Zihuatanejo

tpltblogger38 Comments

We’re not on the beach in Mexico just yet. But good progress. Well done to all of those involved.

Texas Pacific Land Up over 10%, on Pace for Largest Percent Increase Since February 2022 — Data Talk

(Dow Jones) — Texas Pacific Land Corporation (TPL) is currently at $1612.00, up $146.70 or 10.01%

–Would be highest close since April 18, 2023, when it closed at $1616.35

–On pace for largest percent increase since Feb. 28, 2022, when it rose 11.52%

–Snaps a two day losing streak

–Down 31.24% year-to-date

–Down 40.63% from its all-time closing high of $2715.06 on Nov. 7, 2022

–Down 1.80% from 52 weeks ago (Aug. 4, 2022), when it closed at $1641.55

–Down 40.63% from its 52-week closing high of $2715.06 on Nov. 7, 2022

–Up 25.68% from its 52-week closing low of $1282.66 on June 23, 2023

–Traded as high as $1618.16; highest intraday level since April 18, 2023, when it hit $1634.34

–Up 10.43% at today’s intraday high; largest intraday percent increase since Feb. 28, 2022, when it rose as much as 12.58%

All data as of 1:50:40 PM ET

Source: Dow Jones Market Data, FactSet

(END) Dow Jones Newswires

38 thoughts on “ Zihuatanejo”

  1. From today’s earnings call transcript:

    “Current Directors and Co-Chairs of the Board, David Barry and John Norris have decided to retire and not stand for reelection at the 2023 Annual Meeting.

    “Dave and John have been involved with the company for decades, back to its days as a trust. They have always been great stewards for the company and have played a pivotal role in helping the company achieve the success it enjoys today.

    “Without their support, TPL would not have a water or surface business or the professional administration anywhere near the scale and expertise it has today. They saw and understood the potential that TPL’s unique assets possessed, and they took a chance to support a pivot to active management.

    “On behalf of the entire management team here at TPL, we are thankful for their service, guidance, leadership and friendship over the years, and they will leave behind an exceptional legacy at TPL.”

    Questions from two tame “analysts,” no mention of legal fees, etc.

    Disgusting.

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    • This was Glover’s view of the world, not we shareholders. He is Norris & Barry’s puppet and would NEVER allow someone to ask adversarial questions during a call. Glover and all the VPs and other people he brought on board to support his vision need to be on the next bus out of town ASAP to really save the company.
      I hope that the new Board makeup gets involved in the direction of the company.

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    • I would also like to thank Norris and Barry, and so here is a list of many of the things they have done for shareholders. Its a legacy of dubious achievement and shareholder value destruction brought to you by horrible governance

      1. Taught us a valuable life lesson. If a vote isn’t going the way you want, disrupt the process and sue the largest shareholder. Fair play is for sissies. Do this twice and spend millions. It ain’t your money, so what!
      2. If you have little skin in the game by owning shares, its possible to care little about the implications of your bad decisions.
      3. They have increased my appreciation of authoritarian regimes. Really liked all the ways to try and disadvantage the shareholders by game playing. Wonderful examples as seen by the “meeting is not really adjourned” nonsense for over 6 months. Or bringing 4 armed cops to the annual meeting. Or opposing a non-staggered board.
      4. They brought to the shareholders a proposal to dilute the shares significantly. The lesson here is obvious, we want to dilute your interest by acquisitions and just trust us. Especially since they have done so much to earn our trust.
      5. Helping me to understand they were an excellent example of putting the “douche” in fiduciary.

      Happy they are leaving. Disappointed its not until the annual meeting, and that I didn’t get to vote them out.

      Liked by 1 person

      • So very well said, but you forgot to say that it took a number of ‘douche bags’ to put the ‘douche’ in fiduciary. B & N weren’t the only two who kept voting against shareholder input. Where were the supposed ‘Independent’ Directors? We know that the General defines incompetent a**hole.

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  3. Blogger,

    While down there, keep an eye out for Epps, I read somewhere she may be on the lamb.

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  4. I think I’m going to regret not buying more sub $1300 aren’t I?

