Texas Pacific Land Corporation (TPL) Options

I guess he means you. Have you been tested for rabies lately?

Too many rabid pumpers?

LOL.....surely you're not serious? You think people are pumping a $1000+ stock?

I never bought TPL in the first place because it always looked ludicrously shilled to me. Too many rabid pumpers on this board.

I sold 2/3rds of my shares at $1738 as it looked like the pullback was coming. $1285 is a support level and I may just add back a third today.
I watch Landman for the daughter.

Wow. I called that wrong. Nothing but dump city since the uplisting.
Not worried in the long term. Index buying will carry this back up to $2k eventually.
Meanwhile, I will content myself with watching Landman -- the Texas oil patch melodrama with Billy Bob Thornton.

$TRV has been a great stock. Too bad I never bought any. However, you putting down the growth stocks as individual buys is wrong. When I sold my last house, rather than haggle over the measly $10 or $20k more I might get, I sold on Open Door, I put the sales money into AMZN, MSFT, AAPL, NFLX and I think the other was ...well I can't think of it now....anyway, within 4 months, I was able to pay cash for my much bigger house on the Country Club course.
There is not just one way to make money in the market. You just need to understand it.
Nothing wrong with slow and steady, but it is the hot short term markets that often times make for those crazy total returns. This year has been a classic example in how to make money in most everything. Of course......there's inflation and taxes ....
My overall portfolio is up over 30% this year! That's just crazy when you're dealing with large numbers

"I always hated when people said that investing is gambling." IHUBers don't like the brilliant advice I give which is to invest in the dullest, most boring stocks. Never individual tech or hot start ups. Few issues are more boing than an S&P 500 index fund. Then check back every few years. Buffett's said the same.

Opinions will vary, but few sectors are more boring than insurance. You don't see the newbies on RobinHood buying insurance stocks but such stocks have done great and made boring old Buffett a billionaire. Currently I own BRK and TRV, both fabulous winners. For long term tech exposure my kids own QQQ.

I don't put a cent in a machine guaranteed to beat me badly.

I invest; I don't bet. No slots for me. Ever.

Hmmmmm, a bit tempted to buy back some shares now that it's down $100 from where I sold it.
They are paying a dividend on 12/2....maybe I should wait until Ex Div?

I think Buffett has always wanted to help the average person when it comes to investing. Using a low-cost index fund is cheaper than paying a broker an asset management fee.

This is one of my very large pet peeves. The government is pushing for using management fee over transaction fee based accounts. So these so called "CFP's" like Fisher Investments tout they make money when you do....This is stupid and merely an advertising effort. Recently I called them (and now can't get them to leave me alone). I asked them what I get for a half million....Basically, nothing special at all. In fact they will probably underperform.
The government wants to do away with brokerages and single stock buying. They want everyone in an ETF based on an index. It would be so much easier for them to control the market in this way.....In the meantime, companies like Fisher want to charge me 1%+ on my entire portfolio, even though the muni bonds would just be sitting there until maturity.
With the government pushing for management fee, this came with the caveat that they want to see MORE trading, so that brokerages aren't just parking the money and forgetting it. The very opposite strategy of what intelligent investors have been doing for decades.
In my opinion, for my mutual fund money, I can buy an index, which HAS to buy certain stocks AND sell these stocks if they are removed from the index, but not until.....or I can pay American Funds to typically outperform the index with a much lower Beta and fees almost as low.....but they can make decisions.....just as I can with my individual stocks.
I' m at an advantage to most, I have time to follow the market every day, and I have some common sense left. I also diversify

I don't know the difference between VOO and all the other S&P Index funds.
The only index I really like is RSP. It equal weights the index and doesn't just sell you another tech fund in drag.

Buffet has a HUGE advantage over mutual funds and individuals. He doesn't fall under the same reporting standards of a mutual fund and he's big enough that companies come to him with information before the street gets it. I didn't say he recommends individual stocks, I said he buys them over indexes. If an index ETF was the all in end all way to invest, it's where all his money would be. I don't like the idea that Buffet can dump all his MSFT if he wants to, but in an index fund I'm left holding his bag. SURE he wants YOU in an index.

