Texas Pacific Land Corp

Previous wording

Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as “TPL”, the “Company”, “our”, “we” or “us”) is a Delaware corporation and one of the largest landowners in the State of Texas with approximately 873,000 surface acres of land, principally concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and gas royalty interest (“NPRI”) under approximately 85,000 acres of land, a 1/16th NPRI under approximately 371,000 acres of land, and approximately 16,000 additional net royalty acres (normalized to 1/8th) (“NRA”), for a collective total of approximately 207,000 NRA, principally concentrated in the Permian Basin.

Current wording

Texas Pacific Land Corporation (which, together with its subsidiaries as the context requires, may be referred to as “TPL”, the “Company”, “our”, “we” or “us”) is a Delaware corporation and one of the largest landowners in the State of Texas with approximately 874,000 surface acres of land, principally concentrated in the Permian Basin. Additionally, we own a 1/128th nonparticipating perpetual oil and gas royalty interest (“NPRI”) under approximately 85,000 acres of land, a 1/16th NPRI under approximately 371,000 acres of land, and approximately 16,000 additional net royalty acres (normalized to 1/8th) (“NRA”), for a collective total of approximately 207,000 NRA, principally concentrated in the Permian Basin.

Previous wording

Average WTI oil prices for the three months ended March 31, 2025 were down approximately 7% 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. In addition, uncertainty around tariffs implemented by and towards the United States has created incremental global economic headwinds, which has, in part, contributed to relatively weaker oil prices in 2025 to-date. Average Henry Hub natural gas prices during 2025 have increased approximately 93% compared to average prior year natural gas prices. Global and domestic natural gas markets have benefited from improved supply-demand balances, including tailwinds from expanded liquefied natural gas capacity and improved industrial and power demand, among other factors. Since mid-2022, the Waha Hub located in Pecos County, Texas has at times experienced significant negative price differentials relative to Henry Hub, located in Erath, Louisiana, due in part to growing local Permian natural gas production and limited natural gas pipeline takeaway capacity. Midstream infrastructure is currently being developed by operators to provide additional takeaway capacity, though the impact on future basis differentials will be dependent on future natural gas production and other factors. Changes in global and domestic macro-economic conditions could result in additional shifts in oil and gas supply and demand in future periods. Although our revenues are directly and indirectly impacted by changes in oil and natural gas prices, we believe our royalty interests (which require no capital expenditures or operating expense burden from us for well development), strong balance sheet, and liquidity position will help us navigate through potential commodity price volatility.

Current wording

Average WTI oil prices for the six months ended June 30, 2025 were down approximately 15% 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. In addition, ambiguity around tariffs implemented by and towards the United States has created incremental global economic uncertainty, which has, in part, contributed to relatively weaker oil prices in 2025 to-date. Average Henry Hub natural gas prices during 2025 have increased approximately 74% compared to average prior year natural gas prices. Global and domestic natural gas markets have benefited from improved supply-demand balances, including tailwinds from expanded liquefied natural gas capacity and improved industrial and power demand, among other factors. Since mid-2022, the Waha Hub located in Pecos County, Texas has at times experienced significant negative price differentials relative to Henry Hub, located in Erath, Louisiana, due in part to growing local Permian natural gas production and limited natural gas pipeline takeaway capacity. Midstream infrastructure is currently being developed by operators to provide additional takeaway capacity, though the impact on future basis differentials will be dependent on future natural gas production and other factors. Changes in global and domestic macro-economic conditions could result in additional shifts in oil and gas supply and demand in future periods. Although our revenues are directly and indirectly impacted by changes in oil and natural gas prices, we believe our royalty interests (which require no capital expenditures or operating expense burden from us for well development), strong balance sheet, and liquidity position will help us navigate through potential commodity price volatility.

