On November 14, Horizon Kinetics Asset Management LLC and its director, Murray Stahl, reported a series of stock purchases in Texas Pacific Land Corp (NYSE:TPL), totaling $16,425. The shares were acquired at prices ranging from $1,350.16 to $1,374.99 per share.
The transactions were part of a planned acquisition strategy, as indicated by the Rule 10b5-1 plan adopted on May 14, 2024. Following these purchases, the reporting parties hold significant stakes in the company, with shares owned across various funds and personal accounts.
These recent transactions highlight Horizon Kinetics' continued investment in Texas Pacific Land Corp, an oil royalty company based in Dallas, Texas.
In other recent news, Texas Pacific Land Corporation has reported substantial growth in its Q3 2024 earnings, with consolidated revenues reaching $174 million and adjusted EBITDA at $144 million. The company's water sales revenues saw a 37% year-over-year increase, largely attributed to improved fracking techniques. In addition, Texas Pacific Land announced a 37% increase in its quarterly dividend to $1.60 per share.
In terms of corporate governance, the company has amended its bylaws, requiring a special meeting to be called upon the written request of stockholders owning at least 25% of the outstanding common stock. This aligns with the newly adopted Third Amended and Restated Bylaws and is dependent on the stockholders adhering to specific procedures outlined in these bylaws.
These recent developments also include strategic acquisitions in the Permian Basin and a record increase in oil and gas royalty production. Despite an 8% decline in realized oil prices and a 65% drop in natural gas prices, Texas Pacific Land maintains a strong balance sheet with zero debt. Looking forward, the company 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.
InvestingPro Insights
The recent stock purchases by Horizon Kinetics Asset Management LLC and Murray Stahl in Texas Pacific Land Corp (NYSE:TPL) align with the company's strong financial performance and market position. According to InvestingPro data, TPL boasts a market capitalization of $31.23 billion and has demonstrated impressive revenue growth of 11.18% over the last twelve months as of Q3 2024.
TPL's financial strength is further underscored by its remarkable gross profit margin of 93.27%, reflecting the company's efficient operations in the oil royalty sector. This aligns with an InvestingPro Tip highlighting TPL's "impressive gross profit margins."
However, investors should note that TPL is trading at a high P/E ratio of 69.43, which suggests the stock may be priced at a premium relative to its earnings. This is corroborated by another InvestingPro Tip indicating that TPL is "trading at a high earnings multiple."
For those seeking a more comprehensive analysis, InvestingPro offers 20 additional tips on TPL, providing deeper insights into the company's financial health and market position. These tips can be particularly valuable for investors looking to understand the full picture behind Horizon Kinetics' recent stock acquisitions.
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