Horizon Kinetics Asset Management LLC, a significant stakeholder in Texas Pacific Land Corp (NYSE:TPL), has recently increased its holdings in the company. According to a recent SEC filing, the firm purchased three shares of common stock on November 26, 2024, at a price of $1,556.11 per share, bringing the total transaction value to $4,668.
Following this acquisition, Horizon Kinetics now holds a total of 1,138,478 shares in Texas Pacific Land, as indicated in the filing. This transaction reflects the firm's ongoing investment strategy and interest in the company, although the filing notes that Murray Stahl, associated with Horizon Kinetics, does not exercise investment discretion over the securities of the issuer.
In other recent news, Texas Pacific Land Corp has reported significant developments. The company reported a robust Q3 2024, with consolidated revenues reaching $174 million and adjusted EBITDA at $144 million. The earnings report highlighted a 37% year-over-year increase in water sales revenues and a 37% increase in its quarterly dividend to $1.60 per share.
In addition, Texas Pacific Land is set to join the S&P 500, replacing Marathon Oil Corp (NYSE:MRO), a move reflecting the company's evolving market capitalization. This change is part of a larger reshuffling among S&P indices, with Mueller Industries Inc (NYSE:MLI). moving up to the S&P MidCap 400 and Atlas (NYSE:ATCO) Energy Solutions Inc. filling the vacancy in the S&P SmallCap 600.
Furthermore, Texas Pacific Land has made significant amendments to its corporate governance structure, including a change in meeting rules. The amendments now require a special meeting to be called upon the written request of stockholders owning at least 25% of the outstanding common stock.
In the meantime, the company is on track to complete a desalination facility by mid-2025 and is exploring non-oil and gas revenue opportunities, including solar, wind, data centers, and the beneficial reuse of produced water. These recent developments underscore Texas Pacific Land's commitment to growth and diversification.
InvestingPro Insights
Texas Pacific Land Corp (NYSE:TPL) continues to attract investor attention, as evidenced by Horizon Kinetics Asset Management LLC's recent share acquisition. This move aligns with TPL's impressive financial performance and market position.
According to InvestingPro data, TPL boasts a market capitalization of $37.61 billion, reflecting its significant presence in the market. The company's financial strength is underscored by its robust gross profit margin of 93.27% for the last twelve months as of Q3 2024, showcasing its operational efficiency.
InvestingPro Tips highlight TPL's strong financial health, noting that the company "holds more cash than debt on its balance sheet" and "cash flows can sufficiently cover interest payments." These factors likely contribute to the company's attractiveness to investors like Horizon Kinetics.
Furthermore, TPL has demonstrated remarkable market performance, with a staggering 205.7% year-to-date price total return as of the latest data. This exceptional growth is complemented by the company's consistent dividend payments, which it has maintained for 11 consecutive years, as noted in another InvestingPro Tip.
For investors seeking a deeper understanding of TPL's potential, InvestingPro offers 19 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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