Previous wording

Due to our ownership concentration in the Permian Basin, our revenues are directly impacted by oil and gas pricing and drilling activity in the Permian Basin. Below are metrics for the three months ended March 31, 2025 and 2024:

Current wording

Due to our ownership concentration in the Permian Basin, our revenues are directly impacted by oil and gas pricing and drilling activity in the Permian Basin. Below are metrics for the three and six months ended June 30, 2025 and 2024:

Previous wording

The metrics above show selected domestic benchmark oil and natural gas prices and approximate activity levels in the Permian Basin for the three months ended March 31, 2025 and 2024. While average oil prices for the three months ended March 31, 2025 decreased compared to the same period in 2024, average Henry Hub and Waha natural gas prices for the three months ended March 31, 2025 increased compared to the same period in 2024. E&P companies broadly have continued to deploy capital at a measured pace as drilling and development activities across the Permian Basin have remained strong overall. As we are a significant landowner in the Permian Basin and not an oil and gas producer, our revenue is affected by the development decisions made by companies that operate in the areas where we own royalty interests and land. Accordingly, these decisions made by others affect, both directly and indirectly, our oil and gas royalties, produced water royalties, water sales, and other surface-related income.

Current wording

The metrics above show selected domestic benchmark oil and natural gas prices and approximate activity levels in the Permian Basin for the three and six months ended June 30, 2025 and 2024. While average oil prices for the six months ended June 30, 2025 decreased compared to the same period in 2024, average Henry Hub and Waha natural gas prices for the six months ended June 30, 2025 increased compared to the same period in 2024. E&P companies broadly have continued to deploy capital at a measured pace as drilling and development activities across the Permian Basin have remained strong overall. As we are a significant landowner in the Permian Basin and not an oil and gas producer, our revenue is affected by the development decisions made by companies that operate in the areas where we own royalty interests and land. Accordingly, these decisions made by others affect, both directly and indirectly, our oil and gas royalties, produced water royalties, water sales, and other surface-related income.

Previous wording

As we evaluate our current capital structure, capital allocation priorities, business fundamentals, and investment opportunities, we have set a target to maintain a cash and cash equivalents balance of approximately $700 million. Above this target, we will seek to deploy the majority of our free cash flow towards returning capital to our stockholders in the form of special dividends and share repurchases. As of March 31, 2025, we had cash and cash equivalents of $460.4 million that we expect to utilize, along with cash flow from operations, to provide capital to support our business, to pay regular dividends subject to the discretion of our board of directors (the “Board”), to repurchase shares of our common stock, par value $0.01 per share (the “Common Stock”), subject to market conditions, for potential acquisitions and for general corporate purposes. We believe that cash from operations, together with our cash and cash equivalents balances, will be sufficient to meet ongoing capital expenditures, working capital requirements and other cash needs for at least the next 12 months.

Current wording

As we evaluate our current capital structure, capital allocation priorities, business fundamentals, and investment opportunities, we have set a target cash and cash equivalents balance of approximately $700 million. Above this target, we will seek to deploy the majority of our free cash flow towards returning capital to our stockholders in the form of special dividends and share repurchases. As of June 30, 2025, we had cash and cash equivalents of $543.9 million that we expect to utilize, along with cash flow from operations, to provide capital to support our business, to pay regular dividends subject to the discretion of our board of directors (the “Board”), to, subject to market conditions, repurchase shares of our common stock, par value $0.01 per share (the “Common Stock”), for potential acquisitions and for general corporate purposes. We believe that cash from operations, together with our cash and cash equivalents balances, will be sufficient to meet ongoing capital expenditures, working capital requirements and other cash needs for at least the next 12 months.

Previous wording

During the three months ended March 31, 2025, we paid $37.4 million in dividends to our stockholders. There were no repurchases of shares of our Common Stock during three months ended March 31, 2025.

Current wording

During the six months ended June 30, 2025, we paid $74.2 million in dividends to our stockholders. There were no repurchases of shares of our Common Stock during six months ended June 30, 2025.

Previous wording

In 2024, we announced our progress towards developing a patented 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. We have begun construction of our facility which will have an initial capacity of 10,000 barrels of water per day, with expected construction completion later in 2025. Cumulatively through March 31, 2025, we have spent $12.7 million ($0.8 million during the three months ended March 31, 2025) on this new energy-efficient desalination and treatment process and equipment, of which $8.0 million has been capitalized as of March 31, 2025.

