Form 4: Texas Pacific Land Corp Director Stahl and Horizon Kinetics Increase Stake in Company

Director Murray Stahl, along with Horizon Kinetics entities, reports purchasing additional shares of Texas Pacific Land Corp (TPL) common stock.

Summary

• On March 22, 2024, Murray Stahl, a director of Texas Pacific Land Corp, and related entities under Horizon Kinetics, reported purchasing additional shares of TPL common stock.
• The purchases were made at a price of $1,685.87 per share.
• The transactions involved several entities including Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity Fund LP, Horizon Common Inc, and Polestar Offshore Fund Ltd.
• Stahl's beneficial ownership includes direct and indirect holdings through various entities.
• These purchases were made pursuant to a Rule 10b5-1 plan adopted on September 14, 2023.
• Horizon Kinetics Asset Management LLC (HKAM) manages some of these accounts, but Mr. Stahl does not participate in investment decisions with respect to the securities of the Issuer.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. Insider buying is generally a positive sign, but the purchases were made under a pre-arranged trading plan, which reduces the impact on sentiment. The large existing holdings of Horizon Kinetics also temper the significance of these additional purchases.

Positives

• The insider purchases may signal confidence in the company's future prospects.
• The use of a pre-arranged Rule 10b5-1 trading plan suggests a disciplined approach to investing.

Management Comments

• Mr. Stahl serves as Chairman, Chief Executive Officer and Chief Investment Manager of HKAM but does not participate in investment decisions with respect to the securities of the Issuer.

Industry Context

Insider buying is often seen as a positive sign, indicating that those with the most knowledge of the company believe its stock is undervalued or poised for growth. However, it's important to consider the context of the purchases, such as the use of a pre-arranged trading plan, which can mitigate concerns about opportunistic trading.

Comparison to Industry Standards

• Comparing TPL's insider activity to other land companies or royalty trusts could provide a benchmark.
• For example, companies like Viper Energy Partners LP (VNOM) or mineral rights owners could be used for comparison.
• Analyzing the frequency and size of insider transactions in these comparable companies can offer insights into whether TPL's insider activity is typical or noteworthy.

Stakeholder Impact

• Shareholders may view the insider purchases as a positive signal.
• The impact on employees, customers, suppliers, and creditors is likely minimal.

Key Dates