6 thoughts on “March 2021 Investor Presentation”

  3. No signs of a bitcoin strategy which is disappointing. With BTC bull Murray Stahl now a full fledge member of the board I was hopeful the topic of bitcoin mining would be on the TPL roadmap.

    There is a mutually beneficial partnership evolving between O&G companies and “clean” BTC miners that use solar or otherwise flared gas to power their mining operations. O&G companies deal with the environmental problem of flaring by monetizing what would be unused energy and gain the benefit of an improved ESG strategy (and sometimes avoid fines or negative press). The miners get very cheap energy and also see improved corporate demand for their BTC for supporting clean mining practices (not to mention expanding profit margins as the price of BTC price discovery reaches new heights). The US BTC sector also wins in this partnership as the increased mining in the US helps bring the global balance in BTC mining into order as China currently mines roughly 70% of the worlds BTC. It’s a practical and strategic plan that’s currently in the early innings in the Midwest.

    In my mind, there is a very obvious partnership to be capitalized on here and Murray Stahl is uniquely placed to bring these two worlds together for TPL. Murray has a platform and credibility in both spaces. As an example… the first step could be to partner with a company like Great American Mining and one of our existing O&G partners to provide proof of concept on the technology in the Permian. Assuming successful, the partnership could be expanded on across all applicable TPL lands. Applying our current revenue model we’d see expanded easement payments for land usage, royalty payments on the gas utilized, and we could apply royalties on BTC mined also. It’s simply picking a strategic partnership in GAM and applying our TPL model to a new technology. Future developments could include investment in GAM, or inclusion of the mined BTC on our balance sheet. Being a pioneer in this space would bring a great deal of positive visibility for TPL, leadership in the ESG space (inclusion in ETF’s) and new strategic revenues streams at very low cost.

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    • My guess is that the e&ps that are on the mineral rights have discretion on what to do w the gas destined for flare. TPL could sell picks and shovels and provide land but I don’t think they can make the go no go decision on BTC mining. Again, just a guess.

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      • That’s a reasonable point, and not suggesting TPL could force them to utilize the partnership so much as they could broker an alternative and potentially more profitable solution to deal with the unused gas onsite.

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