Current wording

In 2024, we announced our progress towards developing a patented, 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. With the Permian generating over 20 million barrels of produced water per day, this technology provides an attractive and critical alternative to subsurface injection. We have begun construction of our facility, which will have an initial capacity of 10,000 barrels of water per day, with expected construction completion later in 2025. Cumulatively through June 30, 2025, we have spent $15.7 million ($3.8 million during the six months ended June 30, 2025) on this new energy-efficient desalination and treatment process and equipment, of which $10.2 million has been capitalized as of June 30, 2025.

Previous wording

Additionally, during the three months ended March 31, 2025, we invested approximately $9.9 million to maintain and/or enhance our water sourcing assets.

Current wording

Additionally, during the six months ended June 30, 2025, we invested approximately $11.3 million to maintain and/or enhance our water sourcing assets.

Previous wording

For the three months ended March 31, 2025 and 2024, net cash provided by operating activities was $156.7 million and $147.2 million, respectively. Our cash flow provided by operating activities is primarily from oil, gas and produced water royalties, water and land sales, easements, and other surface-related income. Cash flows used in operations generally consist of operating expenses associated with our revenue streams, general and administrative expenses and income taxes.

Current wording

For the six months ended June 30, 2025 and 2024, cash provided by operating activities was $277.6 million and $245.5 million, respectively. Our cash flow provided by operating activities is primarily from oil, gas and produced water royalties, water and land sales, easements, and other surface-related income. Cash flows used in operations generally consist of operating expenses associated with our revenue streams, general and administrative expenses and income taxes.

Previous wording

The increase in cash flows provided by operating activities for the three months ended March 31, 2025 compared to the same period of 2024 was primarily driven by an increase in operating income and changes in working capital requirements during 2025 as compared to 2024.

Current wording

The increase in cash flows provided by operating activities for the six months ended June 30, 2025 compared to the same period of 2024 was primarily driven by an increase in operating income and changes in working capital requirements during 2025 as compared to 2024.

Previous wording

For the three months ended March 31, 2025 and 2024, net cash used in investing activities was $12.5 million and $2.2 million, respectively. Our cash flows used in investing activities are primarily related to acquisitions and capital expenditures related to our water services and operations segment. Our acquisitions may include land, royalty interests and other similar tangible and intangible assets.

Current wording

For the six months ended June 30, 2025 and 2024, cash used in investing activities was $16.5 million and $9.6 million, respectively. Our cash flows used in investing activities are primarily related to acquisitions and capital expenditures related to our Water Services and Operations segment. Our acquisitions may include land, royalty interests and other similar tangible and intangible assets.

Previous wording

For the three months ended March 31, 2025 and 2024, net cash used in financing activities was $51.8 million and $38.5 million, respectively. Our cash flows used in financing activities primarily consist of activities that return capital to our stockholders, such as payments of dividends and repurchases of our Common Stock.

Current wording

For the six months ended June 30, 2025 and 2024, cash used in financing activities was $88.6 million and $71.7 million, respectively. Our cash flows used in financing activities primarily consist of activities that return capital to our stockholders, such as payments of dividends and repurchases of our Common Stock.

Previous wording

During the three months ended March 31, 2025 and 2024, we paid total dividends of $37.4 million and $26.9 million, respectively. During the three months ended March 31, 2025, employees surrendered $14.3 million in shares to the Company to settle tax withholdings related to stock vesting. We had no repurchases of our Common Stock during the three months ended March 31, 2025. During the three months ended March 31, 2024, we repurchased $10.3 million shares of our Common Stock (including share repurchases not settled at the end of the period).

Current wording

During the six months ended June 30, 2025 and 2024, we paid total dividends of $74.2 million and $53.8 million, respectively. During the six months ended June 30, 2025, employees surrendered $14.3 million in shares to the Company to settle tax withholdings related to stock vesting. We had no repurchases of our Common Stock during the six months ended June 30, 2025. During the six months ended June 30, 2024, we repurchased $16.6 million shares of our Common Stock (including share repurchases not settled at the end of the period).

