In a recent transaction, Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), has increased its stake in the company. The asset management firm purchased additional shares of Texas Pacific Land Corp, a company known for its oil royalty trading, on July 25, 2024.
The transaction involved the acquisition of 3 shares at a price of $800.99 per share, amounting to a total investment of $2,402. This buy transaction demonstrates Horizon Kinetics' continued confidence in the future prospects of Texas Pacific Land Corp.
Following this purchase, Horizon Kinetics Asset Management LLC's total ownership in Texas Pacific Land Corp has reached 1,085,080 shares. It's noteworthy that in February of the same year, Horizon Kinetics reported beneficial ownership of 1,271,975 shares, with Murray Stahl, the firm's key figure, holding a direct interest in 2,474 shares and an indirect interest in approximately 53,550 shares. However, it was noted that Mr. Stahl does not exercise investment discretion with respect to the securities of the issuer.
This latest buy transaction, signed by attorney-in-fact Jay Kesslen, reaffirms Horizon Kinetics' position as a ten percent owner of Texas Pacific Land Corp. The company, with its primary business in oil royalty trading, is incorporated in Delaware and operates out of Dallas, Texas.
Investors and market watchers often keep a close eye on the buying and selling activities of major shareholders as these can provide insights into the company's performance and the confidence that significant investors have in the management and future growth of the business.
In other recent news, Texas Pacific Land Corporation (TPL) disclosed strong Q1 2024 results, primarily driven by an impressive surge in water sales and produced water royalties. The company's consolidated revenues for the quarter reached $174 million, with adjusted EBITDA of $152 million and free cash flow of $115 million. Part of the revenue growth can be attributed to TPL's $20 million investment in a promising desalination method through fractional freezing, which has now advanced to the construction of a larger test facility capable of processing 10,000 barrels per day.
In addition to the financial results, TPL has created Transmissive Water Services to manage its desalination and water reuse efforts and is currently in commercial negotiations with upstream operators. Despite the technological progress, the company acknowledges the challenges in reducing treatment costs for its desalination technology and navigating regulatory hurdles.
Furthermore, TPL has formed a strategic acquisition committee tasked with evaluating new projects. However, the company anticipates that low natural gas prices may affect gas realizations in the upcoming second quarter. Despite these challenges, TPL's leadership remains optimistic about the future, expecting the strong performance in water sales to continue, given the positive feedback from potential partners and regulators. These developments highlight the company's commitment to innovation and value generation for shareholders.
InvestingPro Insights
As Horizon Kinetics Asset Management LLC bolsters its position in Texas Pacific Land Corp (NYSE:TPL), the InvestingPro data and tips offer a deeper look into the company's financial health and market performance. With a market capitalization of $18.75 billion, Texas Pacific Land Corp stands as a significant player in the oil royalty trading sector. The company's impressive gross profit margin of 94.18% for the last twelve months as of Q1 2024 suggests a strong ability to generate revenue over its cost of goods sold, a positive sign for investors like Horizon Kinetics.
Moreover, Texas Pacific Land Corp's ability to manage its debt is notable, as it holds more cash than debt on its balance sheet. This financial prudence is further underlined by the company's capacity to cover interest payments with its cash flows. These factors contribute to the firm's financial stability and may have influenced Horizon Kinetics' continued investment.
Despite a slight decrease in revenue growth by -1.06% over the last twelve months as of Q1 2024, the company's quarterly revenue growth stands at a robust 18.98%, illustrating a potential turnaround and a promising outlook for future earnings. Additionally, Texas Pacific Land Corp has consistently rewarded its shareholders with dividend payments for 11 consecutive years, with a dividend yield of 0.58% and a growth of 8.0% in the last twelve months as of Q1 2024.
Investors should note that the stock is currently trading at a high earnings multiple of 43.55 and near its 52-week high, with a price 97.72% of that peak. This could indicate a premium valuation, as reflected by a high price/book ratio of 16.8. For those seeking further analysis, there are 19 additional InvestingPro Tips available, offering a comprehensive assessment of Texas Pacific Land Corp's investment potential. Access these insights at https://www.investing.com/pro/TPL and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.