UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 1-39804 Exact name of registrant as specified in its charter: Texas Pacific Land Corporation State or other jurisdicti ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $147 million, remaining flat compared to Q4 2021 despite higher oil prices, with a modest decline in royalty production [16] - Adjusted EBITDA and net income for the quarter were $130 million and $98 million, respectively, with approximately $507 million in cash before the special dividend [18] Business Line Data and Key Metrics Changes - The surface leases, easements, and materials business (SLEM) saw an uptick in requests for new infrastructure and well pads, particularly in the Northern Delaware region, indicating future development activity [8] - The water segment performed solidly, although some frac jobs were deferred due to operators struggling to procure frac sand, with expectations for increased volumes throughout the year [9] Market Data and Key Metrics Changes - The company reported 200 gross spuds on its royalty acreage in Q1 2022, the highest level since the pandemic, indicating strong overall completions [9] - Crude oil price realizations remained strong, generally $1 or $2 less than WTI Midland, while gas realizations improved over the last six months [17] Company Strategy and Development Direction - The company announced a special dividend of $20 per share, in addition to a $100 million share repurchase plan, reflecting a strong return of capital to shareholders [7] - The company is exploring innovative projects, including behind-the-meter solar projects and discussions on utility-scale renewable projects, Bitcoin mining, and carbon capture [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying business fundamentals remaining constructive, with expectations for continued growth in completions and water sales [7] - The management acknowledged challenges in the supply chain, particularly regarding frac sand, but remains confident in the long-term performance of the water business [24] Other Important Information - The company is advancing discussions on various innovative opportunities and has welcomed new board members to enhance its governance [13] - The company is committed to maintaining flexibility in capital allocation, balancing growth opportunities with shareholder returns [25] Q&A Session Summary Question: Can you offer color on Q1 oil production and overall production trends for the year? - Management noted that Q1 saw high levels of permitting and DUCs, indicating a positive outlook for production activity for the rest of the year [21] Question: What are the best opportunities for balancing growth versus return of capital? - Management indicated that while there are still deals available, the current high commodity prices have made them more cautious about acquisitions, focusing instead on buybacks and dividends [25] Question: Is the drilling activity driven by low inventory or price? - Management confirmed that there has been a drawdown of DUCs, and Q1 marked a quarter where operators began to replenish their inventory [28] Question: How does the sand-sourcing issue affect your customers? - Management stated that the sand-sourcing issue is widespread across the basin, affecting many operators, particularly smaller ones [29] Question: Can you elaborate on the $20 special dividend decision? - Management explained that the decision was influenced by strong cash flow generation and a desire to return excess capital in a high-price environment [36]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 1-39804 Exact name of registrant as specified in its charter: Texas Pacific Land Corporation State or other jurisdict ...

Financial Data and Key Metrics Changes - Texas Pacific Land Corporation (TPL) reported consolidated adjusted EBITDA of $130 million for Q4 2021, with total revenue of $147.2 million, a 98% year-over-year increase from $74.3 million in Q4 2020 [34][7] - Net income for Q4 2021 was $79 million or $10.21 per share, compared to $44.8 million or $5.77 per share in the same quarter of the prior year [35] - For the full year 2021, TPL's revenues reached $451 million, a 49% increase compared to the previous year, while total operating expenses only increased by 4% [15][34] Business Line Data and Key Metrics Changes - Oil and gas royalty production volumes were approximately 22,000 barrels of oil equivalent (Boe) per day in Q4 2021, up from 17,000 Boe per day in Q4 2020, reflecting a 15% growth in royalty