Positioning TPL to Benefit from Substantial Demand for Water Resources
Formed Texas Pacific Water Resources (TPWR)
The Trust formed this new water services segment in June 2017 as it saw a strategic opportunity to capitalize on increasing demand for water by energy businesses in the Permian Basin.
The Trust formed and grew its water business by recruiting the best professionals with extensive water experience from the industry, including personnel from EOG Resources, Inc. One of these individuals is Robert A. Crain, Executive Vice President of TPWR.
The investments we have made for TPWR have proved to be the right business decisions for our shareholders. Since TPWR’s formation in June 2017, TPWR water service and operations revenue has increased ~5x from $4.8MM in 1Q17 to $24.4MM in 4Q18, and we expect to continue down this path as we begin to use more of our available land.
TPWR is still a young, but rapidly-growing business with significant room for growth with the benefit of TPL’s investment and expertise.
Protect Future Value
Despite the tremendous success of this business in the past and the considerable future opportunity still ahead, a dissident group wants to push for potentially drastic changes to the water business at a time when it is well positioned to meet high demand for water offerings in the constrained Permian Basin. Vote here FOR General Don Cook to support The Trust’s strategy for long-term value creation so that shareholders can continue to benefit from this business for many years to come.