TXO Partners prices $175 million public offering

FORT WORTH, Texas - TXO Partners, L.P. (NYSE: TXO), a master limited partnership specializing in the development of oil and gas reserves in North America, has priced a public offering of $175 million in common units. The offering, announced today, involves 11,666,667 common units at a public price of $15.00 per unit. The company, currently valued at $731 million, trades near its InvestingPro Fair Value while offering an impressive 13.8% dividend yield. The company has also allowed underwriters an option to purchase up to an additional 1,750,000 common units at the offering price, subtracting underwriting discounts and commissions.

The closing of the offering is anticipated for tomorrow, subject to standard closing conditions. TXO expects to net approximately $165.3 million from this offering, after underwriting discounts and commissions, excluding any additional common units purchased by underwriters. InvestingPro analysis reveals the company operates with a moderate debt-to-equity ratio of 0.28, though recent data indicates rapid cash consumption.

The proceeds are earmarked to partially fund the acquisition of assets from White Rock Energy, LLC, a Quantum Capital Group portfolio company. Notably, the offering’s completion is not contingent on finalizing the acquisition. Should the acquisition not proceed, TXO plans to allocate the funds to repay outstanding borrowings under its revolving credit facility and for general partnership purposes.

Joint book-running managers for the offering include Raymond James and Stifel, alongside Capital One Securities, Mizuho, and Texas Capital Securities. The offering is made possible by two effective shelf registration statements filed with the Securities and Exchange Commission (SEC), and the securities will be offered by means of a prospectus supplement and the accompanying base prospectus.

TXO Partners operates primarily within the Permian Basin, San Juan Basin, and Williston Basin, focusing on the acquisition and exploitation of conventional energy reserves. With a P/E ratio of 42.14 and several key financial indicators to monitor, investors can access comprehensive analysis and 8 additional exclusive ProTips through InvestingPro’s detailed coverage of TXO’s financial health and market position.

This press release, which is based on a press release statement, does not serve as an offer to sell or a solicitation of an offer to buy securities. The sale of these securities will only take place through a prospectus supplement and accompanying base prospectus, in accordance with the Securities Act of 1933, as amended.

In other recent news, TXO Partners, L.P. has announced a significant acquisition, purchasing assets in the Elm Coulee field from White Rock Energy, LLC for approximately $350 million, with North Hudson Resource Partners LP acquiring a 30% non-operated interest. This acquisition, expected to close in the third quarter of 2025, aims to bolster TXO’s production by adding approximately 6,800 daily barrels of oil equivalent. Additionally, TXO Partners has launched a $175 million public offering of common units to partially fund this acquisition, although the offering’s completion is not dependent on the acquisition’s closure. Analyst firm Stifel has reinstated coverage of TXO Energy with a Buy rating, citing the company’s experienced leadership and low debt as positive factors. The firm has set a price target of $20.00 per share, highlighting TXO’s conservative capital expenditure and distribution strategies. In leadership developments, Lawrence S. Massaro has joined TXO’s Board of Directors, bringing over 40 years of energy sector experience. Furthermore, the company announced the transition of Bob R. Simpson from CEO to Chairman, with Gary D. Simpson and Brent W. Clum stepping in as Co-Chief Executive Officers. These moves reflect TXO’s strategic efforts to strengthen governance and business operations.

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