Maybe. But everything on my screen is red the last few weeks. Why not add to other positions where the management isn’t playing games with shareholders?
Hard to understand the selling pressure as of late. But it may be the skepticism over the boards desire to use revenue for something other than buybacks and dividends. The revenue for opportunities talks wouldnt be so bad if the board had anybody on it with an acquisition track record. Or if there wasnt the history of cronyism.
In my opinion, the recent weakness is attributable to corporate governance concerns. I voted for the incentive compensation measures–and I’m generally glad that shares were issued to the board and executive management to better align incentives with shareholders.
Neverthless, I consider it cringe-worthy that a share award was made to Dana McGinnis after he received less than 50% of the shareholder vote for re-election. Does this mean that the board refused Mr. Minnis’ resignation? And why wouldn’t TPL issue an 8-K through the SEC for material news if they found grounds to keep him, which is otherwise contradictory to the will of the shareholders?
We still don’t known why Murray Stahl voted against Mr. McGinnis. In my opinion, Stahl would have less justification if the board had thoroughly investigated earlier concerns and convincingly established that McGinnis was, in fact, TPL’s second-largest shareholder in early 2019. Will there be any legal action agains Stahl and Eric Oliver for violating the terms of the shareholder agreement?
And why not immediately adopt Resolution #7 to de-stagger the board, which is again, clearly the will of the shareholders? It does not seem too disruptive to the continuity of board, as the de-staggering of the board will only occur over a two+ year period. Plenty of time to prepare, in my opinion.
Bottom line, this is world-class rock in the best basin in world, where the hydrocarbons will take decades to recove. Corporate governance will be sorted out eventually, hopefully without much additional time and expense. But in the meantime, uncertainty reigns. I’m rehashing a lot that has already been discussed here, but this uncertainty keeps me from buying more right now.
The fundamentals of this stock are quite unique and rock solid – TPL and the entire stock market experiences peaks and valleys for known and unknown reasons. I believe we are in the “storm” prior to the upcoming “calm”.
I hate the clown show that is mngt as much as the next guys (who is paying attention). But it seems to me that the selloff is consistent with a lot of stocks with high pe. Maybe its just stocks that did well last year and may be thought sensitive to interest rate hikes, and .TPL is lumped in. Still, i agree with the general sentiment that mngt justified their compensation based on stock price and so they politically own this.
bigger picture is higher oil prices is only good news for us tho.
Would have never thought the great assets of Texas Pacific Land could be so undervalued with oil trading above 85 $ a barrel. Strange times indeed. The annual meeting next year will be the most interesting yet. Still very optimistic about the long term future of this company.
“The Permian is the biggest moving piece in global oil supply,” says Bill Farren-Price, a director at the research firm Enverus, “and we see it roaring back in 2022.”
‘The importance of the Permian is set to grow. As other basins struggle to keep production flat, or slip into decline, it is likely to be the only US oilfield with rising production.’
‘The data bear this out. Oil is cheaper to produce in the Permian than just about anywhere else in the country, with companies able to profitably drill a new well in the Midland region when oil is at $46 a barrel — roughly half current prices.’
‘“As far as production and activity, the Permian has a great, great future ahead of it,” she adds. “The world — and this country — is going to need the Permian for 50, 60, 70 years.”’
Is Murray unloading his position? I hope not, but it’s the only thing I can think of that makes sense of this nonstop selling despite oil’s all time highs…
Stahl is not unloading his personal position, but it is quite possible that HK fund redemptions are causing them to sell for their funds. Or maybe McGinnis is unloading his “second largest” position out of spite. Or Hodges is fed up with management and unloading. Or Maurice Meyer’s estate is fed up with management and unloading. Any number of possibilities….
The Texas Pacific Land Trust Investor 
sounds like good time to get in..I don’t see Murray selling
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Maybe. But everything on my screen is red the last few weeks. Why not add to other positions where the management isn’t playing games with shareholders?
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And today WTI hit a record high……..all of this and TPL makes a round trip back to $1058.
How can we ever get the BOD to address this?
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Hard to understand the selling pressure as of late. But it may be the skepticism over the boards desire to use revenue for something other than buybacks and dividends. The revenue for opportunities talks wouldnt be so bad if the board had anybody on it with an acquisition track record. Or if there wasnt the history of cronyism.