    But who knew we’d get Barry and Norris to walk out on their own without another big battle??

    Now Glover…

    Liked by 3 people

  5. somehow i just keep thinking it is like having a magnifican herd of milk cows milking the cows giving the milkers(directors)all the milk they can drink and poring the rest of the milk down the drain after giving the calves (stockholders)
    just a little sip to drink till next time they might get some more.

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  6. so sad… only manage to crank up an additional 30 shares when share price was 13xx…… now its truly sky is the limit BOYS!

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  7. I thought you all might like to look at the StockCharts .com customized chart I use to follow TPL. One of the StockCharts features is the ability to generate a Permalink of a custom chart that automatically updates each time it is viewed. [I don’t seem to have the ability to add screenshots to comments]. I find the Zoom Thumbnail [Right side of the chart especially useful for seeing recent days activity]. Enjoy!
    Here is the Permalink generated this morning. ttps://schrts.co/JdMRMYPZ

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  8. $1,745.82
    $134.59 (+8.35%)
    12:22 PM 08/04/23

    crazy what B&N meant. IF prop4suit goes as expected………..

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    • Imagine the feeling of watching a stock rip upwards because it was announced you are leaving the company…

      Now I’m happy B&N barely have any shares so it’s a double whammy! Good riddance.

      Liked by 3 people

      • Imagine how it feels to have people tell you through actions that you no longer being involved is worth about $2 billion in increased market cap.

        Liked by 1 person

  9. So enjoyable to see the positive momentum of the last few days! In addition to the Board “refresh,” encouraging 2Q results, and the Crude rally, I suspect the good news anticipation of Prop 4’s death is already baked into this upswing. I would be SHOCKED if there was a different outcome, and the B&N resignation signals that TPL has no plans to appeal the decision when it comes. Onward and upward!

    Liked by 1 person

  11. If you were to tell me a week ago that B&N would resign, I would have said that is a crappy pipe dream…

    TPL investors have endured some crappy smelling foulness that we could never have imagined.

    Today…”hope is a good thing, maybe the best of things…”

    I hope 900K ACRES IN A C-CORP is as rich as it has been in my dreams. I hope..

    Zihuatanejo!

    Liked by 2 people

  13. I would say that is short sighted. You can try and vote him off the board in 2024 when his term is up, but without the support from the institutional investors you probably won’t succeed. As to the CEO job when you look at the fundamentals of the company management has been doing a great job adding to the royalty income. Plus he has over 10 years of institutional knowledge that would be missed and the CEO doesn’t get elected by the stockholders, that’s a Board of Directors call. The I Sue Twins were the ones trying to treat TPL as if it were still the Royalty Trust that was their fiefdom for their lifetimes. What’s not to like about having well over a half a billion dollars cash on the balance sheet that’s being put to work and no debt. Would you rather have it sitting in a non interest bearing bank account?

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    • As I said, it’s more about what are clearly his aspirations to turn the company into a vehicle for his ambition, at our expense. I don’t believe that 2 board members, as bad as they are, would have done this (this specifically being lying about an incredibly dilutive share maneuver to try to be Permian “players”, lying about it, and then wasting tens of millions of shareholders dollars on an absurd lawsuit) without Glover’s encouragement and backing. He has lost trust that I think will be difficult, if not impossible, to regain.

      Liked by 1 person

    • I disagree. Royalty income is solely from the companies that are actually drilling, and management (Glover) has nothing to do with that. Hiring a bunch of VPs (2 Lawyers) to build his fiefdom and want to ‘grow’ the business by acquisitions is Glover’s contribution to mismanagement.

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      • I don’t disagree with your statement about Royalties, but I would point out one third of the earnings don’t come from royalties according to Factset data provided by Merrill Lynch.

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        • In order to foster a true debate about the added value of non-royalty revenue/profit, you also have to look at the costs associated with this “actively managed” portion of the business (“water business”). Does it overall bring the margins of the company down? Could the capital that goes into it be better utilized for share repurchases/dividends? The water/non-royalty business may generate 1/3 of the revenue but it definitely costs more than 1/3 of the expenses.