Here is a great article worth reading, if you can get the Wall Street Journal this morning. It explains a lot of what is driving this company's profits.

https://www.wsj.com/business/energy-oil/one-of-the-hottest-stocks-in-the-oil-patch-is-a-defunct-19th-century-railroad-4b10a483

No gambling addict here.  

I do play low-volatility slot machines for fun. My goal is converting free play into cash and earning free nights. Sometimes, you also get lucky. Most people simply give it back by looking to repeat.

I always hated when people said that investing is gambling. I think we would all agree that few people have the skill to make investment decisions on their own. My best friend and wife has only placed one trade in her life. It actually happened a couple of weeks ago.

I think Buffett has always wanted to help the average person when it comes to investing. Using a low-cost index fund is cheaper than paying a broker an asset management fee.

Regarding education, I believe I would rate above average. I have earned a BBA with a concentration in finance from Southern Methodist University (1985), a MBA in Corporate Finance from the University of Dallas (1995)  and a MS in Real Estate from University of Texas at Arlington (2023).

Buffett doesn't recommend specific stocks and what he owns by way of BRK is very, very VERY public. Currently BRK has tiny, almost trivial positions in two S&P 500 index funds, SPY and Vanguard's VOO. My kids own SPY and my CPA son also has VOO. Both of my kids are now fairly wealthy by most standards.

As for free trading, that doesn't interest me. I trade stocks maybe once or twice a year. I want the strongest brokerage houses, not the cheapest. Sometimes I'll park some cash in short term bond funds. I'll usually hold them to maturity which is always short term.

BTW, my CPA son also has a degree in finance, with honors. I've found few IHUBers who know anything about investing. Many are hopeless gambling addicts.

GL

I know by now I'm not going to change you and you're not going to change me. You aren't going to change your style because I say so, and your style is better than most. I'm merely trying to share my 30 years of wisdom with you.
One last cautionary tale.....My father traded through Olde and company. I believe they got bought out by H&R Block. Anywho, he used to brag how much he liked trading with them because $500k accounts got free trading. One day he sold off something at the market...free trade.....until I pulled the buys and sells at that time. His trade went through $1.11 lower than the trade before and after his according to the time stamp. Sure, Olde did free trades. It just cost him $1100 for 1000 shares on that free trade.
Sometimes free doesn't mean free and sometimes trades are done as cross trades within a company and the shareholder gets screwed. And sometimes lower expenses aren't as beneficial as you think.
And lastly, I don't WANT to own the S&P Index. Certainly not with how it's weighted now.
Warren Buffet may be recommending the Index to small uninformed investors, but he's not buying it for himself.

"I don't want my ETF skimming off the top."

When I started investing in the 1960s standard commission to buy a stock mutual fund was 8.5% No one called it "skimming." It was the profit charged for the considerable services provided. Now Vanguard has some funds with expenses in the neighborhood of .03% or even less. And most brokerage customers, like me, are getting wealthier and wealthier. Zero complaints.

---
You can create your own free and perfect S&P 500... just buy 500 different stocks and handle the rebalancing and filings yourself. See how that works for you.

Even wilder guesses are inventory numbers from retail stores such as department stores. A CPA once told me they aim to be plus or minus 5% with their numbers, and forced liquidation numbers are probably off by vastly more than that. Error in index funds from re-balancing are microscopic.

If I'm buying an S&P 500 ETF and the index is at 6015, then I want my ETF to be trading at $60.15, not $59.45 plus expenses. In other words, I don't want my ETF skimming off the top. Has nothing to do with liquidation or book values.
ETF's get to skip a lot of rules. I'm just not a fan, although admittedly, it is easier to use....and mutual funds are becoming a thing of the past. All the mutual fund companies are switching over to ETF's now. They say for tax reasons

Nothing ever tracks anything precisely, but that doesn't matter. All accounting involves approximations. I have millions in index funds and related ETFs. Do you think the Book Value of a company is precise to the cent??? Numbers like Depreciation are simply best guesses. Buffett and Munger often talked about the Margin of Error.

