Chris Steddum, the Chief Financial Officer of Texas Pacific Land Corp (NYSE:TPL), recently sold 350 shares of the company's common stock. The transaction, which took place on November 14, was executed at a price of $1,340 per share, totaling approximately $469,000. Following this sale, Steddum holds 1,672 shares of the company directly.
In addition to the sale of common stock, the filing details several holdings in restricted stock units (RSUs). These RSUs, which have a value equivalent to one share of common stock each, are set to vest in stages over the next few years. Specifically, 516 RSUs are scheduled to vest on February 11, 2025, while other batches have vesting dates extending into 2027.
This transaction and the reported RSU holdings come after a 3-for-1 stock split that took effect on March 26, 2024, reflecting the company's efforts to manage its stock structure effectively.
In other recent news, Texas Pacific Land Corporation reported significant changes to its corporate governance structure, including amendments to its bylaws and changes to special meeting rules. The company also announced robust Q3 2024 earnings, revealing substantial growth in oil and gas royalty production and water sales revenues. The consolidated revenues reached $174 million, and adjusted EBITDA was reported at $144 million. Despite a decrease in realized oil prices and natural gas prices, the company maintains a strong balance sheet with zero debt.
In addition, Texas Pacific Land Corporation has seen a 37% increase in its quarterly dividend to $1.60 per share. The company has also made strategic acquisitions in the Permian Basin, contributing to a record increase in oil and gas royalty production. Looking ahead, the company plans to complete a desalination facility by mid-2025 and is exploring non-oil and gas revenue opportunities. These recent developments underscore the company's commitment to diversification and growth.
InvestingPro Insights
Texas Pacific Land Corp (NYSE:TPL) has been experiencing significant growth and financial strength, as evidenced by recent InvestingPro data. The company's market capitalization stands at an impressive $31.15 billion, reflecting its substantial presence in the market. TPL's revenue for the last twelve months as of Q3 2024 reached $686.7 million, with a notable revenue growth of 11.18% over the same period.
One of the most striking aspects of TPL's financial profile is its exceptional profitability. The company boasts an impressive gross profit margin of 93.27% for the last twelve months as of Q3 2024, which aligns with an InvestingPro Tip highlighting TPL's "impressive gross profit margins." This exceptional margin demonstrates the company's ability to efficiently convert revenue into profit.
The stock's recent performance has been particularly strong, with a 6-month price total return of 130.16% and a year-to-date return of 164.74%. This aligns with another InvestingPro Tip noting a "high return over the last year." However, investors should be aware that the stock is trading near its 52-week high, with the current price at 95.79% of that peak.
It's worth noting that TPL's P/E ratio stands at 69.35, which is considered high and corresponds to an InvestingPro Tip indicating that the company is "trading at a high earnings multiple." This valuation metric suggests that investors are placing a premium on the stock, possibly due to its strong growth prospects and financial performance.
For investors seeking more comprehensive analysis, InvestingPro offers 20 additional tips for TPL, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable given the recent stock sale by the CFO and the company's recent stock split, helping investors contextualize these events within TPL's broader financial picture.
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