Previous wording

The following table shows our consolidated results of operations and our results of operations by reportable segment for Land and Resource Management (“LRM”) and Water Service and Operations (“WSO”) for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

The following tables show our consolidated results of operations and our results of operations by reportable segment for Land and Resource Management (“LRM”) and Water Service and Operations (“WSO”) for the three and six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

Total revenues increased $21.8 million to $196.0 million for the three months ended March 31, 2025 compared to $174.1 million for the three months ended March 31, 2024. Total operating expenses increased $7.8 million for the three months ended March 31, 2025 compared to $38.1 million for the three months ended March 31, 2024. Net income was $120.7 million for the three months ended March 31, 2025 compared to $114.4 million for the same period of 2024. Individual revenue and expense line items are discussed below under “Segment Results of Operations.”

Current wording

Total revenues were $187.5 million for the three months ended June 30, 2025 compared to $172.3 million for the three months ended June 30, 2024. Total operating expenses were $43.8 million for the three months ended June 30, 2025 compared to $39.1 million for the three months ended June 30, 2024. Net income was $116.1 million for the three months ended June 30, 2025 compared to $114.6 million for the same period of 2024. Individual revenue and expense line items are discussed below under “Segment Results of Operations.”

Previous wording

We operate our business in two reportable segments: Land and Resource Management and Water Services and Operations. We eliminate any inter-segment revenues and expenses upon consolidation.

Current wording

We operate our business in two reportable segments: Land and Resource Management (“LRM”) and Water Services and Operations (“WSO”). We eliminate any inter-segment revenues and expenses upon consolidation.

Previous wording

Oil and gas royalties. Oil and gas royalty revenue was $111.2 million for the three months ended March 31, 2025 compared to $92.1 million for the three months ended March 31, 2024, an increase of $19.1 million. Our share of production increased to 31.1 thousand barrels of oil equivalent (“Boe”) per day for the three months ended March 31, 2025 compared to 24.8 thousand Boe per day for the same period of 2024. The average realized price decreased 2.6% to $41.58 per Boe for the three months ended March 31, 2025 from $42.71 per Boe for the three months ended March 31, 2024.

Current wording

Oil and gas royalties. Oil and gas royalty revenue was $95.0 million for the three months ended June 30, 2025 compared to $89.8 million for the three months ended June 30, 2024. Our share of production increased to 33.2 thousand barrels of oil equivalent (“Boe”) per day for the three months ended June 30, 2025 compared to 24.9 thousand Boe per day for the same period of 2024. The average realized price decreased 20.5% to $32.94 per Boe for the three months ended June 30, 2025 from $41.44 per Boe for the three months ended June 30, 2024.

Previous wording

Easements and other surface-related income. Easements and other surface-related income was $15.3 million for the three months ended March 31, 2025, a decrease of $2.8 million compared to $18.1 million for the three months ended March 31, 2024. Easements and other surface-related income includes revenue related to the use and crossing of our land for oil and gas exploration and production, renewable energy, and agricultural operations. The decrease in easements and other surface-related income was principally related to a decrease of $5.1 million in pipeline easements, partially offset by increases in utility and wellbore easements and surface damages revenue for the three months ended March 31, 2025 compared to the same period of 2024. The amount of income derived from pipeline easements is a function of the term of the easement, the size of the easement, and the number of easements entered into for any given period. Easements and other surface-related income is dependent on development decisions made by companies that operate in the areas where we own land and is, therefore, unpredictable and may vary significantly from period to period. See “Market Conditions” and “Permian Basin Activity” above for additional discussion of development activity in the Permian Basin during the three months ended March 31, 2025.

Current wording

Easements and other surface-related income. Easements and other surface-related income was $33.5 million for the three months ended June 30, 2025, an increase of $19.3 million compared to $14.2 million for the three months ended June 30, 2024. Easements and other surface-related income includes revenue related to the use and crossing of our land for oil and gas E&P, renewable energy, and agricultural operations. The increase in easements and other surface-related income was principally related to increases of $15.7 million in pipeline easements, $1.9 million in wellbore easements and $1.1 million in commercial leases for the three months ended June 30, 2025 compared to the same period of 2024. The amount of income derived from pipeline easements is a function of the term of the easement, the size of the easement, and the number of easements entered into for any given period. Easements and other surface-related income is dependent on development decisions made by companies that operate in the areas where we own land and is, therefore, unpredictable and may vary significantly from period to period. See “Market Conditions” and “Permian Basin Activity” above for additional discussion of development activity in the Permian Basin during the three months ended June 30, 2025.