If you own stock in a car rental company, do you think those cars could be liquidated precisely at book value??? And even the most accurate numbers are updated every three months and released to the public only much later.

I did not know this. I would suggest you be very careful with artificially made ETF's. They are the modern day version of the Hedge Fund as they get to skirt a lot of rules. They rarely track accurately their investments.
Many, many years ago a wise man told me, stay away from derivative products.....this was great advice.

Did you know that TPL is the largest holding in the iShares Core S&P IJH mid-cap ETF which I've owned for several years. It's been a good performer lately as the chart below shows. Now at all-time high.

https://finviz.com/quote.ashx?t=IJH&p=d

I did recently. YTD S&P + 26.24.....I was +29% a few weeks ago and it has gone higher recently....and I have some muni bonds in my portfolio.
I haven't compared my American Funds IRA lately, but almost every year it has beat the S&P 500 with far lower beta. In fact, I can't recall a year it hasn't.
Most people on IHUB are dumb and have no clue that they are doing things backwards. I would never use the S&P index fund. It is the only one guaranteed not to beat the market. Sadly though, most mutual fund managers fear losing their job more than outperforming the market, so most do underperform.
When you're buying the Index, you're pretty much buying about 6 stocks and I own those on my own anyway, but I'm not stuck in them like the fund is.

https://www.capitalgroup.com/advisor/investments/americanfunds?shareclass=A&pricing=NAV

Never had Woolworth. I don't use Buffett's strategy. I use John Bogle's, if any one person should get credit/blame for my style. But Buffett now owns two index funds, VOO and SPY. AND HE STILL DOESN'T USE CHARTING, OR Tealeaves. I do have a far amount of BRK

Investors who use index funds don't leave index funds. Never seen that happen. You should benchmark your portfolio against the S&P 500. Give it a test... as I did 30+ years ago, and since.

Sure. I was just trying to do some math to determine what percentage being added to the S&P 500 adds to the value of the company. Since TPL is thinly traded, I thought it might be useful to track.
On a side note, SMU has really shocked me this year, but I would have liked to see them play Clemson.

It is a one-time event as long as it remains.

How would you be doing if you held Woolworths?
There are stocks worth holding forever (although not as many as there used to be), and stocks to be trading. Case in point, Warren Buffet doesn't own any TPL.
You can't use Warren's strategy to every stock. TPL has had some wild swings in the past and you would have made much more by trading this.
This stock has a P/E of 82 now. Probably the highest its ever had. Great stocks do get overbought. BTW, I also own DE, but it had been stuck in a 3 year stall, and just broke out this month.

You're answering my question backwards. I'm not asking what TPL adds to the S&P, I'm asking what the S&P adds to TPL

"It may be a mistake, but I have now sold off 2/3rds of my position here and will let the rest ride." Trading is *usually* a mistake. There's all sorts of academic research showing that.

I haven't sold anything in years and have done great for that reason. Some of my biggest holdings are 20+ years old, such as Cintas. Rockwell Automation and my index funds, especially QQQ which is about a 15 bagger.

Did buy John Deere a few years ago. It's been good and has raised its dividend once or twice too.

Kids are both well employed, a CPA and an engineer at Boeing. Are you referring to my Boeing son? He's got a lot of seniority if that counts in the layoffs. He started at Boeing when he was very young and has only had one real job in his life. Still working there and likes it. Virtually all of his retirement money has been in index funds, and not BA shares.

"how many dollars (or percent) can one anticipate being added to the S&P 500 index add?"
One can't even guess at that. The S&P rebalances often on the third Friday of the quarter. But they add and subtract components. The S&P ("500") is based on market cap which varies continuously. (OTOH the Dow is based on the stock's market price). S&P usually holds about 505 stocks rather than 500.

