10 thoughts on “Let Them Know”

1. Excellent idea, and I have not been shy about communicating with the board.

   As an idea to make it easier for shareholders reading this blog, could you put the board member email addresses into your post?

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   • I just got letter e-mailed to me as a follow up from my inquiry on the outcome of the proxy vote

     To attendees of TPL 2021 Annual Stockholders Meeting,
     Thank you for attending the 2021 annual meeting of Texas Pacific Land Corporation on December 29,
     2021.
     As you know this was our inaugural annual meeting, which was conducted in a virtual format due to the
     continued challenges of Covid-19. Despite our best intentions, we unfortunately experienced technical
     difficulties during the virtual meeting. In particular, a third-party service provider experienced an
     audio/visual malfunction. We encouraged stockholders to submit comments and questions through the
     on-line portal and worked to resolve these technical issues as quickly as possible, but we regret the
     disruption.
     During the meeting, we also received messages that stockholders were experiencing challenges while
     voting. We took these reports of voting issues seriously, and we paused the meeting to direct our full
     attention towards addressing stockholder voting. The polls were kept open for an extended period to
     ensure that all eligible stockholders were able to vote, and we confirmed that eligible, registered
     stockholders were able to vote via a legal proxy or the online system up until the closing of the polls.
     TPL’s commitment to stockholders
     We remain focused on maximizing stockholder value
     over the long-term. Our track record demonstrates both
     our ability and our dedication towards creating value for
     our stockholders, and we endeavor to sustain the
     momentum and success TPL has achieved. Over the
     last 5 years, TPL’s cumulative total return is 351%,
     which compares favorably to the cumulative total return
     of the S&P Oil and Gas Exploration & Production ETF
     (NYSE: XOP) of -37%. Compared to all the individual
     constituents in the XOP, TPL’s 5-year cumulative total
     return is the highest. We believe this reflects both the
     tremendous quality of TPL’s legacy asset base and our
     deliberate active management strategy and successful,
     sustained execution.
     5-year cumulative total return:
     TPL vs S&P Oil and Gas E&P ETF
     Source: Bloomberg. Total return period of 12/30/16-12/31/21.
     TPL US Equity XOP US Equity
     TPL
     +351%
     XOP
     (37%)
     The change in TPL’s strategy since late-2016 to engage in active management of our assets has been
     instrumental in extracting even greater value from our legacy footprint. TPL’s rapid growth over the last
     few years has been supported by the robust drilling activity in the Permian Basin, as the Permian’s high
     organic shale content, consistent geology, multi-zone potential, favorable oil and gas mix, and vast
     acreage expanse support advantageous fullcycle drilling economics compared to other shale
     basins in North America. Those features make
     TPL’s royalty acreage highly economic, which is
     evident from the growth of our royalty revenues.
     As we discussed during the annual meeting, we
     actively engage customers and assert our
     surface rights to create incremental value across
     multiple business lines. Deploying an active
     management approach has allowed us to
     negotiate and execute produced water fees,
     easement renewal payments and escalators
     features, area-of-mutual interest (AMI) terms,
     and water sales agreements that generally
     exceed what our competitors and neighbors
     receive and what TPL was receiving pre-active
     management.
     In addition to growing our top-line revenues, we also want to maintain our leadership in delivering highmargin cash flows. To drive business growth and enhance governance, we have invested in people and
     technology. While this has driven nominal increases in expenses, it has successfully supported even
     greater increases in revenue, largely from the additional revenue streams discussed above. Compared
     to the individual constituents (over 50 companies) in the XOP, TPL’s third quarter 2021 adjusted EBITDA1
     margins and net income margins were the highest2 at 87% and 68%, respectively. Even having achieved
     these margins, we strive to improve them even more. These efforts include previous and ongoing
     electrification of our water infrastructure, operational and enterprise automation integration, and
     headcount rationalization.
     1 “EBITDA” defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA is a non-GAAP measure. See Appendix for a
     reconciliation of non-GAAP measures to net income. 2 Source: Capital IQ.
     TPL historical revenues by segment
     Source: Company data.
     Note: Excludes land sales deemed significant and sales of oil and
     gas royalty interests.
     $58
     $123
     $193
     $241
     $195 $212
     $8
     $31
     $89
     $127
     $107 $92
     $66
     $155
     $281
     $368
     $303 $304
     2016 2017 2018 2019 2020 YTD
     3Q21
     Represents 9-
     months
     ended 9/30/21
     ($ in millions)
     As we’ve said before, our goal is to create
     stockholder value. To that end, we believe
     generating more free cash flow per share will
     drive greater stockholder value. With
     supportive Permian basin activity and
     commodity price backdrop, we see a
     multitude of attractive opportunities to drive
     free cash flow growth.
     In summary, TPL’s mission is to pursue a
     thoughtful, long-term approach towards
     optimizing and building upon the commercial
     and environmental virtues of our extensive
     lands and resources. In guiding TPL towards
     achieving this mission, we are focused on
     optimizing long-term value creation and
     profitability, fostering responsible
     stewardship of our assets, providing quality customer service, and engaging with and advocating for
     employee and stakeholder interests. We are excited to continue executing on our strategy and will strive
     to deliver exceptional operational and financial results. We look forward to continuing interaction with our
     stockholders and to speaking with you at our 2022 annual meeting, which we are optimistic will be inperson, and at a potential upcoming investor day.
     If you have questions or would like more information about the Company, please contact Investor
     Relations at IR@texaspacific.com
     Sincerely,
     Tyler Glover
     President and Chief Executive Officer