Previous wording

Depreciation, depletion and amortization. Depreciation, depletion and amortization was $7.7 million for the three months ended March 31, 2025 compared to $0.7 million for the comparable period of 2024. The increase was principally due to depletion expense associated with royalty interests acquired during the second half of 2024.

Current wording

Depreciation, depletion and amortization. Depreciation, depletion and amortization was $9.1 million for the three months ended June 30, 2025 compared to $0.8 million for the comparable period of 2024. The increase was principally due to depletion expense associated with royalty interests acquired during the second half of 2024.

Previous wording

Water sales. Water sales revenue increased $1.7 million to $38.8 million for the three months ended March 31, 2025, compared to the same period of 2024. The growth in water sales was principally due to an increase of 14.0% in water sales volumes for the three months ended March 31, 2025, compared to the same period of 2024.

Current wording

Water sales. Water sales revenue decreased $15.1 million to $25.6 million for the three months ended June 30, 2025, compared to $40.7 million for the same period of 2024. The decrease in water sales was principally due to a decrease of 39.7% in water sales volumes for the three months ended June 30, 2025, compared to the same period of 2024. Water sales volumes are dependent upon customer demand in the areas in which we provide water to customers and may fluctuate from period to period.

Previous wording

Produced water royalties. Produced water royalties are received from the transfer or disposal of produced water on our land. Produced water royalties are contractual and not paid as a matter of right. We do not operate any saltwater disposal wells. Produced water royalties were $27.7 million for the three months ended March 31, 2025 compared to $23.0 million for the same period in 2024. This increase was principally due to increased produced water volumes for the three months ended March 31, 2025 compared to the same period of 2024.

Current wording

Produced water royalties. Produced water royalties are received from the transfer or disposal of produced water on our land and are contractual and not paid as a matter of right. Produced water royalties are also fee based and not directly impacted by lower commodity prices. However, indirectly, volumes may vary from period to period depending upon development activity levels and operator decisions involving recycling versus disposal of produced water. We do not operate any saltwater disposal wells. Produced water royalties increased to $30.7 million for the three months ended June 30, 2025 compared to $25.3 million for the same period in 2024. This increase was principally due to increased produced water volumes for the three months ended June 30, 2025 compared to the same period of 2024.

Previous wording

Water service-related expenses. Water service-related expenses increased $0.9 million to $11.1 million for the three months ended March 31, 2025 compared to the same period of 2024. Certain types of water-related expenses, including, but not limited to, treatment, transfer, water purchases, repairs and maintenance, equipment rental, and fuel costs, vary from period to period as our customers’ needs and requirements change. Right of way and other expenses also vary from period to period depending upon location of customer delivery. The increase in water service-related expenses for the three months ended March 31, 2025 compared to the same period of 2024 was principally related to a 14.0% increase in water sales volumes.

Current wording

Water service-related expenses. Water service-related expenses decreased $6.4 million to $8.5 million for the three months ended June 30, 2025 compared to the same period of 2024. Certain types of water-related expenses, including, but not limited to, treatment, transfer, water purchases, repairs and maintenance, equipment rental, and fuel costs, vary from period to period as our customers’ needs and requirements change. Right of way and other expenses also vary from period to period depending upon location of customer delivery. The decrease in water service-related expenses for the three months ended June 30, 2025 compared to the same period of 2024 was principally related to a 39.7% decrease in water sales volumes.

Previous wording

Depreciation, depletion and amortization. Depreciation, depletion and amortization was $4.3 million for the three months ended March 31, 2025 compared to $3.1 million for the comparable period of 2024. The increase was principally due to depreciation expense related to new water service-related assets placed in service.