TPL won't have much weight in the S&P. Its cap is currently $36 billion which is pretty average. Probably much less that 1% of the index. Why think about it?
https://www.slickcharts.com/sp500

LOL....well first off, congrats on your son having a job. My children are both in the workforce as well.
However, you did not in any way answer my question.
My question was......how many dollars (or percent) can one anticipate being added to the S&P 500 index add?

It may be a mistake, but I have now sold off 2/3rds of my position here and will let the rest ride.

Thanks, that was new to me even tho I know quite a bit about BRK's earliest days.

What a beast. SP should hit $2000 by uplisting next week.  

Stocks are added and deleted from the S&P 500 all the time. I've owned SPY, GSPC and the Vanguard Total Stock Market Index Fund for decades. My CPA son also has VOO, another S&P 500 index fund. It's good news for TPL long run. My kids also have DIA (DOW 30) and -- lucky for them -- QQQ. I also own IJH, a mid cap index fund.

QQQ has been about a 15 bagger since around 2009 when I put them in it

What's your guess? How many dollars would being added to the S&P equate to in dollars here? And do you see any other news to make you think this isn't overly valued now?

Now THAT is big news! That does explain the big spike.

Texas Pacific Land To Replace Marathon Oil In S&P 500 (12/21/24)

https://press.spglobal.com/2024-11-21-Texas-Pacific-Land-Set-to-Join-S-P-500,-Mueller-Industries-to-Join-S-P-MidCap-400-and-Atlas-Energy-Solutions-to-Join-S-P-SmallCap-600

Anyone else thinking this is the week for a pullback? Think I should sell a third of my position

Texas Pacific Land Corporation Acquires Permian Mineral Interests and Surface Acreage in Cash Transactions (8/27/24)

Acquisitions Add High-Quality Assets that are Expected to Generate Attractive Returns

DALLAS--(BUSINESS WIRE)--Texas Pacific Land Corporation (NYSE: TPL) (the “Company” or “TPL”) today announced the closing of two acquisitions for oil and gas mineral interests and surface acreage located in the Permian Basin for an aggregate $169 million in cash.

TPL acquired mineral interests across approximately 4,106 net royalty acres located in Culberson County, Texas. The acquired mineral interests overlap existing TPL royalty acreage in current and anticipated Drilling and Spacing Units (“DSU”), enhancing TPL’s net revenue interests in existing and future oil and gas wells. The acreage is leased to and operated by Coterra Energy (NYSE: CTRA). In addition, the acquired mineral interests overlap with TPL surface acreage.

The acquired surface asset spans approximately 4,120 acres in Martin County, Texas and is strategically located in the core of the Midland Basin. The asset generates numerous revenue streams across water supply, produced water disposal, and multiple other surface-related activities, including royalties from a solids waste landfill owned and operated by Waste Connections, Inc. (NYSE: WCN), and possesses significant additional commercial growth opportunities.

“Acquiring high-quality mineral interests in the northern Delaware Basin and strategic surface acreage in the Midland Basin will immediately contribute to TPL’s free cash flow,” said Tyler Glover, Chief Executive Officer of the Company. “The combined asset purchase price implies a greater than 13% 2025 free cash flow yield at current strip prices giving credit to only existing production and line-of-sight wells and opportunities. These bolt-on transactions, in addition to the cash flow currently generated, have excellent growth qualities commensurate with TPL’s legacy portfolio. By owning overlapping and nearby surface and water assets, we believe we can accelerate development and generate incremental value. Both assets were sourced through our industry and professional networks and were not part of a broad marketed process. These type of premium assets located within the core subregions of the Permian Basin represent the growth opportunities available to TPL that can provide a substantial incremental value driver to our legacy asset base.”