production for the full year 2021 compared to 2020 [11][36] - Non-oil and gas royalty revenue streams saw significant growth, with source water royalties increasing by 24% and produced water royalties by 15% year-over-year [13] - The easements and surface-related income decreased modestly year-over-year due to producers focusing on existing infrastructure [14] Market Data and Key Metrics Changes - Commodity prices improved throughout 2021, with TPL's average commodity price realization over 80% higher than in 2020, benefiting from being completely unhedged [12] - The company noted strong development activity in the Permian Basin, particularly in its Loving, Northern Reeves, and Culberson acreage, with increased permitting and completion activities [16][17] Company Strategy and Development Direction - TPL aims to maintain momentum from 2021 into 2022, focusing on long-term value creation and attractive acquisition opportunities in the market [22][23] - The company is exploring next-generation opportunities, including soil carbon sequestration projects to generate carbon credits [21] - TPL's capital allocation strategy remains flexible, with the potential for stock buybacks and increased dividends depending on market conditions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong development activity in the Permian, despite some concerns about the pace of growth compared to 2021 [52] - The company is actively addressing seismicity issues in the Permian, with a focus on sustainable solutions and maintaining communication with operators [54][25] - Management highlighted the importance of their contract structure, which allows TPL to generate fees regardless of produced water disposal challenges [30] Other Important Information - TPL's Board raised the base dividend by $0.25 to $3 per share, reflecting confidence in the company's financial health [38] - The company ended Q4 2021 with $428 million in cash and no debt, indicating a strong balance sheet [37] Q&A Session Summary Question: Insights on return of capital and growth balance - Management indicated flexibility in capital allocation, considering stock buybacks if the stock price remains dislocated, while also having raised the regular dividend [44] Question: Corporate governance and board evaluation process - The Nomination and Governance Committee is handling the evaluation of board changes, with a 90-day timeframe for recommendations [47] Question: Business outlook for the next 6-12 months - Management noted that while strong growth is expected, it may not reach robust double-digit levels due to a slowdown in completion activity [52] Question: Tax misstatement details - Management explained that a misstatement regarding depletion was identified and corrected, with plans to implement controls to prevent future occurrences [57] Question: Strategies for accessing currently unused land - TPL is focused on facilitating easier access for operators to develop their land rather than financing drilling programs [60] Question: Future stock buyback intentions - Management stated that while no new buyback program has been announced, it is under consideration depending on market conditions [61] Question: Growth drivers for oil and gas production - The significant growth in production was attributed to high completion activity in Q2 and Q3 of 2021, with a cautious outlook on organic growth moving forward [68]

Company Overview - Texas Pacific Land Corporation owns approximately 880,000 surface acres of land in West Texas and various oil and gas royalty interests across approximately 456,000 acres[11][13]. - As of December 31, 2021, the company owned 880,581 acres of surface estate and additional royalty interests under 454,671 acres of land in West Texas[94]. - The company’s stock is traded on the NYSE under the ticker symbol "TPL," with 219 registered holders as of January 31, 2022[101]. Financial Performance - For the year ended December 31, 2021, total revenues were $450.96 million, a 48.9% increase from $302.56 million in 2020[18]. - Net income for 2021 was $269.98 million, representing a 53.2% increase from $176.05 million in 2020[18]. - Cash flows from operating activities increased to $265.2 million in 2021 from $207.0 million in 2020, primarily due to higher oil and gas prices and production volumes[119][120]. - Operating income for the year ended December 31, 2021, was $362.39 million, compared to $217.26 million in 2020, indicating improved operational efficiency[125][126]. - EBITDA for the year ended December 