Horizon Kinetics Asset Management LLC has made a new purchase of Texas Pacific Land Corp (NYSE:TPL) stock, according to a recent filing with the Securities and Exchange Commission. The asset management firm bought 1 share of common stock at a price of $785.38 on July 11, 2024.
This transaction increases Horizon Kinetics Asset Management's holdings in Texas Pacific Land Corp to a total of 1,085,050 shares. The acquisition is part of the firm's investment strategy in the oil royalty trading company, which has been a subject of interest for investors looking for exposure to the energy sector.
The investment firm, which is known for its significant stakes in various companies, has previously disclosed beneficial ownership of 1,271,975 shares, as mentioned in an amendment to its Schedule 13D filed on February 28, 2024. Additionally, the disclosure highlighted the direct and indirect interests of Murray Stahl, who has a direct interest in 2,474 shares and an indirect interest in approximately 53,550 shares of Texas Pacific Land Corp. It is important to note that Mr. Stahl does not exercise investment discretion with respect to the issuer's securities.
Investors and market watchers often keep a close eye on such purchases by asset management firms as they may signal confidence in the company's future performance or strategic value. The single-share transaction, while seemingly minor, contributes to the ongoing adjustments in Horizon Kinetics Asset Management's investment portfolio.
For further details on Horizon Kinetics Asset Management's holdings and investment activities, interested parties can refer to the full filing available through the SEC's database.
In other recent news, Texas Pacific Land Corporation (TPL) reported a strong first quarter for 2024, with growth in water sales and produced water royalties driving the results. TPL's Q1 consolidated revenues reached $174 million, with adjusted EBITDA of $152 million and free cash flow of $115 million. The company has also invested $20 million in developing a cost-effective desalination method through fractional freezing, which has now advanced to the construction of a larger test facility.
In addition, TPL has formed a new entity, Transmissive Water Services, to manage its desalination and water reuse efforts, and is currently in commercial negotiations with upstream operators. Despite challenges in reducing treatment costs and regulatory hurdles, the company maintains a strong balance sheet, supporting ongoing investments and value creation initiatives.
However, TPL anticipates that low natural gas prices may impact gas realizations in the upcoming second quarter. Furthermore, while the company has made significant progress with its desalination technology, it has yet to establish a firm commercial structure for its desalination and water reuse services. These are some of the recent developments in TPL's business operations.
InvestingPro Insights
In light of Horizon Kinetics Asset Management LLC's recent acquisition of Texas Pacific Land Corp (NYSE:TPL) stock, examining real-time data and insights from InvestingPro can provide a deeper understanding of the company's financial health and market performance. Texas Pacific Land Corp boasts an impressive Gross Profit Margin of 94.18% for the last twelve months as of Q1 2024, reflecting the company's efficiency and its ability to retain a significant portion of revenue after the cost of goods sold has been accounted for.
The company's Market Cap stands at $18.27B USD, positioning it as a substantial player in its sector. Additionally, investors should note that Texas Pacific Land Corp's stock is trading at a high Price / Book multiple of 16.28, which may suggest a premium valuation compared to its tangible book value. This metric can be particularly relevant for investors assessing the company's stock price in relation to its net asset value.
Among the various InvestingPro Tips available, two are particularly noteworthy for potential investors. First, Texas Pacific Land Corp holds more cash than debt on its balance sheet, providing a solid financial foundation and flexibility for future growth or economic downturns. Secondly, the company has maintained dividend payments for 11 consecutive years, indicating a commitment to returning value to shareholders consistently over time. For those interested in further analysis and tips, there are 19 additional InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/TPL. Investors can also take advantage of the exclusive offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.