An Open Letter to the TPL Board

Dear Members of the Board of Directors:

There have been several notable events at Texas Pacific Land Corporation (TPL) in the last year, and I thought it would be appropriate timing to bring up some thoughts for your consideration in advance of preparing for your 2026 annual meeting of the shareholders.

The first event was the recent passing of board member Murray Stahl. Murray was a fantastic human being. I will miss listening to his quarterly update calls and speaking with him. Murray’s presence on the board provided comfort to several long-term shareholders of TPL. They appreciated the shareholder-focused governance he brought as well as his strategic relationships, as he likely played a major role in TPL’s investment into Bolt Data and Energy. His absence on the board is more acutely felt given Eric Oliver’s earlier decision to not stand for reelection. While Murray can never be truly replaced on the board, I would suggest that he be replaced with two new board members. The first new board member should come from the ranks of the large shareholders or at least have the support of the large shareholders. Additionally, they should not be restricted by shareholder, or similar, agreements which would limit their ability to act according to their conscience. The second new board member should have deep expertise in data centers.

While finding a comparable company to TPL is a difficult task, there are two businesses that are quite similar. The first one is the publicly traded LandBridge. The second one is the, likely, soon-to-be publicly traded EagleRock. Although, one major difference between TPL and its comparable companies, is TPL’s high exposure to mineral royalties and LandBridge’s low-exposure and EagleRock’s no exposure. Pure-play royalty companies often trade at high-single-digit to low-double-digit EBITDA multiples. This makes sense, as once a mineral is extracted and the royalty is paid, then that mineral is gone forever. Despite mineral royalties being the least valuable part of TPL’s business, the company has spent nearly one billion dollars of shareholder capital acquiring more mineral royalties. I would urge you to spend shareholder capital on more highly valued parts of TPL’s business. Should you and management feel inclined to continue this use of capital, then I would urge you to instruct management to continually publish the relevant metrics of these investments. TPL’s competitor, and AMI partner LandBridge, does this with their land acquisitions. The slides from LandBridge’s recent analyst day provide a good example of how this can be done.

I appreciate your stewardship of TPL, and I look forward to seeing some new additions to the board.

Sincerely,

A TPL Shareholder