IMHO:
Expect continued good news leading up to and through November annual meeting that should show true and final transition as Horizon Kinetics and like minded shareholders ( including retail) with over 45% of shareholders vote against old Trustees who own zilch TPL shares.
A new era with Corp C structure now allowing energy mutual funds, ETFs and Indices to begin building positions. A mere 1% position from energy related Indices and ETFs under some calculations could seek to own 40%+ shares outstanding. A stock split NOT an issue with these PASSIVE investors insensitive to stock valuation.
Maybe the labor and capital intensive water business should be sold off to another oil services operator ( who might pay a high price to get this Permian Basin exposure) and pay TPL an retainer PLUS ROYALTIES.
I do not expect TPL management to buy other energy related businesses but to return to and maximize its ROYALTY business model. Have a corporate staff of under 20, increase regular and special cash dividends, add new leases at higher royalty rates that those written decades earlier, provide greater transparency on quarterly conference calls and start to attend institutional investment conferences.
Looking forward as we get past November annual meeting and approach 2022 as when energy analysts at Merrill Lynch, Morgan Stanley and Goldman Sachs may start to provide research reports and recommendations on TPL. Also look for Credit Suisse analysts to encourage overseas investors to accumulate TPL shares.
Predicting the hockey stick can continue to take TPL to $3,000 in next 3-5 years with nice dividends along the way.
Just one long term investor’s view.
