In a recent series of transactions reported to the Securities and Exchange Commission (SEC), Horizon Kinetics Asset Management LLC and director Murray Stahl have acquired shares of Texas Pacific Land Corp (NYSE:TPL) amounting to a total value of $13,183. The purchases were made on October 25, 2024, with prices ranging from $1,095.35 to $1,099.70 per share.
The transactions involved the acquisition of multiple shares of common stock by various entities associated with Horizon Kinetics. These entities include Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity Fund LP, Horizon Common Inc, and Polestar (NASDAQ:PSNY) Offshore Fund Ltd, among others. The shares purchased were part of a pre-established trading plan under Rule 10b5-1, adopted on May 14, 2024.
As detailed in the filing, Murray Stahl, who serves as a director of Texas Pacific Land Corp, does not exercise investment discretion regarding the securities of the issuer. The transactions are part of a broader strategy managed by Horizon Kinetics Asset Management LLC, where Stahl holds positions as Chairman, Chief Executive Officer, and Chief Investment Officer.
This latest filing highlights the continued interest and investment in Texas Pacific Land Corp by Horizon Kinetics and its affiliates.
In other recent news, Texas Pacific Land Corporation announced record-breaking performance in its Water Services and Operations segment in its Q2 2024 financial results. The company reported consolidated revenues of approximately $172 million, a 14% year-over-year growth, and diluted earnings per share of $4.98. The water segment achieved corporate records in various areas, including sales revenues, volumes, and net income. The oil and gas royalty production also increased slightly, with the company focusing on expanding its assets in the Permian Basin.
Simultaneously, the Public Utility Commission of Texas has shortlisted 17 gas-fired power plant projects for possible funding from the $5.38 billion Texas Energy Fund. Companies like NRG Energy (NYSE:NRG), Vistra, Constellation, NextEra, and GE Vernova are among the applicants. The projects that advanced to the next phase represent nearly 10,000 megawatts in power generation capacity.
These are recent developments that underline the ongoing efforts by both the state of Texas and companies like Texas Pacific Land Corporation to bolster energy infrastructure and performance.
InvestingPro Insights
The recent share acquisitions by Horizon Kinetics Asset Management LLC and director Murray Stahl in Texas Pacific Land Corp (NYSE:TPL) align with several positive indicators highlighted by InvestingPro data and tips.
TPL's impressive financial health is evident from its strong balance sheet, with InvestingPro Tips noting that the company "holds more cash than debt" and "liquid assets exceed short term obligations." This financial stability may have influenced the decision to increase holdings in the company.
The company's operational efficiency is remarkable, with an InvestingPro Tip highlighting TPL's "impressive gross profit margins." This is further supported by the data showing a gross profit margin of 93.61% for the last twelve months as of Q2 2024, indicating exceptional profitability in its core operations.
However, investors should be aware that TPL is currently trading at premium valuations. InvestingPro Tips caution that the stock is "trading at a high earnings multiple" and "at a high P/E ratio relative to near-term earnings growth." The current P/E ratio stands at 55.42, which is significantly above average for most industries.
Despite the high valuation, TPL has demonstrated strong market performance. The stock has shown a "strong return over the last month" and is "trading near 52-week high," with a remarkable year-to-date price total return of 113.55% as of the latest data.
For investors seeking more comprehensive analysis, InvestingPro offers 20 additional tips for TPL, providing a deeper understanding of the company's financial position and market dynamics.
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