Current wording

Depreciation, depletion and amortization. Depreciation, depletion and amortization was $4.6 million for the three months ended June 30, 2025 compared to $3.3 million for the comparable period of 2024. The increase was principally due to depreciation expense related to new water service-related assets placed in service.

Previous wording

Salaries and related employee expenses. Salaries and related employee expenses, which include not only salaries, equity and non-equity incentive compensation, but also employee benefits and contract labor expense, were $7.2 million for the three months ended March 31, 2025 compared to $6.0 million for the same period of 2024. The increase in salaries and related employee expenses is principally related to market compensation adjustments that take effect annually at the start of the year.

Current wording

Salaries and related employee expenses. Salaries and related employee expenses, which include not only salaries, equity and non-equity incentive compensation, but also employee benefits and contract labor expense, were $14.4 million for the six months ended June 30, 2025 compared to $12.9 million for the same period of 2024. The increase in salaries and related employee expenses was principally related to market compensation adjustments that take effect annually at the start of a given year.

Previous wording

General and administrative expenses. General and administrative expenses were $3.3 million for the three months ended March 31, 2025 compared to $6.7 million for the comparable period of 2024. The decrease is primarily due to a decrease in legal expenses of $3.1 million over the same time period.

Current wording

General and administrative expenses. General and administrative expenses were $7.0 million for the six months ended June 30, 2025 compared to $10.7 million for the comparable period of 2024. The decrease was primarily due to a decrease in legal expenses of $3.5 million over the same time period.

Previous wording

Salaries and related employee expenses. Salaries and related employee expenses, which include not only salaries, equity and non-equity incentive compensation, but also employee benefits and contract labor expense, were $7.4 million for the three months ended March 31, 2025 compared to $6.5 million for the same period of 2024. The increase in salaries and related employee expenses is principally related to market compensation adjustments that take effect annually at the start of the year.

Current wording

Salaries and related employee expenses. Salaries and related employee expenses, which include not only salaries, equity and non-equity incentive compensation, but also employee benefits and contract labor expense, were $14.2 million for the six months ended June 30, 2025 compared to $12.3 million for the same period of 2024. The increase in salaries and related employee expenses is principally related to market compensation adjustments that take effect annually at the start of the year.

Previous wording

EBITDA is a non-GAAP financial measurement of earnings before interest expense, taxes, depreciation, depletion and amortization. The purpose of presenting EBITDA is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation. The purpose of presenting Adjusted EBITDA is to highlight earnings without non-cash activity such as share-based compensation and other non-recurring or unusual items, if applicable. We calculate free cash flow as Adjusted EBITDA less current income tax expense and capital expenditures. The purpose of presenting free cash flow is to provide an additional measure of operating performance. We have presented EBITDA, Adjusted EBITDA and free cash flow because we believe that these metrics are useful supplements to net income in analyzing the Company's operating performance.

Current wording

EBITDA is a non-GAAP financial measurement of earnings before interest expense, taxes, depreciation, depletion and amortization. The purpose of presenting EBITDA is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis. We calculate Adjusted EBITDA as EBITDA plus employee share-based compensation. The purpose of presenting Adjusted EBITDA is to highlight earnings without non-cash activity such as share-based compensation and other non-recurring or unusual items, if applicable. We calculate free cash flow as Adjusted EBITDA less current income tax expense and capital expenditures. The purpose of presenting free cash flow is to provide an additional measure of operating performance. We have presented EBITDA, Adjusted EBITDA and free cash flow because we believe that these metrics are useful supplements to net income in analyzing the Company's operating performance. Our definitions of EBITDA, Adjusted EBITDA and free cash flow may differ from computations of similarly titled measures of other companies.

Previous wording

The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and free cash flow for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and free cash flow for the three and six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

For further information regarding recently issued accounting pronouncements, see Note 2, “Summary of Significant Accounting Policies” in the notes to the condensed consolidated financial statements included in Item 1. “Financial Statements” in this Quarterly Report.

Current wording

For further information regarding recently issued accounting pronouncements, see Note 2, “Summary of Significant Accounting Policies” in the notes to the condensed consolidated financial statements included in Part I, Item 1. “Financial Statements” in this Quarterly Report.