TEXAS PACIFIC LAND TRUST (NYSE:TPL) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.
Entry into a Material Definitive Agreement.
On November 21, 2018, Texas Pacific Land Trust (the “Trust”) entered into a Purchase and Sale Agreement (the “Sale Agreement”), to which the Trust agreed to sell approximately 14,000 surface acres of land in Loving and Reeves Counties, Texas for an aggregate purchase price of $100,000,000 (the “Sale”) as may be adjusted based on the terms and conditions of the agreement. The Sale excludes any mineral interest in the lands to be conveyed.
The Sale is subject to a number of closing conditions, including the buyer’s due diligence investigation and option to reduce the acreage to be conveyed by as much as 1,920 acres with a corresponding reduction of the purchase price. The Sale Agreement contains standard representations and warranties related to each party, and may be terminated prior to the closing under certain circumstances. The Trust anticipates that the closing of the Sale will occur during the first quarter of 2019.
The Trust intends to use proceeds of the Sale to acquire like kind properties.
The foregoing description of the Sale Agreement is qualified in its entirety by reference to such agreement, which will be filed in accordance with SEC regulations.
About TEXAS PACIFIC LAND TRUST (NYSE:TPL)
Texas Pacific Land Trust (the Trust) is engaged in managing land, including royalty interests, for the benefit of its owners. The Trust operates through managing the land segment, including sales and leases of such land, and the retention of oil and gas royalties. It holds title to tracts of land in various West Texas counties. The Trust’s income is derived primarily from land sales, oil and gas royalties, easements, grazing and sundry leases, interest on notes receivable and interest on investments. It is a passive seller of land and do not actively solicit sales of land. The Trust owns the surface estate in approximately 888,324 acres of land, consisting of various separate tracts, located in over 18 counties in the western part of Texas. It also owns a 1/128 nonparticipating perpetual oil and gas royalty interest under approximately 85,414 acres of land and a 1/16 nonparticipating perpetual oil and gas royalty interest under over 373,647 acres of land in the western part of Texas.