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     • hahahahah……..me too.

       for the record i’d rather have been me too-ed by Harvey Weinstein

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2. For #7 to win with such a large percentage of the vote bound by a stockholders agreement is really nothing short of a miracle. NOT SO……I WILL BE GLAD TO EXPLAIN …BTW I NEED A WAY TO BE ABLE TO PLACE STUFF ON YOUR BLOG

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

   I SEE WHAT WILL HAPPEN PRETTY CLEARLY BASED ON FACTS NEVER MENTIONED ON BLOG.>>>> I CAN EXPLAIN IF I HAD ACCESS AN THIS STUFF WOULD BE WELCOME OR BE GLAD TO TALK WITH YOU ABOUT FOR YOU TO PUT ON THE BLOGG AND PROVIDE AMMO TO OPINE ON

   ISSUES LIKE C MINUS RATING BY ISS SO SHORTLY SHORTLY DECLASSIFICATION PROCESS WILL BEGIN AND OTHER ISSUES

   HOW MAY SHARES DO U KNOW OR IMAGINE ARE REPRESENTED BY YOUR BLOG?

   Lawrence J. Goldstein ljg@smplp.com

   >

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   • You could always type it out in a comment, or on a site like Medium.com and then post the link here.

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   • Based on votes seems fair that this blog/line of thinking represented here is around 800k shares? Plus HK is 1.8m?
     I feel like we did let them know. Let’s watch what they do and evaluate. It’s been less than 10 days since we peppered them mercilessly for two hours in the comments of zoom and questions leading up to then. Shame on them for not hitting all this head on. Still, I don’t think Mgmt is evil, very plausibly incompetent. Pestering them constantly on known issues where it appears we’ve made massive progress is not helpful.
     They are not a complaint department; it’s a business. A damn good one. And collectively if numbers above are right “we” own 15%?
     Murray clearly is on it and high level in agreement. Let’s not undermine him….he’s shrewd, long term focused, smart as hell. Our “faction” should be focused on the what – results. We got good results in this election. We need good operating results. Let’s see what happens.

     Thanks for fang/pxd suggestions.

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3. Sell the stock and buy something else where things are done properly and you don’t need to worry about your investment. How about PXD or FANG for starters?

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   • We aren’t quitters.

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     • gawd damn right. This is ‘our’ asset.

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4. HK’s quarterly update is due this month. Should be an interesting one…not sure how much they will be able to say.. For those of you who haven’t listened to them, they always dedicate a chunk of time to discussing TPL.

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