Author Topic: TPL - Texas Pacific Land Trust  (Read 36941 times)

ValueMaven

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Re: TPL - Texas Pacific Land Trust
« Reply #40 on: April 30, 2019, 06:03:31 PM »
Very true - but management seems to be aggressively fighting back, while the Acitivsts have much clearer plans etc. I'd love to know what you think here in terms of upside and downside etc ... TPL is really such a unique security ... only 4 shareholder meetings in 30 years .. what the heck?!


Gregmal

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Re: TPL - Texas Pacific Land Trust
« Reply #41 on: April 30, 2019, 11:26:43 PM »
I will preface my statement with the disclaimer that I hate management teams that don't appreciate their own mortality. TPL is/was a monster, with or without them. So I've been massively turned off by the credit they want to give themselves for the performance. I also dont like the degree to which they move forward with hostility, towards the company's largest shareholder; all while they themselves own little stock.

At the same time, to me it appears the dissident wants to orchestrate a conversion of sorts; again, I liked this how it was.

Water rights? I've looked at quite a few companies in this space; and its just a very tough, capital intensive business. I dont like that they are now speculating on new land purchases. If it aint broke, dont fix it. TPL was a gem. It's literally gone full cycle. From off the radar under appreciated, to.. well, something those with and those without vested interested are fighting over... all trying to push something that I am not sure I agree with.

Just my 2c. I'd love to offer upside/downside for you. But my thesis never really relied on that if that makes sense. This was just a great place to be, in a dynamic set of off the radar assets that had optionality. Now to me, the optionality is limited because of the risks that this gets fucked up. I think the easy money has been made and while I still appreciate what this is, I can't really say that what its become is what I appreciated it for.

Gamecock-YT

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Re: TPL - Texas Pacific Land Trust
« Reply #42 on: May 01, 2019, 03:01:07 AM »
Story got picked up by the FT:

https://www.ft.com/content/7a355406-5fc4-11e9-a27a-fdd51850994c


Personally, story just reeks of the trustees trying to avoid their gravy train coming to an end.

ValueMaven

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Re: TPL - Texas Pacific Land Trust
« Reply #43 on: May 02, 2019, 06:30:10 PM »
This is really turning into one of the nastiest activist fights I have ever seen.  It is very clear to me that the Trust's management has milked this company -- and then some!!  They need to go.

This really is one of the most unique securities in the world.  I am voting for Eric Oliver without question.  The more I study this - the more exposure I want.  I just wonder how much shareholder capital is being BURNT through this whole stupid process?   

Others?  Thoughts?

ValueMaven

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Re: TPL - Texas Pacific Land Trust
« Reply #44 on: May 04, 2019, 07:09:39 AM »
the more I study this 'trust' the more amazed I really am.  In 1932 there were 500M shares O/S, now there are only ~7.7M  shares and net income has exploded recently.  Part of me feels like I am very late to the story here - the other part says that the fun is really just starting as NI explodes higher, conversion to a C-Corp, and possibly even more aggressive buybacks.  No question in my mind Eric Oliver is the right person for the job here.  Sure there is price risk, not really business risk - but with over $100M on the B/S and literally no debt, management needs to start buying back more stock.  Maybe even a 10-1 stock adjustment. 

May 22nd is a critical day for this company.  I really wonder how much is being spent blocking shareholders from getting representation

BTW - does anyone have Horizon's 2005 research update on TPL?  I've found a lot of interesting material, but that one is missing from my files.  Thanks!

-VM

Sharad

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ValueMaven

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Re: TPL - Texas Pacific Land Trust
« Reply #46 on: May 08, 2019, 06:01:36 PM »
The Trust is an utter JOKE and wasting a massive amount of shareholder capital which could be used to aggressively buyback stock here. 

Sharad

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Re: TPL - Texas Pacific Land Trust
« Reply #47 on: May 21, 2019, 12:04:25 PM »
The Trust is an utter JOKE and wasting a massive amount of shareholder capital which could be used to aggressively buyback stock here.

