Texas Pacific Land, a large owner of acreage in the Permian basin, will replace Marathon Oil in the S&P 500 index on November 26, as Marathon Oil is being acquired by ConocoPhillips in a deal expected to close on November 22, S&P Dow Jones Indices said.
Texas Pacific Land Corporation has a company-level market capitalization that is more representative of the large-cap market space, according to S&P Dow Jones Indices.
Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 873,000 acres of land, with the majority of its ownership concentrated in the Permian Basin. The company is not an oil and gas producer, but its surface and royalty ownership provide revenue opportunities throughout the life cycle of a well.
Texas Pacific Land reported a net income of $106.6 million for the third quarter of 2024 compared to a net income of $114.6 million for the second quarter of this year. Total revenues rose to $173.6 million in Q3, up from $172.3 million for the prior quarter, primarily due to higher oil and gas royalty revenue and a rise in produced water royalties, the company said in its Q3 earnings release.
Following the inclusion in the S&P 500 index, shares in Texas Pacific Land (NYSE: TPL) hit an all-time high on Thursday.
Marathon Oil, which leaves the S&P 500 index on November 26, agreed earlier this year a deal to be acquired by ConocoPhillips in an all-stock transaction with an enterprise value of $22.5 billion, inclusive of $5.4 billion of net debt.
ConocoPhillips has said it expects to close the planned acquisition of Marathon Oil this quarter and expects to significantly exceed its initial $500 million synergy guidance, the executive added.
Closing is now expected to take place on Friday, November 22, S&P Dow Jones Indices said.
By Tsvetana Paraskova for Oilprice.com
Energy News Beat