Shrouded in Mystery

What do we know about TPL’s long term corporate strategy and capital allocation/return plans?

We’ve heard, via a research report, that management would like a stock authorization to do M&A. We’ve also seen the company hire individuals with M&A experience. What’s the direction there?

There are no shareholder proposals that pertain to acquisition strategy or capital allocation. Why not?

Do investors need better/more representation on the board?

With the three investor representatives bound by a stockholders agreement, are investors marginalized by a simple majority board vote?

Why are we still in the dark?

12 thoughts on “Shrouded in Mystery

  1. Definitely frustrating! We have come this far but still have nothing to show for it! I voted all my shares against every proposal and director. Is there any way you can do a poll on here for how many shares the readership owns/represents (which I assume leans heavily anti management) . Personally I have over 2,000 shares and feel very strongly that we need a change of direction.

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  2. I see no changes in leadership or results. We still don’t know what is the strategic direction. The have hired a lot of people and where are the results? Until the unqualified man at the top is removed it is more of the same.

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  3. We’ve hired Merger and Acquisition people, but is that for us to buy a smaller competitor or is it for a merger with a Major? I have always thought that a buyout was more likely than TPL expanding their footprint. Don’t know if M&A people deal in being bought out? A buyout would be a big payday for management whereas purchasing a rival would bring no immediate benefit to management.

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    • No, it is for acquisitions by them. If they were looking to be bought out they would contract with a M&A consultant/broker.

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  4. I agree that it is for acquisitions. Management has to justify their compensation packages. They said they want to be the ETF of the Permian Basin.

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  5. Three investor representatives??? Who is representing investors besides Eric Oliver of SoftVest LP and Murray Stahl of Horizon Kinetics?

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  6. I don’t understand the endgame for Stahl and Oliver. I thought they were at least somewhat on the same page as most small investors that the old guard of the Trust were not managing the assets in the best interest of the cert/shareholders. But if those two, and the ~20%ish of outstanding shares they control, are effectively forced to support the board recommendations (which seems tilted to the old guard), its hard to see how they are outsiders.

    But there must be some explanation, as there is no way those two make more money from the bloated compensation of TPL dignitaries than they do from their investment businesses; which seem heavily invested in TPL going up. And clearly MS and Oliver are not fools or stooges. Some part of this picture is distorted.

    I thought the C in C-corp was supposed to stand for Clearer, just seems more Cloudy to me…….

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