Investor Presentaiton
Surface Leases, Easements and Material Sales ("SLEM")
TEXAS
EST 1888
PACIFIC
LAND CORP
Generates Multiple Long-Term Income Streams with No Opex
~874,000 Surface Acres With a Concentration in Core Permian Areas
ā
Extensive position allows our surface to benefit from development
occurring on and adjacent to TPL land
Since 2018, SLEM revenue has represented ~13% of total TPL revenues (1)
Generates majority of its surface revenue from easements related to
pipeline infrastructure
Generates lease and material (caliche) sales revenues
Majority of easements have 30+ year term but subsequently renew every
ten years with an additional payment (initial fee plus ~15%)
TPL SLEM Revenue Tracks the Region's Well Count
Cumulative SLEM Revenue
since 2016(2)
$400
$300
$200
$100
TPL Has Averaged
~$60,000 in SLEM Revenue
for Every Well Drilled On
and Surrounding its Core
Permian Surface Position
9LOL
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
6LOL
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
7,000
6,000
5,000
4,000
3,000
2,000
1,000
Count Since 2016(3)
Cumulative Horizontal Well
TPL Caliche Pad
Surface
procurement
E&P Electrical Easement for Facility on non-TPL Surface
E&P Oil & Gas Pipeline Easement for Facility on non-TPL Surface
E&P Lease Road to Operations on non-TPL Surface
E&P Produced Water Pipeline to
SWD on non-TPL Surface
TPL Caliche Pit
E&P Lease Road on TPL Surface
E&P Oil & Gas Facility
on TPL Surface
E&P Produced Water Easement on TPL Surface
E&P Oil & Gas Pipeline Easement on TPL Surface
E&P Electrical Easement on TPL Surface
E&P Oil & Gas Facility
on non-TPL Surface
TPL Caliche
Pad
SWD on non-TPL
Surface
TPL Caliche
Pad
E&P Producing Oil & Gas
Wells on non-TPL Surface
Non-TPL Surface Acreage
TPL Section Boundary
TPL Surface
SWD on TPL Surface
SLEM Revenue
Well Count
Solar Farm
on TPL Surface
The TPL Surface Position Can't be Replicated Amongst Royalty and Water Companies
Source: Company data and Enverus.
223
(2)
Total revenue adjusted to exclude one-time land swap of $22mm in 2019 and one-time land/royalty sales of $100mm and $19mm in 2019 and 2018, respectively.
SLEM revenue represents TPL's cumulative easements and other surface related income from 1/1/16 through 12/31/22 for Land and Resource management segment.
Cumulative horizontal well count per Enverus in TPL's Northern Delaware Region (~950,000 acres) and TPL's Midland Region (~250,000 acre region around TPL's surface in East Ector, Midland, Upton and
Glasscock Counties).
NYSE: TPL
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