It's getting worse. They have now decided to delay the rescheduled June 22, 2019 meeting to a to be determined future date. I have never seen anything like this:

Texas Pacific Land Trust Files Lawsuit Against Eric Oliver for Securities Law Violations
BusinessWire
Texas Pacific Land Trust (NYSE: TPL) (the "Trust") today announced that it has filed a lawsuit (the "Lawsuit") in the United States District Court for the Northern District of Texas against Eric L. Oliver for violations of federal securities laws in connection with the proxy contest Mr. Oliver initiated to be elected as a trustee of TPL. The Trust also announced that the special meeting of shareholders previously scheduled to be convened on May 22, 2019, and to be adjourned until June 6, 2019, has been postponed until further notice.

The Lawsuit alleges that Mr. Oliver made material misstatements and failed to disclose material information relevant to shareholders and that Mr. Oliver has acted in concert with an undisclosed group including Santa Monica Partners, Universal Guaranty Life Insurance Company and potentially other third parties. The declaratory and injunctive relief sought in the Lawsuit seeks to compel Mr. Oliver to provide complete and accurate information about his actions and his past in order to allow shareholders to make a fully informed decision.

"We have repeatedly raised serious questions about Mr. Oliver's background and potential conflicts of interest, to which he has refused to provide an adequate reply," said Trustee David E. Barry. "Election of an unqualified or conflicted trustee could cause significant harm to the Trust and its shareholders, so we have no choice but to ask the Court to help us protect shareholders' interests. We have postponed the special meeting to ensure that shareholders have the opportunity to cast a fully informed vote."

Shareholders will be notified of the exact date, time, and location of the rescheduled Special Meeting at a later date.

Sidley Austin LLP is representing the Trust.

Forward-Looking Statements

This release may contain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this release, other than statements of historical fact, are "forward-looking statements" for purposes of these provisions, including statements regarding Texas Pacific's future operations and prospects, the markets for real estate in the areas in which Texas Pacific owns real estate, applicable zoning regulations, the markets for oil and gas, production limits on prorated oil and gas wells authorized by the Railroad Commission of Texas, expected competitions, management's intent, beliefs or current expectations with respect to Texas Pacific's future financial performance and other matters. Texas Pacific cautions readers that various factors could cause its actual financial and operational results to differ materially from those indicated by forward-looking statements made from time-to-time in news releases, reports, proxy statements and other written communications, as well as oral statements made from time to time by representatives of Texas Pacific. The following factors, as well as any other cautionary language included in this release, provide examples of risks, uncertainties and events beyond our control that may cause Texas Pacific's actual results to differ materially from the expectations Texas Pacific describes in such forward-looking statements: global economic conditions; market prices of oil and gas; the demand for water services by operators in the Permian Basin; the impact of government regulation; the impact of competition; the continued service of key management personnel; and other risks and uncertainties disclosed in Texas Pacific's annual reports on Form 10-K and quarterly reports on Form 10-Q. We undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where we are expressly required to do so by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190521005896/en/

SOURCE: Texas Pacific Land Trust
"If we are not able to ask skeptical questions, to interrogate those who tell us that something is true, to be skeptical of those in authority, then we are up for grabs for the next charlatan - political or religious - who comes ambling along."
- Carl Sagan

ValueMaven

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Re: TPL - Texas Pacific Land Trust
« Reply #48 on: June 16, 2019, 07:57:29 AM »
Has anyone been following this really, really stupid saga???  I cant wrap my head around what is going on here...

Sunrider

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Re: TPL - Texas Pacific Land Trust
« Reply #49 on: June 17, 2019, 07:49:00 AM »
Has anyone been following this really, really stupid saga???  I cant wrap my head around what is going on here...

Quite simple. Entrenched management (trustees are appointed for life) has been called out for their not very good management by activist investors. One of three trustee seats came up, management nominated someone they like, activists want someone they think is better. Now they are suing each other. My view is that the activists are right and the company would be better of with a trustee who understands capital allocation - also, it seems to be the case that the trustees are not empowered to spend trust cash for proxy contests, which they now have ...