,728)	40,827)
Total liabilities (adjusted)	70,837)	63,389)	73,405)	47,723)	45,212)
Adjustment to Total Equity
Total equity (as reported)	1,043,196)	772,887)	651,711)	485,184)	512,137)
Less: Net deferred tax assets (liabilities)	(42,365)	(41,151)	(38,948)	(38,728)	(40,827)
Total equity (adjusted)	1,085,561)	814,038)	690,659)	523,912)	552,964)
Adjustment to Net Income
Net income (as reported)	405,645)	446,362)	269,980)	176,049)	318,728)
Add: Deferred income tax expense (benefit)	1,399)	1,263)	(228)	(2,389)	26,035)
Net income (adjusted)	407,044)	447,625)	269,752)	173,660)	344,763)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Texas Pacific Land Corp., Financial Data: Reported vs. Adjusted

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Texas Pacific Land Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	64.23%	66.88%	59.87%	58.19%	64.98%
Adjusted net profit margin	64.45%	67.07%	59.82%	57.40%	70.29%
Financial Leverage
Reported financial leverage	1.11	1.14	1.17	1.18	1.17
Adjusted financial leverage	1.07	1.08	1.11	1.09	1.08
Return on Equity (ROE)
Reported ROE	38.88%	57.75%	41.43%	36.28%	62.23%
Adjusted ROE	37.50%	54.99%	39.06%	33.15%	62.35%
Return on Assets (ROA)
Reported ROA	35.08%	50.87%	35.33%	30.80%	53.28%
Adjusted ROA	35.20%	51.02%	35.30%	30.38%	57.64%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Texas Pacific Land Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Texas Pacific Land Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Texas Pacific Land Corp. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Texas Pacific Land Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Texas Pacific Land Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	405,645)	446,362)	269,980)	176,049)	318,728)
Revenues	631,595)	667,422)	450,958)	302,554)	490,496)
Profitability Ratio
Net profit margin¹	64.23%	66.88%	59.87%	58.19%	64.98%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	407,044)	447,625)	269,752)	173,660)	344,763)
Revenues	631,595)	667,422)	450,958)	302,554)	490,496)
Profitability Ratio
Adjusted net profit margin²	64.45%	67.07%	59.82%	57.40%	70.29%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 405,645 ÷ 631,595 = 64.23%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 407,044 ÷ 631,595 = 64.45%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Texas Pacific Land Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	1,156,398)	877,427)	764,064)	571,635)	598,176)
Total equity	1,043,196)	772,887)	651,711)	485,184)	512,137)
Solvency Ratio
Financial leverage¹	1.11	1.14	1.17	1.18	1.17
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Total assets	1,156,398)	877,427)	764,064)	571,635)	598,176)
Adjusted total equity	1,085,561)	814,038)	690,659)	523,912)	552,964)
Solvency Ratio
Adjusted financial leverage²	1.07	1.08	1.11	1.09	1.08

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total equity
= 1,156,398 ÷ 1,043,196 = 1.11

² Adjusted financial leverage = Total assets ÷ Adjusted total equity
= 1,156,398 ÷ 1,085,561 = 1.07

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Texas Pacific Land Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	405,645)	446,362)	269,980)	176,049)	318,728)
Total equity	1,043,196)	772,887)	651,711)	485,184)	512,137)
Profitability Ratio
ROE¹	38.88%	57.75%	41.43%	36.28%	62.23%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	407,044)	447,625)	269,752)	173,660)	344,763)
Adjusted total equity	1,085,561)	814,038)	690,659)	523,912)	552,964)
Profitability Ratio
Adjusted ROE²	37.50%	54.99%	39.06%	33.15%	62.35%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Total equity
= 100 × 405,645 ÷ 1,043,196 = 38.88%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 407,044 ÷ 1,085,561 = 37.50%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Texas Pacific Land Corp. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	405,645)	446,362)	269,980)	176,049)	318,728)
Total assets	1,156,398)	877,427)	764,064)	571,635)	598,176)
Profitability Ratio
ROA¹	35.08%	50.87%	35.33%	30.80%	53.28%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	407,044)	447,625)	269,752)	173,660)	344,763)
Total assets	1,156,398)	877,427)	764,064)	571,635)	598,176)
Profitability Ratio
Adjusted ROA²	35.20%	51.02%	35.30%	30.38%	57.64%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 405,645 ÷ 1,156,398 = 35.08%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 407,044 ÷ 1,156,398 = 35.20%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Texas Pacific Land Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Texas Pacific Land Corp. (NYSE:TPL)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Texas Pacific Land Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Texas Pacific Land Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)