TXO

TXO Partners ($TXO) Directors Deploy $44.6 Million in Massive Buying Spree Following Equity Offering-Induced Stock Drop

05/16/2025 10:23

Key executives at Texas-based energy company TXO Partners ($TXO) have made massive purchases following a sharp decline in the company's stock price. These insider purchases, totaling approximately 3 million shares worth $44.6 million, came after the company's stock plummeted following an announcement of fundraising for a major acquisition. On May 13, 2025, TXO Partners announced a $175 million equity offering to finance a $475 million acquisition of oil, gas, and mineral assets from White Rock Energy in the Williston Basin region. The news sent the stock tumbling 13.5% from $17.68 on May 13 to $15.30 on May 14. Immediately following this drop, on May 15, company director Bob Simpson purchased a staggering 2,250,000 shares at $15.00 per share, for a total of $33.75 million. This represents one of the largest single insider purchases at the company in recent years. Simpson had previously purchased 100,000 shares in June 2024 for $2 million. Director Keith Hutton also made a substantial purchase on the same day, acquiring 700,000 shares at $15.00 per share for a total of $10.5 million. Hutton has demonstrated a pattern of buying during price dips, having purchased a total of 120,000 shares for over $1.9 million in December 2024, and 878,000 shares for $17.56 million in June 2024. Directors Lawrence Massaro and Phillip Kevil joined the buying spree, purchasing 20,000 shares ($300,000) and 3,000 shares ($45,540) respectively. Kevil had also purchased 2,000 shares during the December 2024 weakness. TXO Partners, which went public on the New York Stock Exchange in January 2023, is an oil and gas company focused on energy assets in Texas and New Mexico. The pending acquisition represents an expansion of their operations into the Williston Basin of Montana and North Dakota. The transaction is expected to close in the third quarter of 2025, with proceeds being used to repay debt and for general corporate purposes if the acquisition does not complete. The equity offering was priced at $15.00 per unit, representing a 15.2% discount to the last closing price before the announcement. Notably, the insiders purchased at essentially the same price as the public offering, suggesting that management views the price drop as an opportunity and signals strong confidence in the company's long-term growth potential and the value of this acquisition. TXO Partners' stock has shown considerable volatility in recent months. After trading above $19.50 in mid-March 2025, the stock fell below $17 in early April amid broader market declines related to the U.S. dollar's significant drop and escalating trade tensions. It had begun to recover through early May before dropping again with the equity offering announcement. This pattern of large insider purchases is not unprecedented for TXO. Similar cluster buying has occurred during previous significant price drops, particularly in June and December 2024, led by the same key insiders - Bob Simpson and Keith Hutton. In both cases, the stock subsequently recovered some of its losses. According to SEC filings, the purchases by Simpson and Hutton were simple acquisitions, not part of 10b5-1 pre-planned trading arrangements, indicating that they were based on the insiders' assessment of market conditions and company value. The Williston Basin acquisition appears to be part of TXO Partners' diversification and growth strategy. The region, which spans parts of Montana and North Dakota, is one of the major oil-producing areas in the United States, and the acquisition is expected to significantly increase the company's production capacity and reserves. The broader market environment has been challenging for energy companies. Heightened inflation concerns and trade tensions between the U.S. and China created uncertainty in early 2025. However, after the U.S. dollar's sharp decline in early April, the market showed signs of recovery by early May, with the S&P 500 rebounding and positive signals emerging for the energy sector. Against this backdrop, the strong buying signal from TXO insiders is particularly notable. The willingness of Simpson and Hutton to commit substantial capital to the company suggests they view TXO's long-term prospects very positively.

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