KEY TAKEAWAYS

• Texas Pacific Land shares are rising in premarket trading Friday, a day after S&P Dow Jones Indices said the real estate operating company will be replacing Marathon Oil in the S&P 500.

• TPL's shares, which hit an all-time high Thursday, are surging a further 6% Friday morning.

• Marathon Oil is being removed from the index as its acquisition by ConocoPhillips is set to close Friday.

Texas Pacific Land (TPL) shares are rising in premarket trading Friday, a day after S&P Dow Jones Indices said the real estate operating company will be replacing Marathon Oil (MRO) in the S&P 500 Index.

TPL's shares, which closed at $1,515.53 Thursday after touching an all-time intraday high of $1,526.04, are surging a further 6% Friday morning.

The change will take effect prior to the start of trading Tuesday, according to S&P Dow Jones Indices, which noted that Marathon Oil is being acquired by ConocoPhillips (COP) in a deal expected to close Friday.

Dubbed the "S&P Phenomenon," an announcement of membership tends to lead to a temporary spike in a company's stock, because the index is widely tracked by institutional investors.

TPL is one of the largest landowners in Texas, with most of its ownership concentrated in the Permian Basin, the booming oil and gas field in the state. Marathon Oil's assets, meanwhile, include properties in the Permian.

TPL shares have soared nearly 200% year-to-date through Thursday's close.