While I reserve the right to change my opinion if new information arises, my gut instinct is that I’m on board with the Eric Oliver as trustee. I’m writing to flesh out my thoughts. I don’t pretend to have more information than anyone else; in fact, I’m likely behind the curve on crucial particulars as they relate to 1) the exact state and value of TPL’s mineral rights, 2) the potential of the water business (customer base, breadth of service, etc) and 3) what the future holds for the Permian. I’m not in the oil industry and I live just about as far away from Texas as a US citizen can. This is me building my mosaic as a qualitative investor.
- HK is on board. Out of any single party involved, HK has the greatest incentive (by virtue of amount held) to see that TPL’s value is maximized.
- Change is hard. Gut instinct and reactions to change can often be very negative. We all know that TPL has had a good thing going for a long time and the operational history (liquidating and concentrating the equity base) of TPL is what attracted many of us to invest.
- Circumstances have changed rapidly. Those that can adapt to new realities usually come out on top. What got you here won’t get you there.
- Eric Oliver, as evidenced by his control of SoftVest, appears to be qualified for the job. Again, HK’s tacit endorsement speaks volumes.
- “Eric serves President of Midland Map Company, LLC a 55-year-old company that tracks lease and ownership changes throughout the Permian Basin of West Texas”.
- SoftVest appears to control $30MM market value of TPL sub-shares
- Allen Tessler and family appear to be an extremely accomplished and competent.
- HK, Oliver, and Tessler all have stakes well in excess of current management.
- I too have significant personal skin and the game and was relieved by reading the filing yesterday. I’d admit to having grown quite worried about agency and succession issues after the resignation of Maurice Meyer.
- I don’t write this to be dismissive of Preston Young who appears to be a very capable individual.
- Nor do I wish to make light of the excellent stewardship of Tyler Glover, Robert Packer, John Norris, and David Packer.
I’m still not 100% (though I’m not sure it matters anyhow). But as you can tell, I’m certainly leaning toward the direction of change.