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Shale Oil Powerhouse Sues Its Own Investors After 4,000% Stock Surge

  • Dissenting Texas Pacific holders oppose issuing stock issuance
  • Land bank wants judge to force Horizon, SoftVest to yield
Stacks of steel pipes at an oil well drilling site in Andrews, Texas.

Stacks of steel pipes at an oil well drilling site in Andrews, Texas.

Photographer: Jordan Vonderhaar/Bloomberg
Updated on

One of the biggest landowners in Texas oil country doubled returns to investors in 2022. It’s starting the new year by suing some of them as a dispute over the future direction of the company spills into a Delaware court.

Texas Pacific Land Corp., a land bank created out of a 19th-century railroad bankruptcy, shelved plans to issue new stock last month after shareholders balked at the implicit dilution of their holdings and the prospect of executives inexperienced in dealmaking looking for acquisitions.