Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), recently acquired additional shares of the company. On November 19, the firm purchased 3 shares of common stock at a price of $1,406.66 per share, amounting to a total transaction value of $4,219. Following this acquisition, Horizon Kinetics holds 1,138,463 shares in Texas Pacific Land Corp. The transaction highlights Horizon Kinetics' ongoing investment activities in the company, further consolidating its position as a major stakeholder.
In other recent news, Texas Pacific Land Corporation has reported substantial growth in its Q3 2024 earnings, with consolidated revenues reaching $174 million and adjusted EBITDA at $144 million. The company experienced a significant increase in oil and gas royalty production and water sales revenues, with the latter seeing a 37% year-over-year increase. This growth was largely attributed to enhanced fracking techniques. Additionally, the company has announced a 37% increase in its quarterly dividend to $1.60 per share.
Texas Pacific Land Corporation has also made noteworthy 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. This change is in line with the newly adopted Third Amended and Restated Bylaws. The company's stockholders approved these amendments, along with the executive compensation for named executive officers and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Looking forward, Texas Pacific Land Corporation is set 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, the company maintains a strong balance sheet with zero debt. These developments underscore the company's commitment to diversification and growth.
InvestingPro Insights
Horizon Kinetics' recent acquisition of Texas Pacific Land Corp (NYSE:TPL) shares aligns with several positive indicators highlighted by InvestingPro. TPL's impressive financial performance is reflected in its gross profit margin of 93.27% for the last twelve months as of Q3 2023, showcasing the company's operational efficiency. This aligns with an InvestingPro Tip noting TPL's "impressive gross profit margins."
The company's strong market position is further evidenced by its substantial market capitalization of $33.05 billion. TPL has demonstrated robust growth, with a 73.95% price total return over the past three months and a remarkable 165.45% return over the last year. These figures correspond with InvestingPro Tips highlighting TPL's "strong return over the last three months" and "high return over the last year."
However, investors should note that TPL is trading at a high P/E ratio of 73.73, which an InvestingPro Tip suggests may be "high relative to near-term earnings growth." This valuation metric, combined with the fact that the stock is trading near its 52-week high (99.33% of the high), indicates that careful consideration is warranted for potential investors.
For those seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for TPL, 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.