State of the Business
TPL’s tremendous momentum
The Trust benefits from a period of historic growth in Texas’ Permian Basin, and its Trustees and management team have led the Trust through this period with prudent stewardship of capital and core assets. As a result of thoughtful, shareholder-focused management, the Trust has created value and shareholders continue to capture that upside.
In recent years, the Trust has recruited experienced professionals to lead the business and oversee its day-to-day operations. CEO Tyler Glover and CFO Robert J. Packer bring substantial experience and strong market knowledge that have resulted in significant value creation.
TPL is looking ahead to the future
As its business continues to evolve, the Trustees have worked to ensure the Trust has the right structure in place for effective management oversight and governance. This includes, when appropriate, making adjustments to ensure that the Trust is geared for value creation.
The Trust’s governance structure recognizes the need for long-term stewardship to maximize its value, and shareholders have benefited significantly from this long-term perspective. The Trust’s governing structure has served shareholders well for over a century. Trustees with a shorter-term focus might be incentivized to sell more land or the Trust’s newly developed water business for an immediate cash payout, depriving shareholders of the tremendous future upside. In other words, its structure is reflective of the Trust’s longstanding primary mission: to return cash to shareholders for years and years to come.
As it always has, the Trust regularly considers any changes that may be in the best interests of holders for the long-term.
However, a dissident group is now waging a proxy contest to advance a nomination that risks derailing TPL’s progress and jeopardizing its future long-term value. For example, this group wants to pursue potentially drastic changes to the water business at a time when it is well positioned to meet high demand for water offerings in the constrained Permian Basin. Vote FOR General Don Cook to support the Trustees’ strategy for long-term value creation.