18 thoughts on “Ruling Affirmed”

  4. That sucks big time.  I don’t think that they even looked at the facts before protecting one of their own.

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  5. I have to say what did you expect? When someone says in writing that they will do something and then doesn’t do what they said they would do, how could the court come to any other conclusion? If someone you signed a contract with did that to you, I expect you would sue them to try and enforce the contract. I realize that is the black and white interpretation. All the lawyers rolled out all kinds of shades of gray but that didn’t change the facts.

    Now we have a choice we can continue the pity party ad nauseum, or try and see if TPL is still a viable investment. In my view the fundamentals are great, that is what attracted me to the company. Their Profit Margin is 80.32%, they don’t have any debt, their water business is profitable and made up for some of the decline in the royalty income in 2023. They have almost 3/4 billion dollars in the kitty after paying the dividends and buying back stock. They are attempting to generate more income from that West Texas land that looks to me only good for raising rattlesnakes by hosting carbon dioxide capture, and wind and solar power generation on their massive surface land acreage. The short interest has remained stable in a range of 3 to 4%. When the stock split occurs the stock volume should increase. For me what is not to like. Oh yeah a number of commenters seem to have perpetual hard ons for TPL management, based on their fantasies of what life was like under Texas Pacific Land Trust which I believe I was told had three Annual Meetings in 20 years.

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    • Fair enough. I would say we are more concerned than aroused tho (no judgement on anyone who is the latter). Our concerns are similar to those in a another mining space, gold. Gold miners have destroyed shareholder for value for decades due to 1. Poor allocation of capital in exploration 2. Rising management costs and 3. Overly large boards and associated costs. Try owning $gdx as anything other than a trade. Although miners are different than royalty, the road feels eerily similar. Heading down this street definitely does not excite me.

      Liked by 1 person

  6. I searched for TPL Solar Power and found it mentioned in this Blog three or four years ago. the developer mentioned RWE gave me a clue who to search for and I found

    https://americas.rwe.com/our-energy/solar-energy/solar-projects-and-locations/

    West of the Pecos (WOTP) is a 100 megawatt (MWac) solar plant located in Reeves County, Texas, approximately 75 miles southwest of Midland-Odessa. Pecos is the county capital and seat of the Reeves County Administration in the state of Texas in the United States. The project utilizes nearly 350,000 solar modules on a surface of 550 football pitches and covers more than 700 acres within the county leased from Texas Pacific Land Trust and Texas General Land Office. WOTP is RWE’s first solar project in Texas and is currently the company’s largest solar facility in the U.S.

    Scroll down to the last of the active facilities and be sure and view the Video.

    I wonder if RWE has an ADR? Yes they do RWEOY traded otc in the US.

    Now to try and find the 100MW wind farm.

    Liked by 1 person

    • I haven’t found the wind farm yet but look what I found in the press releases on the TPL website. Notice TPL earns a “Royalty Interest” on this one.

      May 16, 2022 9:00am EDT

      DALLAS & HOUSTON–(BUSINESS WIRE)– Texas Pacific Land Corporation (NYSE: TPL) (“TPL”), Mawson Infrastructure Group Inc. (NYSE: MIGI) (“Mawson”), and JAI Energy (“JAI”) have entered into a strategic alliance to develop up to 60 megawatts of bitcoin mining on TPL’s surface in West Texas.

      Based on utilization of current generation Bitcoin mining hardware, these new facilities – which will be owned and operated by Mawson – could accommodate up to 2.0 Exahash of Bitcoin mining operational capacity. TPL and JAI will earn a net royalty interest and retain an option to acquire an equity stake. Mawson intends to participate in demand response programs as part of its power procurement strategy and is evaluating behind-the-meter renewable solutions. Mawson and JAI have four locations planned in Texas, with two located on TPL’s surface. Construction is expected to commence in the second quarter of 2022, and operations targeted to begin in the fourth quarter of 2022.

      “This project marks the beginning of TPL’s journey into bitcoin, and we are fortunate to collaborate with Mawson and JAI as two highly regarded companies in the bitcoin mining industry,” said Tyler Glover, CEO of TPL. “We believe TPL’s extensive surface footprint in West Texas can serve as a premier destination for the bitcoin mining industry, providing site locations proximate to existing grid infrastructure and excellent solar and wind resource for future renewable power procurement. We are aligned to see this venture succeed and scale as we look to leverage our unique asset base, industry and customer relationships, and the region’s energy abundance. For TPL, our shareholders will benefit from a unique royalty stream while retaining an option to participate as an equity partner.”

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  8. Nothing keeps shareholders or HK from puttting on the ballot a proposal to reverse this decision and shareholder Proposal 4. If the 3x split happens, a reverse split could undo that because HK and Softvest can now vote any way they want.

    Likewise the 3x shares for potential deal making could also be eliminated. And any stupid deals done could be unwound.

    In spite of the setback HK and Softvest have 25% of the shares, and an energized shareholder base will support them.

    The board has to realize this reality.

    Liked by 3 people

  9. I don’t know where you get your figures, when I look at the Top Shareholders report on Simply Wall Street I see the following. It seems to me the institutions will decide the outcome of any proposal not a subset of the individual shareholders.

    “Top 25 shareholders own 47.88% of the company [TPL]”

    Ownership  Name          Shares 

    16.7%    Horizon Kinetics LLC    1,281,215

    1.7%    Softvest Advisors, LLC    130,500   

    that adds up to 18.5% not 25%. 

    General Public   38.9%   2,985,119 shares

    Institutions    60.9%   4,670,529 shares

    There is also the issue that the 3 for 1 split is a condition of the court order.

    Liked by 1 person

  10. I noticed this comment in an article wrt TPL from Tip Ranks this morning and decided to search for detail. ”Despite the investor anxiety stemming from concerns about inorganic growth and the selling of shares by a major asset management firm,” Who?

    https://www.tipranks.com/news/blurbs/buy-rating-justified-by-texas-pacific-lands-strong-permian-basin-performance-and-solid-financials?mod=mw_quote_news

    I found the answer on the MarketBeat website which linked to two articles on Yahoo Finance.

    https://finance.yahoo.com/news/murray-stahls-firm-reduces-stake-100348884.html?.tsrc=rss

    “On January 31, 2024, Murray Stahl (Trades, Portfolio)’s investment firm Horizon Kinetics made a notable adjustment to its investment portfolio by reducing its stake in Texas Pacific Land Corp (NYSE:TPL). The transaction involved the sale of 75,126 shares at a price of $1,461.33 each. This move resulted in a -5.52% change in the firm’s holdings in TPL, impacting the portfolio by -2.17%. After the transaction, the firm held a total of 1,287,085 shares, representing 38.08% of the portfolio and 16.77% of the firm’s holdings in TPL.”

    and

    https://finance.yahoo.com/news/murray-stahls-horizon-kinetics-reduces-200532205.html?.tsrc=rss

    “On February 5, 2024, Horizon Kinetics, under the leadership of Murray Stahl (Trades, Portfolio), made a notable adjustment to its investment portfolio by reducing its stake in Texas Pacific Land Corp (NYSE:TPL). The firm sold 5,870 shares of TPL at a price of $1,428.98 per share. This transaction resulted in a 0.46% change in the firm’s holdings, decreasing its total share count to 1,281,215. The trade had a modest impact of -0.17% on the portfolio, reflecting a strategic shift in the firm’s investment stance regarding TPL.”

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