About Texas Pacific Land Corporation

Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 873,000 acres of land in West Texas, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provide revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fee payments for use of our land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and/or treated produced water, revenue from our oil and gas royalty interests, and revenues related to saltwater disposal on our land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits related to a variety of land uses including midstream infrastructure projects and hydrocarbon processing facilities.

Visit TPL at http://www.TexasPacific.com.

Linked to map

https://www.businesswire.com/news/home/20240827099522/en/

Texas Pacific Land Corporation Announces Special Dividend of $10 Per Share and Cash Balance Target (6/13/24)

DALLAS--(BUSINESS WIRE)--Texas Pacific Land Corporation (NYSE: TPL) (the “Company” or “TPL”) today announced that the Company’s Board of Directors approved a $10.00 per share special dividend. The special dividend will be payable on July 15, 2024 to stockholders of record at the close of business on July 1, 2024.

“With tailwinds of excellent business execution, supportive fundamentals, and a fortress balance sheet, we’re pleased to announce a special dividend, which is the largest in TPL’s history and represents a 50% increase compared to the most recent prior split-adjusted special dividend,” said Tyler Glover, Chief Executive Officer of the Company. “As we evaluate our current capital structure, capital allocation priorities, business fundamentals, and investment opportunities, we have set a target cash and cash equivalents (“cash”) balance of approximately $700 million. Above this targeted level, TPL will seek to deploy the majority of its free cash flow towards share repurchases and dividends.

“Even beyond the special dividend announced today, the Company still retains tremendous optionality to return additional capital to stockholders and to invest in attractive growth opportunities. We, along with our Board of Directors, will evaluate on a regular basis our cash balance target and capital allocation priorities as business fundamentals and macroeconomic conditions evolve. TPL continues to generate substantial free cash flow while maintaining a strong balance sheet, and we are well-positioned to drive stockholder value.”

About Texas Pacific Land Corporation

Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 868,000 acres of land in West Texas, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provide revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fee payments for use of our land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and/or treated produced water, revenue from our oil and gas royalty interests, and revenues related to saltwater disposal on our land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits related to a variety of land uses including midstream infrastructure projects and hydrocarbon processing facilities.

Visit TPL at http://www.TexasPacific.com.

https://www.businesswire.com/news/home/20240613283862/en/

Texas Pacific Land Corp. set to join the S&P SmallCap 600 effective prior to the open of trading on Monday, June 24, to coincide with the quarterly rebalance.

Excuse me, certain shareholders are responsible for most of those grotesque legal expenses.

Split will help with volatility/liquidity and the cheaper price per share should bring in some new investors. If management just focus on buybacks, growing the water biz, and avoiding grotesque legal fees, this can once again do very nicely with WTI nudging $80 per barrel. $750M cash on the books and minimal capex. Inflation is our friend with this gem.

It would have been done sooner if litigation hadn’t got in the way (and wasted shareholder money).

True, but more people can afford it now. Or will think they can.
I am curious as to why now?

Still one pizza. Just smaller slices.

Well that's nice.....I think

Texas Pacific Land Corporation Announces Three-for-One Stock Split (3/07/24)

Texas Pacific Land Corporation (NYSE: TPL) (the “Company”) today announced that its Board of Directors has approved a three-for-one stock split to be distributed to stockholders as a stock dividend. Each stockholder of record at the close of business on March 18, 2024, will receive two additional shares of common stock of the Company for each share held as of this record date. The new shares will be distributed on March 26, 2024. We expect that trading of the Company’s common stock will begin on a stock-split adjusted basis on March 27, 2024.

