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Horizon Kinetics asset management acquires Texas Pacific Land Corp shares for $4,358

Published 11/22/2024, 11:54 AM
TPL
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In a recent transaction, Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), purchased additional shares of the company. On November 21, the firm acquired three shares at a price of $1,452.90 each, totaling $4,358. This acquisition brings Horizon Kinetics' total ownership to 1,138,469 shares, as noted in their latest filing.

The firm, based in New York, is a notable investor in Texas Pacific Land Corp, which operates in the oil royalty sector. The purchase reflects Horizon Kinetics' continued interest in the company, although the transaction involved a relatively small number of shares.

In other recent news, Texas Pacific Land Corporation has reported significant growth in its Q3 2024 earnings. The company's consolidated revenues reached $174 million, and adjusted EBITDA was reported at $144 million. Texas Pacific Land Corporation saw a 37% year-over-year increase in water sales revenues, largely due to enhanced fracking techniques, and announced a 37% increase in its quarterly dividend to $1.60 per share. In addition, the company has made significant amendments to its corporate governance structure, which now require a special meeting to be called upon the written request of stockholders owning at least 25% of the outstanding common stock. These are among the recent developments for the company, which also include strategic acquisitions in the Permian Basin and a record increase in oil and gas royalty production. Looking ahead, Texas Pacific Land Corporation is on track to complete a desalination facility by mid-2025 and is exploring non-oil and gas revenue opportunities. Despite a decline in realized oil prices and a drop in natural gas prices, the company maintains a strong balance sheet with zero debt.

InvestingPro Insights

Texas Pacific Land Corp (NYSE:TPL) has been demonstrating impressive financial performance, as reflected in recent InvestingPro data. The company boasts a market capitalization of $38.35 billion, indicating its significant presence in the oil royalty sector. TPL's revenue for the last twelve months as of Q3 2024 stood at $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 maintains an impressive gross profit margin of 93.27%, underscoring its operational efficiency. This aligns with an InvestingPro Tip highlighting TPL's "impressive gross profit margins."

Investors should note that TPL's stock has shown remarkable performance, with a 182.83% total return over the past year. This strong performance is further emphasized by another InvestingPro Tip, which indicates that the stock is "trading near its 52-week high."

While these metrics paint a positive picture, it's important for investors to consider the valuation context. TPL currently trades at a P/E ratio of 84.74, which some may consider high. This is reflected in an InvestingPro Tip suggesting that the company is "trading at a high earnings multiple."

For those interested in a more comprehensive analysis, InvestingPro offers 21 additional tips for Texas Pacific Land Corp, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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