NEW YORK—Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), reported a recent transaction involving the purchase of common stock. On January 2, 2025, Horizon Kinetics acquired 1 share of Texas Pacific Land Corp at a price of $1,148.57, bringing the total transaction value to $1,148. According to InvestingPro data, TPL boasts impressive gross profit margins of 93.27% and maintains a robust market capitalization of $28.03 billion.
Following this acquisition, Horizon Kinetics holds a total of 1,167,916 shares of Texas Pacific Land Corp. The transaction reflects the firm's continued investment in the company, where it holds more than a ten percent stake. The purchase was disclosed in a regulatory filing, highlighting Horizon Kinetics' ongoing interest in the oil royalty trader based in Dallas, Texas. TPL has maintained dividend payments for 11 consecutive years, with current analysis from InvestingPro indicating the stock is trading above its Fair Value.
This transaction is part of Horizon Kinetics' broader investment strategy, as detailed in their recent amendment to Schedule 13D. The amendment notes beneficial ownership of over 3.5 million shares, with Murray Stahl, Chairman and CEO of FRMO Corp, having a direct interest in a portion of these shares. Mr. Stahl, however, does not exercise investment discretion over the securities of Texas Pacific Land Corp. The company has demonstrated strong financial health, earning a "GREAT" rating from InvestingPro's comprehensive analysis, which offers 18 additional valuable insights about TPL's performance and outlook.
In other recent news, Texas Pacific Land Corp has reported strong Q3 2024 earnings, with consolidated revenues reaching $174 million and adjusted EBITDA at $144 million. The company's water sales revenues saw a 37% year-over-year increase, largely due to enhanced fracking techniques. Texas Pacific Land has also announced a 37% increase in its quarterly dividend to $1.60 per share.
The company is set to join the S&P 500, replacing Marathon Oil Corp (NYSE:MRO), a development that reflects the evolving market capitalizations of the involved companies. This change comes as Marathon Oil is being acquired by ConocoPhillips (NYSE:COP).
In addition to these developments, Texas Pacific Land has made significant amendments to its corporate governance structure, requiring a special meeting to be called upon the written request of stockholders owning at least 25% of the outstanding common stock.
In the near future, the company 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. Despite an 8% decline in realized oil prices and a 65% drop in natural gas prices, Texas Pacific Land maintains a strong balance sheet with zero debt.
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