About Texas Pacific Land Corporation

Texas Pacific Land Corporation (NYSE: TPL) is one of the largest landowners in the State of Texas with approximately 868,000 acres of land in West Texas, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership allow revenue generation through the entire value chain of oil and gas development, including through fixed fee payments for use of our land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and treated produced water, revenue from our oil and gas royalty interests, and revenues related to saltwater disposal on our land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases, and temporary permits related to a variety of land uses including midstream infrastructure projects and hydrocarbon processing facilities.

https://www.businesswire.com/news/home/20240307485320/en/

Delaware Supreme Court Affirms Ruling in Favor of Texas Pacific Land Corporation on Litigation Related to Stockholders’ Agreement (2/27/24)

Texas Pacific Land Corporation (NYSE: TPL) (“TPL” or the “Company”) announced today that the Delaware Supreme Court (the “Supreme Court”) affirmed the December 1, 2023 ruling of the Delaware Court of Chancery (the “Court of Chancery”) in favor of TPL in the litigation between the Company and Horizon Kinetics LLC, Horizon Kinetics Asset Management LLC, SoftVest Advisors, LLC and SoftVest, L.P. (collectively, the “Investor Group”), in Horizon Kinetics, LLC, et al. v. Texas Pacific Land Corporation, (C.A. No. 478, 2023) (Del.).

As previously disclosed, on December 1, 2023, the Court of Chancery issued a post-trial decision ruling in favor of the Company. Specifically, the Court of Chancery ruled that under the terms of the June 2020 Stockholders’ Agreement between the Company and the Investor Group, at the Company’s 2022 annual meeting of stockholders, the Investor Group should have voted with the Board’s recommendation on Proposal 4, the Company’s proposal to increase the number of authorized shares of common stock, which has been deemed approved by stockholders. On February 26, 2024, the Supreme Court affirmed the Court of Chancery’s post-trial decision and final judgment in favor of the Company.

About Texas Pacific Land Corporation

Texas Pacific Land Corporation (NYSE: TPL) is one of the largest landowners in the State of Texas with approximately 868,000 acres of land in West Texas, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership allow revenue generation through the entire value chain of oil and gas development, including through fixed fee payments for use of our land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and treated produced water, revenue from our oil and gas royalty interests, and revenues related to saltwater disposal on our land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases, and temporary permits related to a variety of land uses including midstream infrastructure projects and hydrocarbon processing facilities.

https://www.businesswire.com/news/home/20240227753042/en/

court again rules AGAINST Murry Stahl, Horiozon and shareholders!

Delaware Court of Chancery Rules in Favor of Texas Pacific Land Corporation on Litigation Related to Stockholders’ Agreement (12/04/23)

DALLAS--(BUSINESS WIRE)--Texas Pacific Land Corporation (NYSE: TPL) (“TPL” or the “Company”) announced today that the Delaware Court of Chancery (the “Court”) has ruled in favor of TPL in the litigation between the Company and Horizon Kinetics LLC, Horizon Kinetics Asset Management LLC, SoftVest Advisors, LLC and SoftVest, L.P. (collectively, the “Investor Group”), in Texas Pacific Land Corp. v. Horizon Kinetics LLC, (C.A. No. 2022-1066-JTL) (Del. Ch.). On December 1, 2023, the Court ruled that the Investor Group should have voted with the Board’s recommendation on Proposal 4, the Company’s proposal to increase the number of authorized shares of common stock (the “Share Authorization Proposal”) at the 2022 Annual Meeting, under the terms of the June 2020 Stockholders’ Agreement with the Company (the “Stockholders’ Agreement”). The Court has deemed the Investor Group’s shares to have been voted in favor of the Share Authorization Proposal, which has been deemed approved by stockholders.

As previously disclosed, once a final order is entered and an amended charter is filed, the Company intends to use a portion of the newly authorized shares to affect a stock split of the Company’s common stock in the form of a stock dividend, and the Court has conditioned the Share Authorization Proposal on such a stock split. In addition, the Share Authorization Proposal increases the number of authorized, unissued shares of common stock.

Sidley Austin LLP and Abrams & Bayliss LLP represented TPL in the litigation.

https://www.businesswire.com/news/home/20231204126890/en/Delaware-Court-of-Chancery-Rules-in-Favor-of-Texas-Pacific-Land-Corporation-on-Litigation-Related-to-Stockholders%E2%80%99-Agreement