Form 4: Horizon Kinetics Reduces TPL Stake Post-Split

Horizon Kinetics Asset Management reports a significant reduction in its beneficial ownership of Texas Pacific Land Corp shares, adjusted for a recent 3-for-1 stock split.

Summary

• Horizon Kinetics Asset Management LLC (HKAM), a 10% owner and director of Texas Pacific Land Corp (TPL), filed a Form 4 reporting changes in beneficial ownership.
• The filing indicates a beneficial ownership of 3,487,690 shares of TPL Common Stock following a transaction on January 12, 2026.
• This reported beneficial ownership number explicitly reflects a three-for-one stock split that became effective on December 22, 2025.
• On December 18, 2024, HKAM had reported beneficial ownership of 3,578,173 shares in an amendment to its Schedule 13D, which was prior to the stock split.
• Adjusting the December 2024 beneficial ownership for the 3-for-1 stock split (3,578,173 shares * 3), HKAM's prior holding would have been approximately 10,734,519 shares.
• Comparing the split-adjusted prior holding to the current reported holding of 3,487,690 shares implies a substantial reduction in HKAM's stake by approximately 7,246,829 shares.
• The specific transaction reported in Table I is an acquisition of 1 share of Common Stock at a price of $311.84 on January 12, 2026, likely executed under a Rule 10b5-1 plan.
• Murray Stahl's direct interest was 7,848 shares and indirect interest was approximately 156,083 shares as noted in the December 18, 2024 13D filing.

Sentiment

Score: 3

Explanation: The implied substantial reduction in Horizon Kinetics Asset Management LLC's beneficial ownership, despite a small reported purchase, suggests a negative shift in sentiment or strategy from a key insider and 10% owner.

Positives

• Horizon Kinetics Asset Management LLC remains a significant 10% owner and director of Texas Pacific Land Corp, indicating continued, albeit reduced, involvement.
• The reported transaction, while small, is an acquisition of 1 share, which can be symbolically viewed as a positive action.

Negatives

• A significant reduction in Horizon Kinetics Asset Management LLC's beneficial ownership of Texas Pacific Land Corp shares is implied, decreasing from an estimated 10,734,519 split-adjusted shares to 3,487,690 shares.
• This substantial reduction by a 10% owner and director could be interpreted negatively by the market, potentially signaling a change in investment strategy or outlook for TPL.

Risks

• The substantial reduction in beneficial ownership by a major insider (10% owner and director) could signal a lack of confidence or a strategic shift, potentially leading to negative market sentiment and downward pressure on the stock price.
• The discrepancy between the reported 1-share acquisition and the overall significant reduction in holdings might create confusion or raise questions among investors regarding the insider's true intentions or the company's prospects.

Future Outlook

The filing does not provide explicit forward-looking statements or guidance from the company or the reporting person beyond the scheduled transaction date. However, the significant reduction in a major insider's stake could implicitly signal a revised outlook from that insider.

Management Comments

• Mr. Stahl does not exercise investment discretion with respect to the securities of the Issuer.

Industry Context

This filing reflects insider activity for a land and mineral rights company. Insider selling or reducing stakes, especially by significant shareholders, can sometimes precede or coincide with shifts in industry valuations or company-specific challenges. Texas Pacific Land Corp operates in the oil and gas royalty and land management sector, which is sensitive to commodity prices and regulatory changes. A major shareholder reducing its stake could be a response to perceived changes in the long-term outlook for this sector or TPL's specific assets.

Comparison to Industry Standards

• The implied reduction in a significant insider's stake (from an estimated 10.7 million shares post-split to 3.49 million shares) is a notable event that would typically be scrutinized by the market, similar to how large institutional investor movements are watched in other royalty/land-holding entities like Royalty Pharma (RPRX).
• The 3-for-1 stock split itself is a common corporate action, often aimed at increasing liquidity and making shares more accessible to a broader range of investors, a strategy employed by various companies across industries, including tech giants like NVIDIA (NVDA) or Amazon (AMZN) in the past.

Stakeholder Impact

• Shareholders: Potential negative impact on share price due to perceived lack of confidence from a major insider. Existing shareholders might question the company's future prospects.
• Management: May face increased scrutiny regarding the company's strategy and performance, especially if other insiders follow suit.

Next Steps

• Investors will likely monitor future Form 4 filings from Horizon Kinetics Asset Management LLC for further changes in their beneficial ownership.
• The market will likely assess the implications of a major insider reducing their stake, potentially impacting TPL's share price.

Key Dates

Recommendation

The significant reduction in beneficial ownership by a 10% owner and director, Horizon Kinetics Asset Management LLC, from an estimated 10.7 million split-adjusted shares to 3.49 million shares, is a strong negative signal. While the reported transaction is a small purchase, the overall change in holdings indicates a substantial disposition. Such a move by a major insider typically suggests a loss of confidence or a strategic exit, which could lead to downward pressure on the stock price and warrants a 'sell' recommendation for investors.

Keywords

Texas Pacific Land Corp, TPL, Horizon Kinetics Asset Management, HKAM, SEC Form 4, Beneficial Ownership, Insider Trading, Stock Split, 10b5-1 Plan, Institutional Investor, Director, Shareholder Activity