Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), has recently purchased additional shares of the company. The asset management firm acquired 3 shares of Texas Pacific Land Corp at a price of $788.88 per share, totaling approximately $2,366. This transaction was reported on August 7, 2024, according to a recent SEC filing.
The purchase by Horizon Kinetics further increases its substantial holdings in Texas Pacific Land Corp, which now amount to 1,085,107 shares immediately following the transaction. This information is in line with a footnote from the filing, which also references a Schedule 13D amendment filed earlier in the year, revealing that Horizon Kinetics Asset Management LLC had beneficial ownership of 1,271,975 shares. The filing also notes that Murray Stahl, who has a direct and indirect interest in a number of shares, does not exercise investment discretion with respect to the issuer's securities.
Investors often monitor the buying and selling activities of major shareholders like Horizon Kinetics, as these transactions can provide insights into the firm's perspective on the company's value and future prospects. The acquisition of shares by a significant investor typically signals a vote of confidence in the company's management and its strategic direction.
Texas Pacific Land Corp, with its trading symbol TPL, is known for its involvement in oil royalty trading. The company is incorporated in Delaware and has its business address in Dallas, Texas. The latest transactions by Horizon Kinetics serve as a notable development for those following the investment movements within the oil and real estate sectors.
In other recent news, Texas Pacific Land Corporation (TPL) reported strong first-quarter earnings for 2024, driven by significant growth in water sales and produced water royalties. The company's consolidated revenues reached $174 million, with an adjusted EBITDA of $152 million and a free cash flow of $115 million. A strategic capital investment of $20 million has been made towards the development of a cost-effective desalination technique through fractional freezing.
This research has led to the construction of a larger facility capable of processing 10,000 barrels per day. In line with these developments, TPL has formed Transmissive Water Services to manage desalination and water reuse efforts and is currently in commercial negotiations with upstream operators.
However, the company acknowledges the challenge of reducing treatment costs for its desalination technology and faces regulatory hurdles. Despite these challenges, TPL's water business has seen significant quarter-over-quarter revenue growth, driven by the demand for water-intensive simul-fracs. The company's strong balance sheet supports ongoing investment and value creation initiatives, even as it anticipates that low natural gas prices may affect gas realizations in the upcoming second quarter.
InvestingPro Insights
As Texas Pacific Land Corp (NYSE:TPL) continues to garner the attention of significant shareholders like Horizon Kinetics Asset Management LLC, several metrics and InvestingPro Tips highlight the company's financial health and market position. With a market capitalization of approximately $18.66 billion, Texas Pacific Land Corp stands out with a robust gross profit margin of 94.18% for the last twelve months as of Q1 2023, underscoring the company's efficiency in managing its cost of goods sold relative to its revenue.
Investors tracking TPL's performance will note its impressive return on assets, which reached 39.15% in the same period, indicating the company's ability to generate profit from its assets. Moreover, the company's commitment to shareholder returns is evident through its history of maintaining dividend payments for 11 consecutive years, with a recent dividend yield of 0.61% and a growth of 8.0% in its dividend over the last twelve months.
Among the InvestingPro Tips, two particularly stand out for Texas Pacific Land Corp. Firstly, the company holds more cash than debt on its balance sheet, providing it with a solid foundation for operational and strategic flexibility. Secondly, TPL's cash flows can sufficiently cover interest payments, which is a reassuring sign for investors concerned about the company's financial resilience.
For those interested in a deeper dive into Texas Pacific Land Corp's financials and market potential, there are additional InvestingPro Tips available. These tips can offer further insights into the company's valuation multiples, profitability, and analysts' predictions for the year, which may influence investment decisions. To explore these insights, investors can visit the dedicated InvestingPro page for Texas Pacific Land Corp at https://www.investing.com/pro/TPL, where several more tips are listed to guide their evaluation of the company's prospects.
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