William H. Adams III, a director at TXO Partners, L.P. (NASDAQ:TXO), recently purchased 14,000 common units of the company. The transaction, executed on December 30, 2024, was completed at a weighted average price of $16.9284 per share, totaling approximately $236,997. The purchase comes as the company maintains an attractive dividend yield of ~14%, according to InvestingPro data. Following this acquisition, Adams holds 92,784 shares directly. The shares were bought in multiple trades at prices ranging from $16.75 to $17.00. With analyst price targets ranging from $25 to $26, suggesting significant upside potential, and the stock currently trading near its 52-week low of $15.22, this insider purchase aligns with InvestingPro‘s analysis showing the stock as undervalued. Get access to 8 more exclusive InvestingPro Tips and comprehensive insider trading analysis with an InvestingPro subscription.
In other recent news, TXO Partners, L.P. has made significant strides in its business operations. The company recently reported that its President of Production and Development, Gary D. Simpson, has established a prearranged trading plan for selling company stock to cover tax liabilities associated with the vesting of phantom units. The plan, set up under Rule 10b5-1 of the Securities Exchange Act of 1934, will remain in effect until the final vesting or forfeiture of the phantom units.
Additionally, TXO Partners has completed a substantial acquisition of oil and gas assets in the Williston Basin of Montana and North Dakota from EMEP Acquisitions, LLC and VR4-ELM, LP. The assets were purchased for a sum of $241.8 million in cash and 2,500,000 common units in TXO Partners.
Simultaneously, the company has 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. In conjunction with the asset acquisition, TXO Partners and the sellers signed a registration rights agreement, facilitating the resale of the equity consideration under the Securities Act of 1933.
Furthermore, the company raised $19.5 million before underwriting discounts and commissions through the sale of an additional 975,000 common units at $20.00 each. Raymond (NS:) James has been named as the sole book-running manager for the offering. These are among the recent developments at TXO Partners, highlighting its strategic growth and investment in its core business areas.
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