The company acquired mineral interests across 7,490 NRA in the Midland Basin for $275.2 million and 4,106 NRA in Culberson County for $120.3 million, net of post-closing adjustments. They also acquired 4,120 surface acres in Martin County for $45.0 million.

The company invested $21.7 million in TPWR projects to maintain and enhance water sourcing assets. They also spent $9.9 million on energy-efficient desalination and treatment processes, with $7.4 million capitalized.

The company is exploring opportunities related to renewable energy, environmental sustainability, and technology. This includes evaluating grid-connected batteries, carbon capture, and bitcoin mining facilities.

The company actively manages its surface and royalty interests, leading to increased royalty production and water sales. This is reflected in the increased revenues in both the Land and Resource Management and Water Services and Operations segments.

The company is working with a leading industrial technology and manufacturing firm to develop an energy-efficient desalination and treatment process. Construction has begun on a sub-scale produced water desalination test facility.

The Board approved a stock repurchase program and paid total dividends of $347.3 million, consisting of cumulative regular cash dividends of $5.11 per share and a special dividend of $10.00 per share. This demonstrates a commitment to returning capital to shareholders.

The company's oil and gas royalty revenue is dependent upon market prices for oil and gas, which are subject to fluctuations. The company is also reliant on the management and actions of third parties, over whom they have no control.

TPWR faces challenges, uncertainties, and difficulties frequently experienced in new and rapidly evolving markets, including pricing pressure, volatile operating costs, and increased regulation.

The company and its operators increasingly rely on information technology systems to operate their respective businesses, and the oil and gas industry depends on digital technologies in exploration, development, production, and processing activities.

The company's position as a significant landowner of approximately 873,000 surface acres gives it a distinct advantage over its competitors in the water service business, who must negotiate with existing landowners to source water and then for the right of way to deliver the water to the end user.

The company's sizable land ownership of approximately 873,000 surface acres and commercial sophistication is unique, as neighboring landowners tend to own substantially smaller land positions and/or do not possess the commercial expertise to maximize business opportunities.

Approximately 41% of the company's 2024 revenue was derived from only three customers, two of whom are in the top 10 energy companies in the world. This concentration of business with these three customers is expected given their major presence in the Permian Basin and the company's significant surface lands in the same area.

Although average rig counts during the year ended December 31, 2024 were lower compared to the same period last year, increased drilling and completion efficiencies have allowed operators to maintain robust levels of well development.

General and administrative expenses decreased $12.0 million to $34.5 million for the year ended December 31, 2024 from $46.5 million for the same period of 2023. The decrease in general and administrative expenses during the year ended December 31, 2024 compared to the same period of 2023 was principally related to a reduction in legal and professional fees associated with stockholder matters that occurred during 2023.

TPWR has adapted lead times for ordering parts and equipment to mitigate supply chain issues in the past and will use its best efforts to adapt to additional supply chain issues in the future.

The company has been working with a leading industrial technology and manufacturing firm to develop an energy-efficient desalination and treatment process and associated equipment that can recycle produced water into fresh water with quality standards appropriate for surface discharge and beneficial reuse.

During the year ended December 31, 2024, the company spent $9.9 million on this energy-efficient desalination and treatment process and equipment, of which $7.4 million was capitalized.

The company filed a patent application for the desalination and treatment process and has secured exclusive use-rights for the equipment geared towards produced water applications.

As the company evaluates its current capital structure, capital allocation priorities, business fundamentals, and investment opportunities, it has set a target cash and cash equivalents balance of approximately $700 million. Above this target, it will seek to deploy the majority of its free cash flow towards dividends and share repurchases.

On November 2, 2022, the Board approved a stock repurchase program to purchase up to an aggregate of $250.0 million of outstanding Common Stock. During the year ended December 31, 2024, the company repurchased 30,432 outstanding shares of Common Stock for an aggregate purchase price of $29.2 million.

Cash flows used in investing activities are primarily related to acquisitions and capital expenditures related to the water services and operations segment. Capital expenditures for the years ended December 31, 2024 and 2023 were $29.7 million and $15.0 million, respectively.

The company increased the electrification of its water assets in an effort to reduce costs and mitigate its overall emission profile. Cumulatively through December 31, 2024, $22.3 million of capital has been spent on electric infrastructure.

The company employed practices for the tracking and monitoring of all spills, regardless of whether they are within or outside of regulatory reporting requirements. There were zero spills of produced water in 2024, 2023, and 2022.

Partnership opportunities included developing renewable energy infrastructure across the company's land and developing water infrastructure to support the reuse and recycling of produced water.

Per the U.S. Energy Information Administration (“EIA”), Permian production averaged approximately 6.3 million barrels per day during 2024, which represents the highest annual production ever.

Average oil prices for the year ended December 31, 2024 were relatively flat compared to average oil prices during the same period last year. Oil prices continue to be impacted by certain actions by OPEC+, geopolitics, and evolving global supply and demand trends, among other factors.

Global and domestic natural gas markets have experienced volatility due to macroeconomic conditions, infrastructure and logistical constraints, weather, and geopolitics, among other factors.