Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), has recently increased its stake in the company by purchasing additional shares. On June 4, 2024, Horizon Kinetics bought 3 shares of Texas Pacific Land Corp at a price of $585.56 per share, amounting to a total investment of $1,756.
This transaction has contributed to Horizon Kinetics Asset Management's already substantial holding in the company, which, as of February 28, 2024, included beneficial ownership of 1,271,975 shares. It is important to note that Murray Stahl, associated with Horizon Kinetics, has a direct interest in 2,474 shares and an indirect interest in approximately 53,550 shares. However, Mr. Stahl does not exercise investment discretion with respect to the issuer's securities.
Texas Pacific Land Corp, trading under the ticker symbol NYSE:TPL, operates in the oil royalty traders industry and has a substantial real estate and construction presence. The company's shares are traded on the New York Stock Exchange, and it is incorporated in the state of Delaware.
The details of the transaction were officially filed on June 5, 2024, and the purchase was made directly by Horizon Kinetics Asset Management, emphasizing the firm's ongoing commitment to Texas Pacific Land Corp as a key asset in its investment portfolio.
In other recent news, Texas Pacific Land Corporation (TPL) has reported strong first-quarter earnings for 2024, driven primarily by significant growth in water sales and produced water royalties. The company's consolidated revenues for Q1 2024 reached $174 million, with adjusted EBITDA of $152 million and free cash flow of $115 million. TPL's strategic $20 million capital investment in developing a cost-effective desalination method through fractional freezing has moved from prototype to a larger facility capable of processing 10,000 barrels per day.
These are part of the recent developments at TPL, including the creation of Transmissive Water Services to manage desalination and water reuse efforts. The company's strong performance in water sales is expected to continue, with positive feedback from potential partners and regulators. However, TPL acknowledges the challenge of reducing treatment costs for its desalination technology and the regulatory hurdles that come with it.
In other company news, TPL is working on reducing operational costs and has formed a strategic acquisition committee to evaluate new projects. Despite technological advancements, the company has yet to establish a firm commercial structure for its desalination and water reuse services. TPL maintains a strong balance sheet, which supports ongoing investment and value creation initiatives.
InvestingPro Insights
As Texas Pacific Land Corp (NYSE:TPL) continues to attract the interest of significant shareholders like Horizon Kinetics Asset Management, it's essential to delve into the financial metrics that may be influencing these investment decisions. According to the latest data from InvestingPro, Texas Pacific Land Corp holds a market capitalization of $13.51 billion, with a notable P/E ratio of 31.49. This valuation reflects the company’s strong earnings potential, even though it trades at a high earnings multiple, which is a point of interest for investors looking for growth opportunities.
The company's impressive gross profit margin stands at 94.18% for the last twelve months as of Q1 2024, an indicator of its efficiency in controlling costs relative to its revenue. Furthermore, Texas Pacific Land Corp's ability to cover interest payments is robust, with cash flows that can sufficiently handle its financial obligations. This is a critical factor for investors who prioritize financial stability in their portfolio selections.
For investors seeking both stability and growth, Texas Pacific Land Corp's recent performance provides a compelling narrative. The company has experienced a strong return over the last three months, with a 15.91% price total return, and has maintained dividend payments for 11 consecutive years, showcasing its commitment to shareholder returns. The dividend yield currently stands at a modest 0.8%, with a growth of 8.0% in the last twelve months as of Q1 2024, reflecting a balance of income and reinvestment potential.
For those interested in further insights, InvestingPro offers additional tips on Texas Pacific Land Corp, which can be accessed at https://www.investing.com/pro/TPL. These tips include analysis on the company's liquidity, valuation multiples, and stock performance trends. There are currently 14 additional InvestingPro Tips available that could provide deeper understanding and aid in investment decisions. To access these tips and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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