In a recent transaction, Horizon Kinetics Asset Management LLC disclosed the purchase of shares in Texas Pacific Land Corp (NYSE:TPL), a $26 billion market cap company with impressive 93% gross profit margins according to InvestingPro data. The asset management firm acquired a single share of common stock at a price of $1,134.87, bringing the total transaction value to $1,134. Following this transaction, Horizon Kinetics now holds a direct ownership of 1,138,400 shares in the company.
This transaction is part of Horizon Kinetics' ongoing investment activities, as noted in their recent Schedule 13D amendment, which reported beneficial ownership of 3,578,173 shares. The firm's investment comes as TPL demonstrates strong financial health, with 11 consecutive years of dividend payments and a remarkable 116% total return over the past year. The firm, under the leadership of Murray Stahl, maintains a significant presence in Texas Pacific Land Corp, although Mr. Stahl himself does not exercise investment discretion over the issuer's securities. Based on InvestingPro's Fair Value analysis, the stock currently appears to be trading above its intrinsic value.
In other recent news, Texas Pacific Land Corp. has seen substantial developments on multiple fronts. The company has reported strong Q3 2024 earnings, with consolidated revenues reaching $174 million and adjusted EBITDA at $144 million. This growth is attributed to increased oil and gas royalty production as well as a 37% year-over-year increase in water sales revenues.
Further, Texas Pacific Land is set to join the S&P 500, replacing Marathon Oil (NYSE:MRO). This move is in conjunction with the acquisition of Marathon Oil by ConocoPhillips (NYSE:COP). Texas Pacific Land's new position in the S&P 500 reflects its growing market capitalization.
In addition to financial growth and index inclusion, the company has made significant amendments to its corporate governance structure. The changes, approved by the Board of Directors and stockholders, now require a special meeting upon the written request of stockholders owning at least 25% of the outstanding common stock.
The company also announced a 37% increase in its quarterly dividend to $1.60 per share. Furthermore, Texas Pacific Land is on track 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 growth and diversification.
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