In a recent disclosure to the Securities and Exchange Commission, Texas Pacific Land Corp (NYSE 🙂 reported a series of insider purchases by key stakeholders. The transactions, which took place on November 12, 2024, involved the acquisition of common shares at prices ranging between $1,394.74 and $1,406.05, for a total of $16,838.
Murray Stahl, Director of Texas Pacific Land Corp, along with Horizon Kinetics Asset Management LLC, were the largest reporting owners in these transactions. The purchases were made pursuant to a Rule 10b5-1 plan, which was adopted on May 14, 2024, allowing pre-scheduled trading of the company’s shares.
The transactions reflect continued interest in Texas Pacific Land Corp by its insiders, with shares acquired through several entities, including Horizon Kinetics Hard Assets LLC, Horizon Credit Chance (SO:) Fund LP and Polestar (NASDAQ:) Offshore Fund Ltd, among others. As of the latest filings, these transactions have increased the total shares owned by the reporting parties, highlighting their continued commitment to the company’s growth and prospects in the oil royalty trading sector.
In other recent news, Texas Pacific Land Corporation reported strong third-quarter 2024 earnings, with significant growth in oil and gas royalty production and water sales revenue. The company’s consolidated revenues reached $174 million, while adjusted EBITDA was $144 million. Notably, TPL’s water sales revenue saw a 37% year-on-year increase, largely due to improved 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 modifications to its corporate governance structure, requiring the convening of a special meeting upon the written request of shareholders holding at least 25% of the outstanding common shares. These changes, approved by the company’s board of directors and its shareholders, align with the recently adopted Third Amended and Restated Bylaws. Among TPL’s recent developments are strategic acquisitions in the Permian Basin and a record increase in oil and gas royalty production. 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 beneficial reuse. of the water produced. These developments underscore TPL’s commitment to diversification and growth.
InvestingPro Insights
Recent insider buying in Texas Pacific Land Corp (NYSE:TPL) aligns with several positive indicators highlighted by InvestingPro. The company’s shares have shown remarkable performance, with a total return of 159.47% over the past year and an impressive return of 173.6% so far this year. 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 its dividend payments for 11 consecutive years, with a current dividend yield of 0.45% and a substantial dividend growth of 47.69% over the trailing twelve months. This commitment to shareholder returns aligns with insider buying activity, potentially indicating management’s positive outlook on the company’s financial health and future prospects.
Additionally, TPL boasts impressive gross profit margins, with the latest data showing a gross profit margin of 93.27% for the trailing twelve months to 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 is 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 share price is at a premium. Investors considering TPL should weigh these valuation metrics against the company’s growth prospects and market position.
For those looking for 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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