Horizon Kinetics Asset Management acquires Texas Pacific Land shares worth $2.5k By Investing.com

In a recent transaction, Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:), has purchased additional shares of the company. The asset management firm acquired 3 shares of Texas Pacific Land Corp at a price of $828.46 per share, totaling approximately $2,485.

The transaction, which took place on July 17, 2024, was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC). Following this acquisition, Horizon Kinetics Asset Management LLC’s total beneficial ownership in Texas Pacific Land Corp amounts to 1,085,062 shares. This figure includes both direct and indirect interests as noted in a Schedule 13D amendment filed by the firm earlier this year.

It’s worth noting that Murray Stahl, associated with Horizon Kinetics Asset Management LLC, does not exercise investment discretion with respect to the securities of the issuer. The firm’s pecuniary interest in the shares beneficially owned is disclosed in the filing, emphasizing the extent of its investment in Texas Pacific Land Corp.

Investors often monitor such transactions closely as they may indicate the confidence of major stakeholders in the company’s current and future prospects. The purchase of shares by a significant investor like Horizon Kinetics Asset Management LLC can be a point of interest to the market, as it may reflect a positive outlook on the company’s value and potential for growth.

In other recent news, Texas Pacific Land Corporation (TPL) has reported a strong first quarter in 2024, marked by significant growth in water sales and produced water royalties. The company’s consolidated revenues reached $174 million, with adjusted EBITDA of $152 million and free cash flow of $115 million. TPL’s strategic investment of $20 million in the development of a cost-effective desalination method through fractional freezing has advanced to the construction of a larger test facility capable of processing 10,000 barrels per day.

These recent developments demonstrate TPL’s commitment to innovation and value generation for shareholders. The company has created Transmissive Water Services to manage desalination and water reuse efforts, currently in commercial negotiations with upstream operators. Despite the challenge of reducing treatment costs for its desalination technology, TPL’s water business has seen significant quarter-over-quarter revenue growth, driven by the demand for water-intensive simul-fracs.

However, TPL acknowledges regulatory hurdles and the need for alternative energy sources to lower operational costs as ongoing challenges. The company also anticipates that low prices may affect gas realizations in the upcoming second quarter. Despite these challenges, TPL maintains a strong balance sheet, which supports ongoing investment and value creation initiatives.

InvestingPro Insights

As Horizon Kinetics Asset Management LLC increases its stake in Texas Pacific Land Corp (NYSE:TPL), investors are keen to understand the underlying financial health and market perception of the company. Texas Pacific Land Corp holds a strong financial position, with a notable gross profit margin of 94.18% over the last twelve months as of Q1 2024, underscoring the company’s efficiency in managing its cost of goods sold relative to its revenue, which stands at $659.38M USD.

InvestingPro Tips reveal that Texas Pacific Land Corp also boasts a robust balance sheet, holding more cash than debt, which is a reassuring sign for investors considering the company’s financial resilience. Additionally, the firm has demonstrated a commitment to returning value to shareholders, maintaining dividend payments for 11 consecutive years, with a dividend growth of 8.0% in the same period.

Despite the solid fundamentals, the company’s stock is trading at a high earnings multiple, with a P/E ratio of 43.51, indicating that the market has high expectations for future earnings growth. Texas Pacific Land Corp’s stock has also experienced significant price appreciation, returning 75.53% over the past year, and currently trades near its 52-week high at 98.18% of the peak price.

For investors seeking a deeper dive into Texas Pacific Land Corp’s performance and future outlook, InvestingPro offers additional insights. There are currently 19 additional InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/TPL. Those interested in subscribing to the service can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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