TPL

Texas Pacific Land ($TPL): Key Insiders' Year-Long Buying Spree Fuels 127% Stock Surge

05/13/2025 17:08

Texas Pacific Land Corp ($TPL) has been witnessing a notable pattern of consistent share purchases by its directors and major shareholders over the past year, attracting significant investor attention. Director Murray Stahl and major shareholder Horizon Kinetics Asset Management LLC have maintained steady buying momentum, while the stock has surged approximately 127% over the last 12 months. Texas Pacific Land, headquartered in Dallas, Texas, is a large land and resource management company founded in 1888. The company manages approximately 207,000 net royalty acres in the Permian Basin, one of America's most productive oil regions. TPL operates through two main segments: Land and Resource Management, which generates oil and gas royalty revenues, and Water Services through its subsidiary, Texas Pacific Water Resources LLC. Investigating the insider trading records reveals Director Murray Stahl's remarkable consistency, purchasing 10-12 shares almost daily from August 2024 through May 2025. Notably, these purchases were executed through a pre-planned trading program under Rule 10b5-1, suggesting his buying decisions were made with a long-term perspective rather than in response to short-term market fluctuations. Most recently, on May 12, 2025, he purchased another 10 shares for $13,616.18. Concurrently, major shareholder Horizon Kinetics Asset Management steadily purchased small quantities (mostly 1-3 shares) almost daily from June 2024 through February 2025. Horizon Kinetics reportedly owned 1,271,975 shares (approximately 16%) of TPL as of February 28, 2024. The relationship between Horizon Kinetics and Murray Stahl is noteworthy - Stahl has disclosed direct interest in 2,474 shares and indirect interest in about 53,550 shares, though he reportedly does not exercise investment discretion. In contrast, some senior executives sold portions of their holdings following significant stock price increases. In November 2024, Chief Accounting Officer Stephanie Buffington sold 210 shares at an average price of $1,389.11, totaling $291,713.10, while Chief Financial Officer Chris Steddum sold 350 shares at $1,340.00, generating $469,000.00. In March 2025, Officer Micheal Dobbs sold 1,150 shares at approximately $1,272.85, realizing $1,463,781.33, and CFO Steddum further divested 750 shares. These insider trading patterns become more intriguing when viewed alongside stock price movements. TPL shares began at around $580 in early June 2024, steadily climbed, and surged to approximately $1,700 in November 2024, before settling to trade in the $1,300 range currently. A significant milestone during this period was TPL's inclusion in the S&P 500 index in November 2024, though the stock dropped 4.6% to $1,539.27 on its first day of trading in the index on November 26. The company's financial performance has also been noteworthy. In Q1 2025, TPL reported revenue of $196 million (up 13% year-over-year) and net income of $120.7 million (up 5.4% year-over-year). Earnings per share (EPS) increased to $5.25 from $4.97 in the prior-year period. A particular financial strength is TPL's debt-free operation, though profit margins have slightly decreased to 62% from 66% a year earlier. Recent volatility in oil and gas markets has impacted TPL's performance. In its Q1 2025 results announced in May, the company reported adjusted core profit of $169.4 million, falling short of Wall Street's estimate of $180 million. This shortfall was attributed to a 7.5% decline in oil prices to $71.05 per barrel, though partially offset by increased production and higher natural gas prices. Energy industry experts value TPL's land assets as a source of continuous value creation. Particularly, the increasing oil and gas production in the Permian Basin underpins TPL's royalty revenues. Additionally, the company is exploring diversification of land utilization, including data center leases, enhancing its future growth potential. TPL's outlook will largely depend on energy price volatility, production activities in the Permian Basin, and expansion of its water services business. Despite current oil price declines, the consistent purchasing by Murray Stahl and Horizon Kinetics can be interpreted as reflecting high confidence in the company's long-term value. Investors should comprehensively consider TPL's unique business model, debt-free operations, and the persistent buying signals from key insiders. According to the company's governance and compensation committee report disclosed on May 9, TPL continues to strengthen its management strategy to enhance shareholder value. These factors are expected to form the foundation supporting the company's stock price moving forward.

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