31, 2021, was $379.27 million, compared to $234.06 million in 2020[153]. - Adjusted EBITDA for 2021 was $387.98 million, an increase from $239.11 million in 2020[153]. Revenue Breakdown - Oil and gas royalty revenue for the Land and Resource Management segment was $286.47 million in 2021, accounting for 64% of total segment revenue[24]. - Oil and gas royalty revenue reached $286.47 million in 2021, up from $137.95 million in 2020, reflecting a significant recovery in commodity prices[125][126]. - Water Services and Operations segment revenue increased to $130.57 million in 2021, up from $107.42 million in 2020, driven by a 14.7% increase in sourced and treated barrels sold[31]. - Land and Resource Management segment revenues rose by $125.2 million, or 64.2%, to $320.39 million in 2021 compared to $195.14 million in 2020[139]. - Average realized prices for oil increased to $66.62 per barrel in 2021 from $41.13 per barrel in 2020, while natural gas prices rose to $3.67 per Mcf from $1.24 per Mcf[142]. Investments and Capital Allocation - The company invested approximately $11.7 million in Texas Pacific Water Resources LLC projects in 2021, with $6.4 million allocated to electrifying water sourcing infrastructure[32]. - The company has invested in electrifying its water sourcing infrastructure to reduce dependence on fuel and improve operational efficiency[110]. - Total cash and cash equivalents as of December 31, 2021, were $428.2 million, which the company plans to use for business growth, stock repurchases, and dividends[118]. - The company repurchased $19.9 million of shares and paid $85.3 million in dividends during the year ended December 31, 2021[118][124]. Governance and Corporate Structure - The Company converted from a business trust to a Delaware corporation, enhancing governance for stockholders[42]. - The board of directors was established as part of the corporate reorganization, replacing the previous governance structure of trustees[180]. - The Company has instituted a governance framework for overseeing ESG strategies, with annual reviews to assess updates or improvements[41]. - The Board has adopted a Code of Business Conduct and Ethics applicable to all members, ensuring compliance and ethical standards[205]. Internal Controls and Compliance - A material weakness in internal controls over financial reporting was identified, particularly related to accounting for income taxes[64]. - The company identified a material weakness in internal control over financial reporting related to the evaluation of historical tax returns and tax positions, which could lead to material misstatements[163]. - Deloitte & Touche LLP concluded that the company did not maintain effective internal control over financial reporting as of December 31, 2021, due to the identified material weakness[167]. - Management has proposed remediation activities, including implementing controls to evaluate the technical merits of existing tax positions on a quarterly basis[165]. Market and Economic Conditions - The Company’s revenues from oil and gas royalties are dependent on market prices, which are subject to significant fluctuations due to various factors[51]. - The Company’s land sales are subject to substantial fluctuations influenced by national and local economic conditions and development rates[53]. - Oil and gas prices rebounded in 2021, positively impacting oil and gas royalty revenues after a decline in 2020[51]. - Development activity in the Permian Basin significantly improved in 2021 compared to 2020, although it remains below pre-pandemic levels[108]. Employee and Safety Policies - The Company had 92 full-time employees as of December 31, 2021, emphasizing the importance of attracting and retaining skilled professionals[43]. - The Company aims for zero occupational injuries and has implemented safety policies compliant with OSHA standards[46]. Risks and Challenges - The company may face adverse effects from global health threats, such as COVID-19, which could lead to increased operating costs and impact earnings, cash flow, and financial condition[66]. - The Corporate Reorganization may not achieve expected strategic and financial benefits, potentially impacting business operations[67]. - The company faces risks related to stockholder activism, which could hinder business strategy execution and impact trading value[79]. - The stock price may experience significant fluctuations due to various factors, including changes in operating results and market conditions[80].