          Liked by 1 person

  14. We can agree to disagree. Assuming that the 3 Director Candidates approved by the board get elected that still leaves a majority of the Board not necessarily supporting change. One thing that concerns me is the I Sue twins are still running the Board until the end of the 2023 Annual Meeting. Who knows what mischief they may get up to.

    Also I think their fingerprints are all over the lawsuit, just look at the similarity to the 2019 lawsuit that led up to the stockholders agreement and the out of court settlement.

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  15. I think Glover is a major part of the empire building and deal making attempt, and with Norris and Barry willing to litigate anything that weakened HK/SV. That seemed clear as I read the various trial transcripts. He didn’t want Eric Oliver, and strongly supported Don Cook in the first legal battle.

    I think he can be voted out. HK and SV will be free to vote how they want starting after the adjournment of the 2023 meeting. They won’t forget easily how much his different directions have cost them in legal fees. Doing the math, if the loyal shareholders are 10% of TPL, and HK/SV is 20%, thats 30% against him to start.

    Its also possible institutional ownership might even recommend voting for him. Frankly, his board position look tenuous in 2024.

    He owns few shares. His salary is 4 million a year. The agreement years ago for senior executives and the board to own substantial shares has not been enforced. He represents the classic agency problem and cares more about the paycheck and bonus. Said differently, his objectives are not aligned with mine,

    Liked by 1 person

    • Major error I made of a missing word in the third paragraph. Should say the below, missing word in all Caps.

      Its also possible institutional ownership might even recommend NOT voting for him.

      In the 2021 Annual Meeting, CalStrs recommended voting against Glover. Some institutions have had a concern in the past. There are more reasons now with the expensive anti-shareholder lawsuit over the split and dilution proposal which Glover as CEO fully endorsed.

      Liked by 1 person

  17. Speaking of B&N departures. Anyone else find it ‘coincidental’ that TPL announces the boardroom refreshments at the same time as releasing quality q2 earnings? Plot TPL vs DBO (WTI proxy) on a 3month chart and they track pretty closely until refreshments were served and TPL rocketed way beyond WTI. Cant separate effects, so to some it will seem like rewards for a good qtr and not getting paid for delivering tasty refreshments.

    with all the bears around the house this year, this could just be paranoia

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    • The press release mentions letters of resignations from both Murray and Eric. If they resigned, then they could vote as they wish. In that case, there was no likely way for the I Sue twins to win. Other board members probably caught on to this and decided to make nice, as the tides were shifting.

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  19. Those resignation letters were required by Section 1 paragraph (F) of the stockholders agreement “for Investor Group Designees, an executed conditional resignation letter, addressed to the Board, to become effective upon (1) in the case of the Horizon Designee, the earlier of (x) Horizon ceasing to beneficially own, in the aggregate, a Net Long Position of at least 10% of the issued and outstanding shares of the Common Stock (the “Minimum Ownership Event”), and (y) the Termination Date, and (2) in the case of the SoftVest Designee, the earlier of (x) the Minimum Ownership Event, (y) the Horizon Designee ceasing to serve on the Board, and (z) the Termination Date; (ii) qualify as an Independent Director; (iii) agree to take all necessary action to not be considered to be “overboarded” under the applicable policies of Institutional Shareholder Services, Inc. and Glass Lewis & Co., LLC as a result of his or her appointment to the Board; and (iv) not be otherwise disqualified from serving as a member of a board of directors of a public company with shares traded on the NYSE.”

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  20. I am sure you all are frustrated waiting for some development from the Lawsuit in the Delaware Court of Chancery. I know I am. I have been checking the court docket every week and discovered that they publish the coming weeks docket in the middle of Friday afternoon, and also publish the orders and opinions on their website. As of last Friday their was no indication of any developments. I do notice V.C. Laster’s name appearing occasionally, but nothing related to TPL’s case.

    https://courts.delaware.gov/chancery/

    Liked by 1 person

  22. I just checked the Delaware Court of Chancery website. The next weeks Docket is posted as of 12:19 EDT. V.C. Laster has a Post Trial scheduled for Friday but it is a different case. Nothing new wrt TPL in opinions and orders.

    Liked by 1 person

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