LikeLiked by 1 person
In my opinion, the recent weakness is attributable to corporate governance concerns. I voted for the incentive compensation measures–and I’m generally glad that shares were issued to the board and executive management to better align incentives with shareholders.
Neverthless, I consider it cringe-worthy that a share award was made to Dana McGinnis after he received less than 50% of the shareholder vote for re-election. Does this mean that the board refused Mr. Minnis’ resignation? And why wouldn’t TPL issue an 8-K through the SEC for material news if they found grounds to keep him, which is otherwise contradictory to the will of the shareholders?
We still don’t known why Murray Stahl voted against Mr. McGinnis. In my opinion, Stahl would have less justification if the board had thoroughly investigated earlier concerns and convincingly established that McGinnis was, in fact, TPL’s second-largest shareholder in early 2019. Will there be any legal action agains Stahl and Eric Oliver for violating the terms of the shareholder agreement?
And why not immediately adopt Resolution #7 to de-stagger the board, which is again, clearly the will of the shareholders? It does not seem too disruptive to the continuity of board, as the de-staggering of the board will only occur over a two+ year period. Plenty of time to prepare, in my opinion.
Bottom line, this is world-class rock in the best basin in world, where the hydrocarbons will take decades to recove. Corporate governance will be sorted out eventually, hopefully without much additional time and expense. But in the meantime, uncertainty reigns. I’m rehashing a lot that has already been discussed here, but this uncertainty keeps me from buying more right now.
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Love this comment
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Agree. Very well said.
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would have been nice if management & board members had put some of their own $$ !!
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The fundamentals of this stock are quite unique and rock solid – TPL and the entire stock market experiences peaks and valleys for known and unknown reasons. I believe we are in the “storm” prior to the upcoming “calm”.
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Gifting shares to the board and management doesn’t do much to align interests. No real skin in the game
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our skin their game
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I hate the clown show that is mngt as much as the next guys (who is paying attention). But it seems to me that the selloff is consistent with a lot of stocks with high pe. Maybe its just stocks that did well last year and may be thought sensitive to interest rate hikes, and .TPL is lumped in. Still, i agree with the general sentiment that mngt justified their compensation based on stock price and so they politically own this.
bigger picture is higher oil prices is only good news for us tho.
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Anyone have a source?
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https://www.bnnbloomberg.ca/permian-oil-production-reached-record-high-last-month-1.1709438
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Would have never thought the great assets of Texas Pacific Land could be so undervalued with oil trading above 85 $ a barrel. Strange times indeed. The annual meeting next year will be the most interesting yet. Still very optimistic about the long term future of this company.
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FT: Permian Basin: high oil price breathes new life into US shale
https://www.ft.com/content/a8f8980c-44ca-47b6-9e61-e240ab3162b8
“The Permian is the biggest moving piece in global oil supply,” says Bill Farren-Price, a director at the research firm Enverus, “and we see it roaring back in 2022.”
‘The importance of the Permian is set to grow. As other basins struggle to keep production flat, or slip into decline, it is likely to be the only US oilfield with rising production.’
‘The data bear this out. Oil is cheaper to produce in the Permian than just about anywhere else in the country, with companies able to profitably drill a new well in the Midland region when oil is at $46 a barrel — roughly half current prices.’
‘“As far as production and activity, the Permian has a great, great future ahead of it,” she adds. “The world — and this country — is going to need the Permian for 50, 60, 70 years.”’
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Is Murray unloading his position? I hope not, but it’s the only thing I can think of that makes sense of this nonstop selling despite oil’s all time highs…
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He has to make filings every time he transacts in TPL. I don’t recall ever seeing him sell a share.
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He buys every day. I get the Form 4 he files via E-Mail every day.
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Stahl is not unloading his personal position, but it is quite possible that HK fund redemptions are causing them to sell for their funds. Or maybe McGinnis is unloading his “second largest” position out of spite. Or Hodges is fed up with management and unloading. Or Maurice Meyer’s estate is fed up with management and unloading. Any number of possibilities….
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Sign up here and see Stahl buy about 100 shares a week every week. https://www.texaspacific.com/investors/news-events/email-alerts
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tpltblogger
I do fondly remember the days when share price was above 1050.
those were good times indeed……….
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