Financial Data and Key Metrics Changes - Total consolidated revenues increased by 66% year-over-year, reaching $123.7 million in Q3 2021 compared to $74.4 million in Q3 2020 [38] - Net income for Q3 2021 was $83.8 million, or $10.82 per share, up from $46.3 million, or $5.97 per share in the same quarter of the prior year [37] - Adjusted EBITDA for Q3 2021 was $107.6 million, compared to $62.3 million for the same period last year, reflecting an improved adjusted EBITDA margin of 87% [11][38] Business Line Data and Key Metrics Changes - Royalty daily production increased by 24%, reaching approximately 19.5 thousand barrels of oil equivalent per day in Q3 2021, up from 15.7 thousand barrels in Q3 2020 [38] - Water revenue was $36.9 million in Q3 2021, up from $24.5 million in the prior year, driven by increases in both source water sales volumes and produced water royalty volumes [40] Market Data and Key Metrics Changes - The company reported a significant increase in permitting activity, indicating a positive trend for Q4 2021 and into 2022, with strong permitting from major operators like Chevron [50] - The company has a market share of approximately 30% of Northern Delaware source water volumes, with the capability to deliver over 800,000 barrels of water per day [25] Company Strategy and Development Direction - The company emphasizes its vertically integrated business model, which has allowed it to create multiple high-quality cash flow streams from its legacy asset base [9][12] - The focus remains on acquiring high-quality integrated assets that include surface, minerals, and water components, with a cautious approach to potential acquisitions [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, highlighting the ability to fully benefit from rising commodity prices as the company remains unhedged [39] - The management team is optimistic about the future, citing strong relationships with operators and a positive outlook for activity in the Delaware Basin [55][56] Other Important Information - The company declared a cash dividend of $2.75 per common share, with year-to-date dividends totaling $8.25 per share [43] - The company has completed $11.2 million of share repurchases and has $8.8 million remaining on the current repurchase authorization [43] Q&A Session Summary Question: Activity trends in Q4 and 2022 based on permit data - Management noted strong permitting activity in Q3, with a positive outlook for Q4 and 2022 based on the backlog of permits [50] Question: Current opportunities in the A&D market - Management indicated that while the bid-ask spread for high-quality deals has been wider, it is starting to narrow, leading to more opportunities in the market [51][52] Question: Return of capital strategy with strong cash position - Management emphasized the importance of maintaining a healthy cash balance and indicated that returning capital to shareholders could be considered if opportunities do not materialize [53] Question: Impact of changing dynamics in the Permian on negotiations - Management stated that consolidation among legacy operators has been positive for the company, enhancing relationships and prioritizing acreage [55] Question: Expectations for increasing Delaware Basin acreage in 2022 - Management confirmed strong permitting activity in the Delaware Basin and indicated expectations for increased activity going forward [56] Question: Strategic outlook for cash deployment - Management reiterated a focus on high-quality integrated assets and the importance of retaining cash for the right opportunities [62] Question: Potential for special dividends or expanded buyback - Management acknowledged that if the opportunity set does not materialize, both special dividends and increased buybacks could be considered [63] Question: Next-gen wind and solar opportunities - Management highlighted ongoing discussions regarding renewable energy opportunities, emphasizing the importance of relationships with operators [65]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 1-39804 Exact name of registrant as specified in its charter: Texas Pacific Land Corporation State or other juris ...

Financial Data and Key Metrics Changes - For Q2 2021, the company reported net income of $57 million or $7.36 per share, compared to $27.6 million or $3.56 per share in Q2 2020, primarily due to increased oil and gas royalty revenue [16][17] - Total revenue for Q2 2021 was $95.9 million, up from $57.3 million in the same quarter last year, with oil and gas royalty revenue increasing 184% to $58.2 million [17][18] - Average realized oil price was approximately $65 per barrel in Q2 2021, compared to approximately $25 per barrel during the same period last year [17] Business Line Data and Key Metrics Changes - Production during Q2 2021 averaged approximately 16,400 barrels of oil equivalent per day, roughly flat sequentially from Q1 2021 [7] - Produced water royalty revenues increased over 20% sequentially from Q1 2021, benefiting from a one-time catch-up payment [10] - Water revenue was $27.9 million in Q2 2021, up from $21.5 million in the prior year, driven by increases in both source water and produced water royalty volumes [18] Market Data and Key Metrics Changes - The company had 565 gross drilled but uncompleted wells (DUCs) and 474 gross permits as of June 30, indicating ongoing activity in the Permian Basin [8] - The company noted that producers remain disciplined, with activity levels not yet at pre-COVID levels but still active in developing leaseholds [8] Company Strategy and Development Direction - The company positions itself as an "ETF for the Permian Basin," benefiting from multiple cash flow streams throughout the life cycle of a well [12][13] - The management expressed confidence in the asset quality underlying royalties and extensive surface acreage, believing it will create long-term value despite uncertainties