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Horizon Kinetics asset management buys Texas Pacific Land shares for $1,180

Published 16/12/2024, 16:54
Horizon Kinetics asset management buys Texas Pacific Land shares for $1,180
TPL
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Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), reported a recent acquisition of common stock. The firm purchased 1 share on December 13, 2024, at a price of $1,180.67 per share, bringing the total transaction value to $1,180. Following this purchase, Horizon Kinetics holds a total of 1,138,511 shares in the company valued at approximately $1.4 billion based on current market prices. TPL, with its impressive 93% gross profit margins and market capitalization of $28 billion, has delivered a remarkable 133% return year-to-date despite a recent 9.7% decline over the past week. According to InvestingPro analysis, the company currently appears overvalued relative to its Fair Value.

This transaction was disclosed in a filing with the Securities and Exchange Commission, indicating Horizon Kinetics' continued investment in Texas Pacific Land Corp, a company known for its oil royalty trading activities. The company maintains a strong financial position with a "GREAT" overall health score and has maintained dividend payments for 11 consecutive years. Discover 16 additional key insights about TPL with InvestingPro, including detailed valuation metrics and growth forecasts.

In other recent news, Texas Pacific Land Corp has been making significant strides in its operations. The company recently reported strong Q3 2024 earnings, with consolidated revenues reaching $174 million and adjusted EBITDA at $144 million. This growth is largely attributed to a boost in oil and gas royalty production and a 37% increase in water sales revenues. The company also announced a 37% increase in its quarterly dividend to $1.60 per share.

In addition to its financial performance, Texas Pacific Land Corp is set to join the S&P 500, replacing Marathon Oil Corp (NYSE:MRO). This move comes as Marathon Oil is being acquired by ConocoPhillips (NYSE:COP). Texas Pacific Land Corp's rise to the S&P 500 reflects its evolving market capitalization.

Furthermore, Texas Pacific Land Corp has made significant amendments to its corporate governance structure, requiring a special meeting to be called upon the written request of stockholders owning at least 25% of the outstanding common stock. This change is part of the company's Third Amended and Restated Bylaws.

Looking ahead, Texas Pacific Land Corp is on track to complete a desalination facility by mid-2025 and is exploring non-oil and gas revenue opportunities, including solar, wind, data centers, and the beneficial reuse of produced water. Despite an 8% decline in realized oil prices and a 65% drop in natural gas prices, the company maintains a strong balance sheet with zero debt. These are recent developments for the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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