Horizon Kinetics Asset Management LLC, a significant stakeholder in Texas Pacific Land Corp (NYSE:TPL), recently acquired additional shares in the company. According to a filing with the Securities and Exchange Commission, the asset management firm purchased three shares of common stock on December 3, 2024, at a price of $1,536.54 per share. This transaction amounts to a total investment of approximately $4,609. The stock, which has delivered an impressive year-to-date return of over 205%, currently trades at $1,379.80. InvestingPro analysis indicates the company is trading above its Fair Value, with a notable P/E ratio of 72.6x and an exceptional gross profit margin of 93%.
Following this acquisition, Horizon Kinetics now holds 1,138,490 shares directly. This transaction reflects the firm's ongoing interest in Texas Pacific Land Corp, a company involved in oil royalty trading. The filing notes that Horizon Kinetics is a ten percent owner of the company, which has a current market capitalization of $31.7 billion. InvestingPro subscribers can access 18 additional investment tips and a comprehensive Pro Research Report for deeper insights into TPL's valuation and growth prospects.
In other recent news, Texas Pacific Land Corp. has been making significant strides in various aspects of its operations. The company reported robust Q3 2024 earnings, with consolidated revenues reaching $174 million and an adjusted EBITDA of $144 million. This growth was largely driven by a notable increase in oil and gas royalty production and a 37% year-over-year rise in water sales revenues. Furthermore, the company announced a 37% increase in its quarterly dividend to $1.60 per share.
In addition to its financial performance, Texas Pacific Land Corp. has also been active in its corporate governance. The company recently 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 change aligns with the newly adopted Third Amended and Restated Bylaws.
Moreover, Texas Pacific Land Corp. is set to join the S&P 500, replacing Marathon Oil Corp (NYSE:MRO). This change comes as Marathon Oil is being acquired by ConocoPhillips (NYSE:COP). The adjustments in the indices reflect the evolving market capitalizations of the involved companies, with Texas Pacific Land now representing the large-cap market space more accurately.
Despite an 8% decline in realized oil prices and a 65% drop in natural gas prices, Texas Pacific Land Corp. maintains a strong balance sheet with zero debt and is exploring non-oil and gas revenue opportunities, including solar, wind, data centers, and the beneficial reuse of produced water.
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