TXO

XTO Energy Founder Loads Up $33.75M in TXO Partners ($TXO) After Stock Plunge... Executives Snap Up $52M Total

05/20/2025 20:32

Key executives and directors of TXO Partners LP ($TXO) have executed massive stock purchases totaling 34.8 million shares worth $52 million immediately following a sharp stock price decline. The Fort Worth, Texas-based royalty company announced a $175 million equity offering on May 13 to finance a $475 million acquisition of oil, gas, and mineral assets from White Rock Energy in the Williston Basin of Montana and North Dakota. The offering price was set at $15 per unit, representing a 15.2% discount to the previous closing price. In response to this news, $TXO shares plummeted more than 16%, falling from $16.98 on May 13 to $14.70 on May 14. This represented a 23% decline from the recent high of $19.10 reached on March 20. What's particularly noteworthy is the concentrated insider buying that occurred immediately following this price drop. According to Form 4 filings with the SEC, between May 14 and May 19, key directors and officers purchased over 3.48 million shares totaling more than $52 million. The most substantial purchases came from board member Bob Simpson, who acquired 2,250,000 shares ($33.75 million), and director Keith Hutton, who purchased 700,000 shares ($10.5 million). Both transactions were executed at $15 per share, matching the public offering price. Bob Simpson is the co-founder of XTO Energy, one of Texas' largest oil and gas producers, where he served as CEO and Chairman until the company was acquired by ExxonMobil for $41 billion in 2010. He is also known as a co-owner of the Texas Rangers baseball team. Simpson previously purchased 100,000 TXO shares at $20 per share for a total of $2 million in June 2024. Keith Hutton is also a former CEO of XTO Energy with extensive experience in the oil and gas industry alongside Simpson. He had previously purchased 878,000 shares ($17.56 million) at $20 per share in June 2024 and made multiple purchases totaling over 120,000 shares during price dips in December 2024. Other notable purchases included director Lawrence Massaro's 20,000 shares ($300,000), officer Luther King Jr.'s 500,000 shares ($7.5 million), and William Adams III's 10,000 shares ($152,600). Director Philip Kevil also bought 3,000 shares at $15.18 per share on May 14. These substantial insider purchases are directly connected to the company's announced $475 million acquisition of Williston Basin assets. The acquisition is expected to close in Q3 2025, and if the transaction is not completed, the proceeds will be used for debt repayment and general corporate purposes. Currently, TXO Partners has approximately 41.2 million units outstanding with a market capitalization of around $730 million. Raymond James and Stifel are acting as joint bookrunners for the offering. The timing and magnitude of these insider purchases are particularly significant given TXO's stock performance in 2025. $TXO had risen from $15 to $19 between mid-January and mid-March, before declining sharply in early April amid increasing market uncertainty. On April 4, the stock closed at $16.36, down more than 9% from the previous day, and subsequently fluctuated between $16-17. During this period, the U.S. market experienced volatility due to various uncertainties, including President Trump's high-tariff policy announcements, dollar weakness, and deteriorating consumer sentiment. On May 16, Moody's downgraded the U.S. sovereign credit rating from Aaa to Aa1, adding to market concerns. However, the massive insider purchases by TXO executives can be interpreted as a strong vote of confidence in the company's business outlook and acquisition strategy despite the challenging market environment and stock price decline. The substantial participation by Simpson and Hutton, who successfully led XTO Energy to a $41 billion sale to ExxonMobil, may be viewed as a particularly positive signal for investors. Following these insider purchases, TXO's stock price rebounded to $15.20 on May 16 and maintained this level on May 19, suggesting the insider buying contributed to near-term price stabilization. TXO Partners operates with a royalty business model that focuses on generating income from oil and gas assets rather than direct operations, which exposes the company to commodity price fluctuations but with relatively lower operational risks. This business model, coupled with the Williston Basin asset acquisition, can be seen as a strategy to enhance long-term income stability. Energy sector analysts note that TXO's recent moves reflect the consolidation trend in the U.S. royalty sector, and the substantial insider buying indicates a positive outlook on asset values and cash flows. Considering the management team's past success record, this acquisition and insider purchasing activity could be a signal worth noting for long-term investors.

You can receive notifications when news is published.