Bloomberg (Nov 15, 2022): Permian Landowner Texas Pacific Faces Revolt Over Share Plan

https://news.bloomberglaw.com/esg/permian-landowner-texas-pacific-faces-revolt-over-share-plan

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By Mitchell Ferman

(Bloomberg) — Texas Pacific Land Corp., a major landowner in the oil-rich Permian Basin, faces a revolt from a group of shareholders over its proposal to have the power to issue additional shares.

Texas Pacific said Tuesday in a filing that four investors including Horizon Kinetics LLC — which holds a 21% stake, according to data compiled by Bloomberg — plan to vote against proposal No. 4 at the company’s upcoming shareholders meeting. The company said it believes the group is required to vote for the proposal under the terms of the stockholders’ agreement.

Horizon was among dissident investors that in 2019 pushed Texas Pacific to convert into a C-corporation. That campaign was successful, and the company agreed to adopt the new structure the following year.

Another shareholder, Gabi Gliksberg, managing partner of ATG Capital Management LLC, said Monday in a letter to Texas Pacific that he plans to vote against the same proposal.

To contact the reporter on this story:

Mitchell Ferman in Houston at mferman13@bloomberg.net