Trustee Alternate



From time to time the Reporting Persons have engaged with the trustees and other representatives of TPL, investors and other industry participants to discuss various opportunities to maximize the value of TPL for the benefit of holders of Shares. Such discussions have included (1) the conversion of TPL into a Delaware corporation subject to modern governance principles, as permitted by TPL’s declaration of trust, (2) focusing on the establishment of an experienced team around TPL’s new water business, with clearly defined goals and objectives, or otherwise considering the separation or sale of such business to a third party with a retained royalty, and (3) the addition of Mr. Oliver as a trustee of TPL. The Reporting Persons believe that the trustees of TPL should fully explore these options, as well as any other opportunities available to maximize value for holders of Shares. In addition, the Reporting Persons believe that the Trust should be more transparent and frequent on its updates to holders of Securities (e.g. drilling updates, drilled and uncompleted well updates, water production, water injection volumes, and engineering reports).

Eric Oliver

Allan Tessler


7 thoughts on “Trustee Alternate

  1. Wow. This will be very interesting to see how this one shakes out. Looks like we know who Stahl’s first pick would be…. collectively, it looks like this partnership plus Horizon is almost 25% of TPL.

    Liked by 1 person

  2. Wow. This will be very interesting to see how this one shakes out. Looks like we know who Stahl’s first pick would be…. collectively, it looks like this partnership plus Horizon is almost 25% of TPL.

    Liked by 1 person

  3. I’m not liking this. Even if Horizon is involved. They are talking about changing the trust into just another corporation. Once it becomes a corp we lose all the nice simple direction of the original trust. A corporation then becomes all about profit. I prefer the way the trust has been operating ever since its declaration. I am happy with the dividend. I am happy with how the trust buys back subshares. I just know with the trust it has an independence that we will lose with a corporation. I am doubtful after reading the 14A. I respectfully disagree with this.

    Liked by 1 person

    • I think it’s the best way to realize true value. Stahl has owned it since 1985. I think he wants the best structure to realize value. It doesn’t mean there won’t be dividends or buybacks.He has always supported those.He is trying to set the stage for when growth stops and TPL becomes a big yield vehicle. There’s likely to be separation of its divisions.

      Liked by 1 person

  4. I wish that someone at HQ would see what money there is at the Comptrollers office under “unclaimed property”. It is not much, but if they can’t handle small “crumbs”–how do they do with huge amounts?
    Go the Texas Unclaimed Property and fill in our trust. It is not a shame to get on the list–IMHO is a shame to stay on the list regardless of the amount.

    Liked by 1 person

  5. Looks like Horizon Kinetics has concerns with the many recent changes that have occurred. HK and Stahl are long run value investors so I think having them on board is good and could potentially land a director on board. Agree this adds some short run uncertainty, but governance changes are in order. This is 2019, and the trust (until the last two years) has mostly operated the same since 1888 when it began. Updating the corporate charter and having better transparency would help unlock more shareholder value. The stock price of TPL today has these question marks built into it, which detracts from valuation.

    I am surprised its not a HK choice for director given they have indirect/direct control over roughly 18x as many shares as the rest of the consortium.


  6. Even if HK or their pick don’t get included in the governance process, it will at least force TPL to stay on their toes. This was a sleepy concern for decades, but now it’s a different story. To be fair, the move into the water business has proved smart and well-timed. But HK and co. could offer more insight into how to optimize operations. Overall, I think an outside addition from seriously invested parties would be a positive.

    Liked by 1 person

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