TXO Energy Partners price target raised to $24 by Raymond James

Investing.com - Raymond (NSE:RYMD) James raised its price target on TXO Energy Partners (NYSE:TXO) to $24.00 from $23.00 while maintaining a Strong Buy rating ahead of the company’s second-quarter earnings report. The energy company, currently trading at $15.12 with a market cap of $828M, has received unanimous Strong Buy recommendations from analysts, according to InvestingPro data.

The firm expects TXO to deliver second-quarter production of approximately 25.8 Mboe/d, above the consensus estimate of 25.2 Mboe/d, with quarterly capital expenditure of around $9 million compared to Street expectations of $9.5 million.

Raymond James projects stronger NGL volumes in the second quarter with a 25% increase quarter-over-quarter, alongside a slight decrease in natural gas production of approximately 1% quarter-over-quarter, resulting in an estimated distribution of $0.42 per common unit versus consensus of $0.40.

The firm forecasts full-year 2025 production of approximately 28 Mboe/d, in line with consensus estimates, and projects 2026 production of approximately 32 Mboe/d, slightly above the Street expectation of 31.7 Mboe/d.

Raymond James estimates full-year distributions of $1.72 per unit for 2025 and $2.02 for 2026, representing yields of 11% and 13% respectively, with the price target increase attributed to a stronger oil price strip since the firm’s previous publication.

In other recent news, TXO Partners has made significant strides in the energy sector with a series of strategic moves. The company has priced a public offering of $175 million in common units, setting the price at $15.00 per unit. This offering is expected to generate approximately $165.3 million after accounting for underwriting discounts and commissions. The proceeds are intended to support the acquisition of producing assets from White Rock Energy, valued at approximately $350 million, with additional adjustments. This acquisition will enhance TXO’s position as a leading oil producer in the Elm Coulee field, adding significant daily production to its portfolio.

Additionally, TXO Partners has announced its dual listing on the newly established NYSE Texas, becoming a founding member while maintaining its primary listing on the New York Stock Exchange. This move underscores the company’s Texas roots and its longstanding relationship with the NYSE. The company’s executives have expressed pride in this initiative, highlighting its significance for both TXO and the exchange. These developments reflect TXO Partners’ ongoing efforts to strengthen its market presence and operational capabilities.

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