Murray Stahl, a director at Texas Pacific Land Corp (NYSE:TPL), has recently made several purchases of the company's common stock. The transactions, reported on November 8 and 11, 2024, involved acquiring a total of 24 shares. These purchases were made at prices ranging from $1,338.32 to $1,402.46 per share, amounting to a total investment of approximately $32,745.
The shares were acquired through various entities, including Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity (SO:FTCE11B) Fund LP, Horizon Common Inc, and Polestar (NASDAQ:PSNY) Offshore Fund Ltd. These transactions were conducted under a pre-established Rule 10b5-1 trading plan, as noted in the filing.
Horizon Kinetics Asset Management LLC, where Murray Stahl serves as Chairman, Chief Executive Officer, and Chief Investment Officer, manages the accounts involved in these transactions. However, Stahl does not participate in investment decisions regarding Texas Pacific Land Corp's securities.
In other recent news, Texas Pacific Land Corporation (TPL) reported robust Q3 2024 financial results, showcasing considerable growth in oil and gas royalty production and produced water royalty volumes. The company announced consolidated revenues of $174 million and an adjusted EBITDA of $144 million, with a significant 37% increase in water sales revenues, largely attributed to enhanced fracking techniques. Furthermore, TPL declared a 37% hike in its quarterly dividend to $1.60 per share.
In addition to these developments, TPL's oil and gas royalty production rose by 29%, reaching a record 28,300 barrels of oil equivalent per day. The company also revealed strategic acquisitions in the Permian Basin, expected to significantly boost production. TPL remains debt-free, maintaining a strong net cash position and progressing towards a 10,000 barrel per day desalination facility.
However, the company faced challenges with an 8% decline in realized oil prices and a 65% drop in natural gas prices, which negatively impacted the results. Despite these hurdles, recent acquisitions added approximately 900 barrels of oil equivalent per day to TPL's production.
Looking ahead, TPL is exploring non-oil and gas revenue opportunities, including solar, wind, data centers, and the beneficial reuse of produced water. The company is also on track to complete a desalination facility by mid-2025, with an estimated total cost of $25 million. These are the latest developments in Texas Pacific Land Corporation's ongoing efforts to diversify and strengthen its revenue streams.
InvestingPro Insights
Recent insider purchases by Murray Stahl at Texas Pacific Land Corp (NYSE:TPL) align with several positive indicators highlighted by InvestingPro. The company's impressive financial health is underscored by its strong gross profit margins, which stand at 93.27% for the last twelve months as of Q3 2024. This exceptional profitability is complemented by TPL's ability to maintain dividend payments for 11 consecutive years, demonstrating consistent shareholder returns.
The recent stock performance has been remarkable, with TPL showing a significant 32.26% return over the last month and an even more impressive 161.4% return over the past year. This surge in stock price has brought TPL close to its 52-week high, currently trading at 98.51% of that peak.
However, investors should note that the stock's rapid appreciation has led to elevated valuation metrics. TPL's P/E ratio stands at 71.39, indicating a premium valuation compared to many peers. Additionally, an InvestingPro Tip suggests that the stock may be in overbought territory based on its RSI (Relative Strength Index).
For those seeking a deeper analysis, InvestingPro offers 21 additional tips for TPL, providing a comprehensive view of the company's financial position and market dynamics. These insights can be particularly valuable given the stock's recent performance and the insider activity reported.
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