related to COVID-19 and commodity prices [14] Management's Comments on Operating Environment and Future Outlook - Management indicated that they expect production in the second half of 2021 to be at least on par with the first half, supported by a robust level of current inventory [9][30] - The management emphasized the importance of maintaining a low leverage profile and expressed a preference for capitalizing with cash rather than debt, although they would consider debt for excellent opportunities [34] Other Important Information - The company declared a cash dividend of $2.75 per share, payable on September 15, with year-to-date dividends totaling $5.50 per share [21] - The company joined the Russell 1000 Index, marking a significant milestone [22] Q&A Session Summary Question: Capital allocation approach and attractive opportunities - Management stated they are always looking for deals but are very selective, benefiting from a strong cash position that allows for optionality in capital allocation [25][26] Question: Maintenance scenario for net wells - Management indicated that approximately seven net wells would be needed to maintain production levels, with a robust inventory supporting this [27][30] Question: Willingness to go into debt for valuable assets - Management expressed a preference for maintaining a low leverage profile but would consider debt for excellent opportunities [34] Question: Changes in activity or new production customers - Management noted that consolidation in the industry has led to new relationships with operators, enhancing their exposure [35] Question: Expectations for activity based on permit scrapes - Management reported robust permitting activity, particularly from major operators, supporting ongoing development [42] Question: Trajectory of capture rates for water businesses - Management highlighted strong capture rates for both source water and produced water, with growth expected to continue [44][45] Question: Appetite to hedge production profile - Management stated they have historically managed the business without hedges, allowing them to fully benefit from favorable commodity prices [46][48]

Land Ownership and Resources - Texas Pacific Land Corporation owns approximately 880,000 acres of land in Texas, primarily concentrated in the Permian Basin[58]. - The Permian Basin remains a key area for the company's revenue generation, with significant fluctuations in revenue due to oil and gas pricing and drilling activity[60]. Financial Performance - Revenues increased by $38.6 million, or 67.5%, to $95.9 million for the three months ended June 30, 2021, compared to $57.3 million for the same period in 2020[80]. - Net income more than doubled to $57.0 million for the three months ended June 30, 2021, compared to $27.6 million for the same period in 2020[80]. - Total consolidated revenues for the six months ended June 30, 2021 increased by $26.2 million, or 17.0%, to $180.1 million compared to $153.9 million for the same period in 2020[97]. - Net income for the six months ended June 30, 2021 increased by $22.1 million, or 26.0%, to $107.1 million compared to $85.0 million for the same period in 2020[97]. Oil and Gas Revenue - Oil and gas royalty revenue was $58.2 million for the three months ended June 30, 2021, compared to $20.5 million for the same period in 2020, reflecting a significant increase[84]. - Total oil and gas royalties increased to $107.737 million for the six months ended June 30, 2021, up from $62.873 million in the same period of 2020, representing a 71.4% increase[102]. - Average realized prices for oil rose to $60.55 per barrel, a 56.4% increase from $38.78 per barrel in the same period of 2020[102]. Water Services and Operations - Water services and operations segment revenues increased by 32.3% to $28.7 million for the three months ended June 30, 2021, compared to $21.7 million for the same period in 2020[89]. - Water sales revenue was $12.5 million for the three months ended June 30, 2021, an increase of 48.2% compared to $8.4 million for the same period in 2020[91]. - Water Services and Operations segment revenues decreased by 10.7% to $55.1 million for the six months ended June 30, 2021, down from $61.6 million in the same period of 2020[105]. Production Volumes - Oil production volumes decreased to 1,328 MBbls for the six months ended June 30, 2021, down from 1,423 MBbls in the same period of 2020[102]. - Natural gas production increased to 5,516 MMcf for the six months ended June 30, 2021, compared to 4,506 MMcf for the same period in 2020[102]. Cash Flow and Investments - Cash flows provided by operating activities decreased to $96.5 million for the six months ended June 30, 2021, down from $104.1 million in the same period of 2020[113]. - Cash flows used in investing activities significantly decreased to $4.5 million for the six months ended June 30, 2021, compared to $25.3 million in the same period of 2020[114]. - The company invested approximately $4.9 million in Texas Pacific Water Resources LLC (TPWR) projects during the six months ended June 30, 2021[66]. Stock and Dividends - The company has approved repurchases of up to $20.0 million of its Common Stock, with $2.5 million repurchased through June 30, 2021[76]. - Total dividends paid during the six months ended June 30, 2021 were $42.7 million, down from $124.1 million in the same period of 2020[115]. Operational Efficiency - The company continues to prioritize cost reduction measures and has invested in electrifying its water sourcing infrastructure to reduce operational costs[69]. - The average monthly horizontal permits in the Permian Basin increased to 665 in June 2021 from 402 in June 2020, reflecting a recovery in drilling activity[73]. - The average monthly horizontal wells drilled in the Permian Basin rose to 386 in June 2021 from 171 in June 2020, indicating increased drilling activity[73].

