Keith Hutton, a director at TXO Partners, L.P. (NASDAQ:TXO), has recently acquired a significant amount of the company's common units. According to a recent SEC filing, Hutton purchased a total of 120,000 shares over a three-day period, from December 17 to December 19, 2024. The timing is notable as TXO currently trades near its 52-week low of $15.22, with InvestingPro analysis indicating the stock is currently undervalued.
The acquisitions were executed at prices ranging from $15.6366 to $16.0426 per share, resulting in a total transaction value of approximately $1.9 million. Following these purchases, Hutton now holds 4,120,215 shares directly. The company, with a market capitalization of $657 million, offers a substantial 14.4% dividend yield, while analysts maintain price targets between $25-26 per share.
These transactions highlight Hutton's continued investment in TXO Partners, a company engaged in crude petroleum and natural gas operations. For deeper insights into TXO's valuation metrics and additional analysis, including 10 more exclusive ProTips, visit InvestingPro.
In other recent news, TXO Partners, L.P. announced that Gary D. Simpson, President of Production and Development, has initiated a prearranged trading plan for selling company stock. This move is designed to cover tax liabilities associated with the vesting of phantom units after February 6, 2025. The plan, established under Rule 10b5-1 of the Securities Exchange Act of 1934, will remain active until the final vesting or forfeiture of the phantom units.
In addition to this development, TXO Partners has recently expanded its operational footprint with a significant acquisition of oil and gas assets in the Williston Basin of Montana and North Dakota. The assets, purchased from EMEP Acquisitions, LLC and VR4-ELM, LP, were acquired for $241.8 million in cash and 2,500,000 common units in TXO Partners.
The company has also amended its existing credit agreement, increasing the available aggregate commitments from $165.0 million to $275.0 million and extending the maturity date to late 2028. This comes alongside a registration rights agreement signed in conjunction with the asset acquisition.
Moreover, TXO Partners raised $19.5 million before underwriting discounts and commissions through the sale of an additional 975,000 common units. This follows the firm's recent public offering of 5 million common units, aimed to partially fund its acquisitions. Raymond (NS:RYMD) James is the sole book-running manager for the offering. These are the latest developments in the company's strategic growth and investment in its core business areas.
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