Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), recently acquired additional shares in the company. According to the latest SEC filing, the firm purchased 3 shares of common stock at a price of $1,726.14 per share, totaling $5,178. This transaction raises Horizon Kinetics' holdings to 1,138,475 shares. The purchase reflects the firm's continued investment interest in Texas Pacific Land Corp, a company involved in oil royalty trading. The acquisition was executed on November 25, 2024, with the filing made public on November 26, 2024.
In other recent news, Texas Pacific Land Corp has been making significant strides in its operations. The company reported strong Q3 2024 earnings, with consolidated revenues reaching $174 million and adjusted EBITDA standing at $144 million. This growth was driven by a substantial increase in oil and gas royalty production and water sales revenues, the latter seeing a 37% year-over-year increase. In addition, the company announced a 37% increase in its quarterly dividend to $1.60 per share.
In a recent development, Texas Pacific Land Corp is set to join the S&P 500, replacing Marathon Oil Corp (NYSE:MRO). This move comes as Marathon Oil is being acquired by ConocoPhillips (NYSE:COP). The changes in the index composition reflect the evolving market capitalizations of the involved companies and are part of the regular process of ensuring that the indices accurately represent the market segments they are designed to measure.
Furthermore, Texas Pacific Land Corporation 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. In line with this, the company's stockholders approved the executive compensation for named executive officers and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Lastly, the company is actively exploring non-oil and gas revenue opportunities, including solar, wind, data centers, and the beneficial reuse of produced water. 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.
InvestingPro Insights
Horizon Kinetics Asset Management's recent acquisition of Texas Pacific Land Corp (NYSE:TPL) shares aligns with several positive indicators highlighted by InvestingPro. TPL's impressive gross profit margins, which stand at 93.27% for the last twelve months as of Q3 2024, underscore the company's efficient operations in the oil royalty trading sector. This efficiency is further reflected in the company's strong operating income margin of 77.32% over the same period.
InvestingPro Tips suggest that TPL holds more cash than debt on its balance sheet, indicating a robust financial position. This aligns with the company's ability to maintain dividend payments for 11 consecutive years, a factor that may appeal to income-focused investors like Horizon Kinetics.
The stock's recent performance has been particularly noteworthy, with InvestingPro data showing a 46.99% price total return over the past month and an astounding 213.91% year-to-date return. These figures support the InvestingPro Tip indicating significant returns over various time frames.
However, investors should note that TPL is trading at a high P/E ratio of 80.08, which may suggest the stock is priced at a premium. This valuation metric, combined with the InvestingPro Tip that the stock's RSI suggests it's in overbought territory, could explain why Horizon Kinetics' recent purchase was relatively small in scale.
For investors seeking a more comprehensive analysis, InvestingPro offers 21 additional tips for TPL, providing a deeper understanding of the company's financial health and market position.
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