TXO Partners (TXO) investor relations material

Business model and asset overview

• Operates as a yield-oriented MLP focused on long-lived, low-decline conventional oil and gas assets across the Permian, San Juan, and Williston Basins, with ~642,000 net acres and 129 MMBoe proved reserves as of 2025.

• Maintains a vision for long-term production and distribution, distributing a substantial portion of operational cash flow directly to unitholders.

• Management, board, and significant owners are aligned with approximately 30% ownership of units.

Operational highlights and basin focus

• Daily oil production grew at a 23% CAGR from 2022 to Q1 2026, reaching 32,000 Boe/d in Q1 2026.

• Williston Basin is the primary focus for 2026 discretionary capex, with production expected to double from 5.7 to 11.5 MBoe/d between Q4 2024 and Q4 2025.

• Permian Basin assets offer upside through infill drilling, waterfloods, and recompletions, with a low base decline rate of ~6%.

• San Juan Basin Mancos Shale play provides infrastructure advantages and future development optionality.

Financial strategy and distribution policy

• 2026 development costs are budgeted at ~$70 million, supporting substantial free cash flow.

• Variable distribution policy aims to deliver all available cash to unitholders, with over $264 million distributed since IPO.

• Maintains a strong balance sheet with a target net debt/Adjusted EBITDAX ratio of ~1.0x to ~2.0x.

• Employs an opportunistic hedging program to manage commodity price risk.