Financial Data and Key Metrics Changes - For Q1 2021, net income was $50.1 million or $6.45 per common share, down from $57.4 million or $7.40 per sub-share certificate in the same quarter of the prior year, a decrease of $7.3 million or $0.95 per share [35] - Total revenue for Q1 2021 was $84.2 million, compared to $96.6 million for the same quarter last year, reflecting a decline [37] - Oil and gas royalty revenue increased by 16.9% to $49.5 million compared to the prior year, driven by an $8.8 million increase in gas royalty revenue due to a 121% increase in average realized price [37][38] Business Line Data and Key Metrics Changes - Oil and gas royalties accounted for 59% of revenues in Q1 2021, with an average royalty per acre of 4.4% [10] - SLEM (surface leases, easements, and material sales) accounted for 10% of revenues in Q1 2021, with renewable energy revenue increasing by $2 million from Q4 2020 due to higher pricing [18] - Water solutions business represented 31% of first-quarter revenues, with contracts structured to capture a large market share in Permian water solutions [19][21] Market Data and Key Metrics Changes - As of March 31, 2021, 17% of all Permian rigs were located on TPL drilling spacing units, up from 11% as of December 31 [12] - TPL DSUs accounted for 18% of total spuds across the Permian during Q1, with 14% of all permits approved by the Texas Railroad Commission intersecting TPL DSUs [13] Company Strategy and Development Direction - The company aims to increase efficiencies in existing business lines and grow market share, with potential bolt-on acquisitions aligned with core revenue streams [32] - The reorganization from a trust to a corporation enhances corporate governance and aligns management, Board, and shareholder interests [31] Management's Comments on Operating Environment and Future Outlook - The oil and gas markets have normalized post-COVID-19, with Q1 2021 oil prices returning to $60 per barrel, positioning the company to capitalize on the recovery [24][26] - The impact of the February winter storm resulted in an estimated five to six days of production loss, approximately 6% of the quarter [28] Other Important Information - The company declared a cash dividend of $2.75 per common share for Q1, payable on June 15 [45] - A stock repurchase program was approved to buy up to $20 million of outstanding stock through December 31, 2021 [46] Q&A Session Summary Question: Return of capital strategy and balance between stock repurchases and dividends - Management emphasized a consistent increase in dividends over the past 17 years and a focus on making the best capital allocation decisions for shareholders [54] Question: Appetite for acquisitions and parameters for assessing opportunities - The company is focused on evaluating assets across all revenue streams and remains opportunistic without needing to chase acquisitions for growth [55] Question: Production visibility and impact of permits on rig activity - Current DUC inventory and permit count provide good visibility for continued production pace through the end of the year [56] Question: Production split by product and winter storm impact on royalty production - Oil production was approximately 43% to 44% of total production, with a five to seven-day downtime expected due to the winter storm [57][58] Question: Performance of different portfolio pieces in 2020 - The produced water royalty side of the business saw a 30% increase, serving as a hedge for other businesses that did not perform as well [61] Question: ESG considerations and opportunities - The company views ESG as a significant opportunity, particularly in reducing flaring and enhancing relationships with operators [63]