Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), recently acquired additional shares of the company. According to a filing with the Securities and Exchange Commission, the firm purchased 3 shares of Texas Pacific Land Corp common stock on November 20, 2024, at an average price of $1,426.83 per share. This transaction amounted to a total investment of $4,280.
Following this purchase, Horizon Kinetics Asset Management now holds 1,138,466 shares of Texas Pacific Land Corp. This acquisition is part of the firm's ongoing investment strategy in the oil royalty trading sector, where Texas Pacific Land Corp is a prominent player. The filing also notes that Murray Stahl, associated with Horizon Kinetics, has a direct interest in 2,474 shares and an indirect interest in approximately 53,550 shares, although he does not exercise investment discretion over the issuer's securities.
In other recent news, Texas Pacific Land Corporation has reported a series of notable developments. The company 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 in alignment with the newly adopted Third Amended and Restated Bylaws.
On the financial front, Texas Pacific Land Corporation has reported robust Q3 2024 earnings, featuring significant growth in oil and gas royalty production and water sales revenues. The company's consolidated revenues reached $174 million, while adjusted EBITDA was reported at $144 million. Notably, water sales revenues saw a 37% year-over-year increase, largely attributed to enhanced fracking techniques.
The company also announced a 37% increase in its quarterly dividend to $1.60 per share. In addition to these financial results, Texas Pacific Land Corporation has made strategic acquisitions in the Permian Basin and is on track to complete a desalination facility by mid-2025. These recent developments underscore the company's commitment to diversification and growth.
InvestingPro Insights
Texas Pacific Land Corp (NYSE:TPL) has been demonstrating impressive financial performance, aligning with Horizon Kinetics Asset Management's recent share acquisition. According to InvestingPro data, TPL boasts a market capitalization of $33.57 billion and has shown strong revenue growth of 11.18% over the last twelve months as of Q3 2024. This growth trajectory supports the company's position as a significant player in the oil royalty trading sector.
InvestingPro Tips highlight TPL's financial strength, noting that the company "holds more cash than debt on its balance sheet" and has "impressive gross profit margins." Indeed, the data shows a remarkable gross profit margin of 93.27% for the last twelve months, underscoring the company's operational efficiency in the oil and gas sector.
The stock's recent performance has been particularly noteworthy, with a 170.82% price total return over the past year and a 76% return in just the last three months. This aligns with another InvestingPro Tip indicating a "strong return over the last month." However, investors should note that the stock is currently trading near its 52-week high, with a price at 98.92% of its highest point over the past year.
While these metrics paint a picture of robust performance, it's worth noting that TPL is trading at a high P/E ratio of 74.88, which may suggest the stock is priced at a premium. This valuation factor is reflected in an InvestingPro Tip stating that the company is "trading at a high earnings multiple."
For investors seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for Texas Pacific Land Corp, providing a deeper insight into the company's financial health and market position.
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