Horizon Kinetics Asset Management LLC, along with Director Murray Stahl, reported a series of stock acquisitions in Texas Pacific Land Corp (NYSE:TPL) on October 29, 2024. The transactions, detailed in a recent SEC filing, involved the purchase of a total of 12 shares of common stock. These acquisitions were executed at prices ranging from $1,090.97 to $1,091.11 per share, culminating in a total investment of $13,092.
The purchases were made across various funds and entities associated with Horizon Kinetics, including Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity Fund LP, and Polestar (NASDAQ:PSNY) Offshore Fund Ltd, among others. This series of transactions reflects ongoing investment activities under a Rule 10b5-1 plan adopted earlier in the year.
Murray Stahl, who holds a directorial position at Texas Pacific Land Corp, is noted to have indirect ownership through Horizon Kinetics Asset Management LLC, where he serves as Chairman and CEO. However, it's important to note that Stahl does not participate in investment decisions regarding the issuer's securities, according to the filing's footnotes.
In other recent news, Texas Pacific Land Corporation (TPL) reported a record-breaking second quarter 2024 performance in its Water Services and Operations segment. The company's consolidated revenues reached approximately $172 million, marking a 14% year-over-year growth, with diluted earnings per share of $4.98. The water segment set corporate records for sales revenues, volumes, and net income. Additionally, the company is focusing on expanding its mineral and royalty assets in the Permian Basin.
In other developments, the Public Utility Commission of Texas has shortlisted 17 gas-fired power plant projects, including NRG Energy (NYSE:NRG), Vistra, Constellation, NextEra, and GE Vernova, for a share of $5.38 billion in government funding. This funding, part of the Texas Energy Fund initiative, is aimed at bolstering the state's power grid. The approved projects, representing nearly 10,000 megawatts in power generation capacity, are expected to receive their initial loan disbursements by December 31, 2025.
These are the latest developments in the energy sector, highlighting the ongoing efforts to strengthen energy infrastructure and increase power generation capacity, as well as the impressive financial performance of companies like Texas Pacific Land Corporation.
InvestingPro Insights
The recent stock acquisitions by Horizon Kinetics Asset Management LLC and Director Murray Stahl in Texas Pacific Land Corp (NYSE:TPL) align with several positive indicators highlighted by InvestingPro. TPL's impressive financial health is evident from its ability to hold more cash than debt on its balance sheet, and its liquid assets exceeding short-term obligations. This strong financial position is further underscored by cash flows that can sufficiently cover interest payments.
InvestingPro data reveals that TPL boasts a remarkable gross profit margin of 93.61% for the last twelve months as of Q2 2024, reflecting the company's operational efficiency. This aligns with the InvestingPro Tip noting TPL's "impressive gross profit margins." Additionally, the company's revenue for the same period stands at $671.1 million USD, with a quarterly revenue growth of 7.3% in Q2 2024, indicating steady expansion.
However, investors should be aware that TPL is currently trading at high valuation multiples. The P/E ratio stands at 57.4, which the InvestingPro Tips flag as "trading at a high earnings multiple." This valuation consideration is particularly relevant given the recent stock purchases by insiders.
It's worth noting that TPL has maintained dividend payments for 11 consecutive years, showcasing a commitment to shareholder returns. The stock has also demonstrated strong performance, with a 95.71% price total return over the past six months and an impressive 115.67% year-to-date return as of the latest data.
For investors seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for TPL, providing a deeper understanding of the company's financial landscape and market position.
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