Musings at $1127*

Management getting paid big $$ but the stock is 36% off last year’s high in a pocket of tremendous strength in the oil market. WTI @ $82.25.

XLE up 0.4% today. TPL down 4%.

Cash the checks and buyback the shares. It’s not hard.

At what point does the board look at changing strategic direction and management? Are the shareholders being served?

This thing sure isn’t trading like an “ETF of the Permian”.

Is this what we are paying for? Full day 1/13: -$96, -7.85%, $1127.90 close.

The General Finally Has Some Shares

After talking a big game about buying shares to align himself with shareholders and ultimately not following through, the General finally got his shares (for free) today. Enjoy!

All of the board got shares today and will no doubt work hard to keep that gravy train rolling.

Next elections are in 9 months.

In case you were worried, McGinnis received shares as well.

Let Them Know

This blog always gets a bit more editorialized when I get fired it up. I try to keep it objective but I’m far from perfect.

After reflecting on the election yesterday, I think our next job as shareholders is to let the board know that we have spoken through our votes.

For #7 to win with such a large percentage of the vote bound by a stockholders agreement is really nothing short of a miracle.

We need to capitalize on that momentum and let the board know that we demand good governance. We demand representation.

Let them know.

Write. Email. Tweet. Call.

Keep doing it all until the change we voted for is manifested.

Votes Are In!

McGinnis – No*

Declassify – Yes

Notwithstanding the terms of the stockholders’ agreement (the “Stockholders’ Agreement”), entered into on June 11, 2020 among Texas Pacific Land Trust (and later assigned to the Company), Horizon Kinetics LLC and Horizon Kinetics Asset Management LLC (together with Horizon Kinetics LLC and its affiliates, “Horizon”), SoftVest Advisors, LLC (“SoftVest Advisors”) and SoftVest, L.P. (together with SoftVest Advisors and its affiliates, “SoftVest”), and Mission Advisors, LP, Horizon and SoftVest did not vote for the re-election of Mr. McGinnis. If Horizon and SoftVest had voted for Mr. McGinnis, he would have received a majority of the votes cast.

Pursuant to the Company’s Amended and Restated Bylaws (the “Bylaws”), Mr. McGinnis is required to promptly tender his resignation to the Board, and the Nominating and Corporate Governance Committee of the Board will make a recommendation to the Board as to whether to accept or reject the tendered resignation. The Board will act on the tendered resignation, taking into account the Nominating and Corporate Governance Committee’s recommendation and the failure of Horizon and Soft Vest to vote for Mr. McGinnis as described in the previous paragraph, and publicly disclose its decision regarding the tendered resignation within ninety days of the date of the certification of the Annual Meeting results.

The nominating committee is chaired by Donald Cook. Donna Epps and Murray Stahl are members.

The most tone deaf thing in the world would be for McGinnis to be not allowed to resign. There appears to be a material chance of that happening given the way this is written.

Our annual meeting of stockholders for 2022 is scheduled to be held on November 16, 2022. Any director nomination or stockholder proposal submitted outside the processes of Rule 14a-8 promulgated under the Securities Exchange Act of 1934, as amended, which a stockholder intends to present at the Company’s 2022 annual meeting of stockholders, will be untimely unless it is received between July 19, 2022 and August 18, 2022 in accordance with our bylaws. Please refer to our bylaws for additional requirements in connection with such submissions.

On “declassify”, my guess is we don’t hear anything else about it until the next meeting unless more external pressure is applied.

New Owners

Shares vest at the end of 2022 and 2023.

Guys, the price will go up if fewer shares exist. You want that now, right?

Also, it’s clear that that votes have been counted. But first things first, of course.