11 thoughts on “Volume

  1. another huge vol day. What is going on?

    On Wed, Apr 8, 2020 at 9:18 AM The Texas Pacific Land Trust Investor wrote:

    > tpltblogger posted: “182.6k shares traded yesterday. 55k already this > moring (as of 10:13am EST). Quite a step up in early March. Source: > Bloomberg” >

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  2. I am honestly curious about what the Saudi are doing. Today they picked up major position in European oil majors. I dont know, can they do that here with TPL? Is there some anti trust about influencing price on oil and then buying depressed assets that are dependent on said price? Idle speculation on my part. Honestly, lately nothing surprises me any more.

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  3. While I don’t have any concrete ideas on what’s behind this transactional motion, we’d know if one of the “relevant” insiders was involved here. And @Smyth, I doubt Aramco is involved. It’s one thing for them to pick up large E&P’s and another for them to get exposure to a high quality US O&G asset via a land trust as such. I think the headlines about European investment is strategic operational positioning on their part more than anything else.

    What I have been wondering, however, is what’s behind this upward price action over the last several weeks. Like anyone else, I want to see appreciation in TPL, but I thought given all the demand drawdown from the global impact of Covid-19 & the current oversupply concerns from OPEC+, it stood to reason that a larger forward discounting was warranted. In other words, I could somewhat understand & comprehend the $300-400 trading range, but this push to $500 seems a little bit early since we don’t yet know the real impact of production cuts in the region. But I don’t pretend to understand at all what’s going on in the markets these days.

    With that said, I wouldn’t be surprised if repurchases had now resumed (in earnest). I wonder how much is possible though in this environment, since roughly 41% of cash (12/31/19 balance sheet indicates ~ $303mm) was spent on the recent dividend ($16/sh @ ~ 7.75mm shares as of 1/31/20). It would be a good exercise to estimate the production cuts (CVX, OXY, XOM, RDS, WPX, EOG, et al) impact on the P&L via their visible TPL exposure AND add-in estimated fixed operating costs of TPW to get a handle on forward income. Then a better guess as to 2020 repurchases could made.

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  4. This share price rise on high volume over the past couple of weeks is, quite frankly, bewildering. I keep expecting it to start dropping because of the terrible oil price, but up it goes again. I doubt TPL is buying back shares this aggressively (if at all), and HK is not showing any activity.


  5. Unnamed buyer – TPL?

    MIDLAND, Texas–(BUSINESS WIRE)– Ring Energy, Inc. (NYSEAM: REI) (“Company”)(“Ring”) announced today that it has entered into a Purchase and Sale Agreement (“PSA”) to sell its Delaware Basin (“Delaware”) asset located in Culberson and Reeves Counties, Texas (“Property”).

    The Property consists of approximately 20,000 net acres. The current net daily production from the Property is approximately 575 BOP/D (Barrels of Oil Per Day) and 2,000 MCF/D (Thousand Cubic Feet of Natural Gas Per Day), equaling approximately 908 BOEPD (Barrels of Oil Equivalent Per Day). Year-end 2019 PDP (Proved Developed Producing) reserve estimates, as determined by outside independent engineering firm Cawley, Gillespie and Associates, are an estimated 3.48 million barrels of oil and 10,055 MMCF (Million Cubic Feet) of natural gas, equaling approximately 5,156 million BOE with a PV-10 value of approximately $43 million. The report was completed using average pricing of $52.41 per barrel of oil and $1.47 per MCF of gas.

    The sales price is $31.5 million. The Company has received a $500,000 non-refundable deposit and expects to close the transaction in approximately 60 days.

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