Horizon Kinetics Asset Management Acquires Shares in Texas Pacific Land Corp
In a notable recent transaction, Horizon Kinetics Asset Management LLC announced the acquisition of shares in Texas Pacific Land Corp (NYSE:), a company boasting a market capitalization of $26 billion and impressive gross profit margins of 93%, according to InvestingPro data. The asset management firm purchased a single share of common stock for $1,134.87, leading to a total transaction value of $1,134. Following this purchase, Horizon Kinetics now possesses a direct stake of 1,138,400 shares in the firm.
Ongoing Investment Strategy
This acquisition aligns with Horizon Kinetics’ continuous investment strategy, highlighted in their recent Schedule 13D amendment, which indicated beneficial ownership of 3,578,173 shares. The firm’s investment comes at a time when Texas Pacific Land demonstrates robust financial health, marked by 11 successive years of dividend payments and an impressive 116% total return over the past year. Under the leadership of Murray Stahl, Horizon Kinetics maintains a strong connection to Texas Pacific Land Corp, though Mr. Stahl himself does not directly manage investment decisions regarding the issuer’s securities. According to InvestingPro’s Fair Value analysis, the stock is currently trading above its intrinsic value.
Strong Financial Performance in Q3 2024
In other impactful news, Texas Pacific Land Corp has experienced significant developments across various sectors. The company announced strong earnings for Q3 2024, reporting consolidated revenues of $174 million and adjusted EBITDA of $144 million. This growth is largely attributed to enhanced oil and gas royalty production alongside a 37% year-over-year rise in water sales revenues.
Joining the S&P 500
Furthermore, Texas Pacific Land is set to join the S&P 500, taking the place of Marathon Oil (NYSE:). This transition coincides with ConocoPhillips’ acquisition of Marathon Oil, indicating Texas Pacific Land’s expanding market prominence.
Corporate Governance Enhancements
Alongside financial growth and increased index representation, Texas Pacific Land is also refining its corporate governance structure. Recent amendments, approved by both the Board of Directors and shareholders, stipulate that a special meeting is required upon the written request of stockholders owning at least 25% of the outstanding common stock.
Quarterly Dividend Increase and Future Prospects
Moreover, the company declared a notable 37% increase in its quarterly dividend, raising it to $1.60 per share. Looking ahead, Texas Pacific Land is on schedule to complete a desalination facility by mid-2025 and is actively exploring opportunities beyond oil and gas revenue. These recent strides emphasize the company’s dedication to growth and diversification.
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