In a recent disclosure with the Securities and Exchange Commission, Texas Pacific Land Corp (NYSE:TPL) reported a series of insider purchases by key stakeholders. The transactions, which took place on November 12, 2024, involved the acquisition of common stock shares at prices ranging from $1,394.74 to $1,406.05, totaling $16,838.
Murray Stahl, a director at Texas Pacific Land Corp, along with Horizon Kinetics Asset Management LLC, were the primary reporting owners in these transactions. The purchases were made under a Rule 10b5-1 plan, which was adopted on May 14, 2024, allowing for pre-scheduled trading of the company's stock.
The transactions reflect a continued interest in Texas Pacific Land Corp by its insiders, with shares being acquired through various entities, including Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity (SO:FTCE11B) Fund LP, and Polestar (NASDAQ:PSNY) Offshore Fund Ltd, among others. As of the latest filings, these transactions have increased the total shares owned by the reporting parties, highlighting their ongoing commitment to the company's growth and prospects in the oil royalty trading sector.
In other recent news, Texas Pacific Land Corporation has reported robust Q3 2024 earnings, with significant growth in oil and gas royalty production and water sales revenues. The company's consolidated revenues reached $174 million, while adjusted EBITDA was reported at $144 million. Notably, TPL's water sales revenues saw a 37% year-over-year increase, largely due to enhanced fracking techniques. The company also announced a 37% increase in its quarterly dividend to $1.60 per share. In addition to these financial highlights, TPL 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. These changes, approved by the company's board and its stockholders, align with the newly adopted Third Amended and Restated Bylaws. Strategic acquisitions in the Permian Basin and a record increase in oil and gas royalty production are among TPL's recent developments. Looking ahead, TPL 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. These developments underscore TPL's commitment to diversification and growth.
InvestingPro Insights
The recent insider purchases at Texas Pacific Land Corp (NYSE:TPL) align with several positive indicators highlighted by InvestingPro. The company's stock has shown remarkable performance, with a 159.47% total return over the past year and an impressive 173.6% year-to-date return. This strong momentum is further evidenced by the stock trading at 96.78% of its 52-week high, suggesting investor confidence in TPL's value proposition.
InvestingPro Tips reveal that TPL has maintained dividend payments for 11 consecutive years, with a current dividend yield of 0.45% and a substantial dividend growth of 47.69% in the last twelve months. This commitment to shareholder returns aligns with the insider buying activity, potentially signaling management's positive outlook on the company's financial health and future prospects.
Furthermore, TPL boasts impressive gross profit margins, with the latest data showing a gross profit margin of 93.27% for the last twelve months as of Q3 2024. This exceptional profitability is complemented by a strong operating income margin of 77.28% for the same period, underscoring the company's operational efficiency in the oil royalty trading sector.
It's worth noting that while TPL demonstrates strong financial performance, it is trading at a high P/E ratio of 70.84, which may indicate that the stock is priced at a premium. Investors considering TPL should weigh these valuation metrics against the company's growth prospects and market position.
For those seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for TPL, providing deeper insights into the company's financial health and market position.
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