One has the sense that they are personally invested in the water business more than the success of the entire enterprise. While they are pursuing lots of avenues to monetize, it seems they are making large scale arrangements rather than maximizing the leverage in each and every easement.
Why not sell the water business and focus on developing the land use on a case by case basis?
I come away from every quarterly conference call frustrated and less confident in this management team. Ty reads some prepared remarks; Chris regurgitates the numbers we already saw in report. They take a few softball questions from analysts and answer with vague, smug platitudes. Then be sure to and end the call 5 minutes before the top of the hour before any tough questions can surface. How much I would like to ask, “To what would you attribute the >30% price decline over the last three months and what (with your “active” management prowess) are you doing about it!? How many shares have been repurchased to take advantage of the price drop and what do you intend to do with the shares once you salt them away in treasury for future use (rather than retiring them)? Despite the record earnings, why have you actually missed the consensus estimate (whatever that’s worth) four of the last five quarters?”
Yes, I’m having a bad day and am incredibly annoyed with this clown show. We should start a countdown for when we can vote out Dave Barry and any others on the chopping block — unless, of course, they will find a way to delay and invalidate that vote.
I can already hear Europe’s “Final Countdown” playing in the background as I read your comment.
I would be losing confidence, if I had any to lose.
At the heart of the matter is that this has been owned overwhelmingly by long term holders, who have been well rewarded with the slow and steady “going out of business sale” approach to low overhead liquidation, and a new management team that wants to build this into an empire, complete with a geographical reach that would make it abou 168th largest country in the world – so pretty small, but larger than most of the Caribbean and many South Pacific island nations, plus the micro-states of Europe (it’s a bit larger than Luxembourg, by about a 3rd).
The management team is keen to create lots of businesses – driving revenue, but also lots of fixed expense and operating leverage, which cuts both ways. It makes the business larger but more volatile and none of this is what the investors really signed up for. It’s a trade off, and maybe not a terrible one; but it is clear that this management team doesn’t seriously entertain alternative approaches that would enable to company to stay small and just focus on FCF and the slow motion going out of business sale.
There are other water businesses active in the area, they could shop TPL’s for cash and licensing revenue and keep the small office with low overhead. Alas, the previous trustees started moving away from this, and the corporate form, while offering some more power to shareholders than did the trust.
I don’t even mind that management is looking for new monetization strategies for the assets and that in some cases, seed capital may be required to get the business and operating models well established and provien out. But the strategy ought to be merchant banking them, not operating them.
Don’t suppose that there will be a move back toward the old approach, at least not any time soon.
sorry, hit send before finishing my point – i think merchant banking assets that can have advantages based on access to TPL land is a very interesting strategy. I just don’t see a desire to be merchant bankers, they want to internally operate everything.
But I think they should look to bring some merchant banking experience on to the BOD.
also noticed that since Feb 16, HK hasnt been buying shares of TPL anymore…. has the management clown show pushed Murray away?? hope not… i originally thought it was due to the blackout period around earnings date, but i checked previous earnings filing dates and they been buying throughout….
I assume that TPL is not retiring the shres that they bought. That means that TPL will be paying itelf dividends and paying taxes on them and probably counting the dividends as earnings. What a deal? With 500 million cash , there should have been some mention on what it earned in the last quarter unless there is a”friendly” bank involved. T-bill should have earned about 5 million for the quarter.
Treasury shares are not shares outstanding, so there’s no dividends.
But unlike retired / cancelled shares, they are available for distribution – either as options or in an acquisition.
One last question on these shAarew–do they geet to vote—and who votess hem
one last question concerning these “shares”—do they have a vote and who votes them?
The Texas Pacific Land Trust Investor 
Sounds like a lot of talk and no definite answers???
LikeLike
Word salad to say they are underperforming for share holders.
LikeLike
One has the sense that they are personally invested in the water business more than the success of the entire enterprise. While they are pursuing lots of avenues to monetize, it seems they are making large scale arrangements rather than maximizing the leverage in each and every easement.
Why not sell the water business and focus on developing the land use on a case by case basis?
