TPL

Texas Pacific Land ($TPL) Major Shareholder Murray Stahl Shows Unwavering Conviction with Year-Long Daily Buying Spree

06/02/2025 15:39

A remarkable insider trading pattern has emerged at Texas Pacific Land Corp ($TPL), the owner of vast land and royalty interests in the prolific Permian Basin of Texas. Major shareholder Horizon Kinetics Asset Management and board member Murray Stahl have been consistently purchasing shares for nearly a year. $TPL's stock price journey has been extraordinary, surging from $585 in June 2024 to peak above $1,700 in mid-November—a stunning 190% rally—before pulling back to current levels around $1,114. Despite this extreme volatility, Murray Stahl has maintained an almost daily buying pattern that has captured market attention. Murray Stahl serves as Chairman and CEO of Horizon Kinetics, bringing over 40 years of investment industry experience to his role. Known for value investing and long-term strategies, Stahl has built a reputation for identifying companies with unique business models that the market undervalues. Horizon Kinetics currently holds approximately 16% of $TPL as its largest shareholder, making Stahl's continued purchases a strategic institutional decision rather than merely personal investment. Insider trading data reveals that Murray Stahl has been purchasing 10-12 shares almost daily from August 2024 through May 2025. Notably, he maintained his buying discipline even during price declines, and actually increased his purchasing activity during market corrections rather than during rallies. This suggests he continues to view current price levels as attractive for long-term value creation. Horizon Kinetics Asset Management LLC has also maintained consistent small-lot purchases during the same period. Interestingly, the buying patterns of both entities align closely, reflecting Murray Stahl's dual capacity as both individual and institutional investor. SEC filings include disclaimers stating that Stahl "disclaims beneficial ownership except to the extent of his pecuniary interest" in Horizon Kinetics shares, highlighting the complex ownership structure. Meanwhile, some executives have taken profits. CFO Chris Steddum sold shares twice—350 shares in November 2024 and 750 shares in March 2025—while CAO Stephanie Buffington disposed of 210 shares. However, these sales represent relatively modest amounts compared to the sustained purchasing by Stahl and Horizon Kinetics. $TPL operates a unique business model in the energy sector. The company owns approximately 207,000 net royalty acres in the Permian Basin, America's largest oil-producing region, generating revenue through oil and gas royalties, land leasing, and water services. This structure allows $TPL to benefit from energy sector growth without direct operational risks—resembling the "tollgate" business model favored by Warren Buffett. Recent financial performance shows mixed results. First-quarter 2025 net income rose 5.4% year-over-year to $120.7 million, but adjusted EBITDA of $169.4 million missed Wall Street estimates of $180 million. The shortfall primarily resulted from a 7.5% decline in oil prices to $71.05 per barrel, though increased production and higher natural gas prices provided partial offsets. The company's financial health remains exceptionally strong. $TPL carries zero debt while maintaining $460 million in cash reserves, with trailing twelve-month revenue of $727.66 million and net income of $460.2 million. The company's 43% ROE and 76.69% operating margin significantly exceed industry averages. Industry experts view Murray Stahl's persistent buying positively. His investment philosophy centers on discovering "unique assets whose value the market fails to recognize," and $TPL's Permian Basin land rights exemplify this approach. Given U.S. energy independence policies and expanding shale oil production, $TPL's royalty income streams appear positioned for stable long-term growth. $TPL's November 2024 inclusion in the S&P 500 adds another positive catalyst. While the stock declined 4.6% on its first day of inclusion, this entry should drive institutional buying and improve liquidity over time, contributing to long-term price stability. Key factors to monitor include August earnings results, oil price trends, and new development projects in the Permian Basin. $TPL's exploration of data center site leasing represents a potential new growth driver that could diversify revenue streams beyond traditional energy operations. Murray Stahl's unwavering buying conviction signals confidence in these long-term value creation opportunities.

You can receive notifications when news is published.