In a recent filing with the Securities and Exchange Commission, Texas Pacific Land Corp (NYSE:TPL) reported a series of stock acquisitions by Horizon Kinetics Asset Management LLC, totaling $15,203. The acquisitions, which occurred on November 7, 2024, involved the purchase of shares at prices ranging from $1,261.58 to $1,283.19 per share.
The transactions were executed under a Rule 10b5-1 plan adopted earlier this year, as noted in the filing. Murray Stahl, a director at Texas Pacific Land and a key figure at Horizon Kinetics, indirectly acquired shares through various funds and partnerships associated with the asset management firm. This activity highlights ongoing investment interest in Texas Pacific Land, a company known for its oil royalty and real estate operations.
Horizon Kinetics Asset Management LLC, which holds a significant stake in Texas Pacific Land, continues to manage these investments, although Stahl does not participate in the investment decisions regarding these securities. The acquisitions contribute to the firm's extensive portfolio, reflecting its strategic positioning within the oil and real estate sectors.
In other recent news, Texas Pacific Land Corporation (TPL) has reported strong Q3 2024 financial results, showing significant growth in oil and gas royalty production and produced water royalty volumes. The company's consolidated revenues reached $174 million, with an adjusted EBITDA of $144 million. TPL's water sales revenues saw a 37% increase year-over-year, and the company announced a 37% increase in its quarterly dividend to $1.60 per share.
Additionally, TPL's oil and gas royalty production rose by 29%, reaching a record 28,300 barrels of oil equivalent per day, and produced water royalty volumes increased by 46%. The company also announced strategic acquisitions in the Permian Basin, expected to boost production significantly.
However, the company faced challenges with an 8% decline in realized oil prices and a 65% drop in natural gas prices. Despite these challenges, TPL maintains a strong balance sheet with zero debt. Looking to the future, TPL 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.
InvestingPro Insights
Texas Pacific Land Corp's recent stock acquisitions by Horizon Kinetics Asset Management LLC align with the company's strong financial performance and market position. According to InvestingPro data, TPL boasts a market capitalization of $31.13 billion, reflecting its substantial presence in the oil royalty and real estate sectors.
The company's financial health is underscored by its impressive gross profit margin of 93.26% for the last twelve months as of Q3 2024, indicating highly efficient operations. This aligns with an InvestingPro Tip highlighting TPL's "impressive gross profit margins." Additionally, TPL's revenue growth of 11.18% over the same period demonstrates the company's ability to expand its business in a competitive market.
Investors should note that TPL is trading at a high P/E ratio of 70.64, which suggests that the market has high expectations for future growth. This is further supported by an InvestingPro Tip indicating that TPL is "trading at a high earnings multiple." While this could signal investor confidence, it also implies that the stock may be priced at a premium.
For those interested in a deeper analysis, InvestingPro offers 20 additional tips on Texas Pacific Land Corp, providing a comprehensive view of the company's financial health and market position. These insights can be valuable for investors looking to make informed decisions in light of recent insider acquisitions and market trends.
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