LikeLiked by 1 person
I come away from every quarterly conference call frustrated and less confident in this management team. Ty reads some prepared remarks; Chris regurgitates the numbers we already saw in report. They take a few softball questions from analysts and answer with vague, smug platitudes. Then be sure to and end the call 5 minutes before the top of the hour before any tough questions can surface. How much I would like to ask, “To what would you attribute the >30% price decline over the last three months and what (with your “active” management prowess) are you doing about it!? How many shares have been repurchased to take advantage of the price drop and what do you intend to do with the shares once you salt them away in treasury for future use (rather than retiring them)? Despite the record earnings, why have you actually missed the consensus estimate (whatever that’s worth) four of the last five quarters?”
Yes, I’m having a bad day and am incredibly annoyed with this clown show. We should start a countdown for when we can vote out Dave Barry and any others on the chopping block — unless, of course, they will find a way to delay and invalidate that vote.
LikeLiked by 1 person
Always the bare minimum. Without exception.
LikeLiked by 1 person
I can already hear Europe’s “Final Countdown” playing in the background as I read your comment.
I would be losing confidence, if I had any to lose.
At the heart of the matter is that this has been owned overwhelmingly by long term holders, who have been well rewarded with the slow and steady “going out of business sale” approach to low overhead liquidation, and a new management team that wants to build this into an empire, complete with a geographical reach that would make it abou 168th largest country in the world – so pretty small, but larger than most of the Caribbean and many South Pacific island nations, plus the micro-states of Europe (it’s a bit larger than Luxembourg, by about a 3rd).
The management team is keen to create lots of businesses – driving revenue, but also lots of fixed expense and operating leverage, which cuts both ways. It makes the business larger but more volatile and none of this is what the investors really signed up for. It’s a trade off, and maybe not a terrible one; but it is clear that this management team doesn’t seriously entertain alternative approaches that would enable to company to stay small and just focus on FCF and the slow motion going out of business sale.
There are other water businesses active in the area, they could shop TPL’s for cash and licensing revenue and keep the small office with low overhead. Alas, the previous trustees started moving away from this, and the corporate form, while offering some more power to shareholders than did the trust.
I don’t even mind that management is looking for new monetization strategies for the assets and that in some cases, seed capital may be required to get the business and operating models well established and provien out. But the strategy ought to be merchant banking them, not operating them.
Don’t suppose that there will be a move back toward the old approach, at least not any time soon.
LikeLike
sorry, hit send before finishing my point – i think merchant banking assets that can have advantages based on access to TPL land is a very interesting strategy. I just don’t see a desire to be merchant bankers, they want to internally operate everything.
But I think they should look to bring some merchant banking experience on to the BOD.
LikeLike
So, how many Dallas police officers will be at this annual meeting?
LikeLike
“Clow show” sums it up. In this case, the clowns pack themselves into a plane rather than a small car.
LikeLike
also noticed that since Feb 16, HK hasnt been buying shares of TPL anymore…. has the management clown show pushed Murray away?? hope not… i originally thought it was due to the blackout period around earnings date, but i checked previous earnings filing dates and they been buying throughout….
LikeLike
Earnings blackout period, perhaps?
LikeLike
I thought that was the case but I checked prior earnings announcement periods and HK bought throughout those periods, check last year for reference
LikeLiked by 1 person
lawsuit may be a factor here
LikeLiked by 1 person
I assume that TPL is not retiring the shres that they bought. That means that TPL will be paying itelf dividends and paying taxes on them and probably counting the dividends as earnings. What a deal? With 500 million cash , there should have been some mention on what it earned in the last quarter unless there is a”friendly” bank involved. T-bill should have earned about 5 million for the quarter.
LikeLike
I asked Investor Relations regarding dividends for the treasury stock. Those shares don’t pay dividends according BTI IR.
LikeLike
Treasury shares are not shares outstanding, so there’s no dividends.
But unlike retired / cancelled shares, they are available for distribution – either as options or in an acquisition.
LikeLike
One last question on these shAarew–do they geet to vote—and who votess hem
one last question concerning these “shares”—do they have a vote and who votes them?
LikeLike
No votes for treasury shares.
LikeLike