TXO Partners (TXO) Investor Presentation summary

Business model and strategy

• Operates as a yield-oriented MLP focused on long-lived legacy oil and gas properties with strong cash flows and low decline rates, supporting substantial distributions to unitholders.

• Maintains a vision for long-term production and distribution, building value through strategic acquisitions in premier US basins.

• Management, board, and significant owners are highly aligned, collectively holding about 31% of units as of September 2025.

• Focuses on conventional development with managed growth and lower capital expenditures, leveraging low-risk assets.

• Operates primarily in the Permian, San Juan, and Williston Basins, with a total of approximately 642,000 net acres.

Operational highlights

• Achieved a 15.5% CAGR in daily oil production from 2022 through Q3 2025, with 39% growth in daily oil production YTD 2025 versus FY 2024.

• Reported 29,000 daily oil equivalent barrels of production in Q3 2025.

• Expanded Williston Basin presence in 2024–2025, acquiring a total of ~270,000 net acres, enhancing oil share and operating efficiency.

• Holds 58,500 net acres in the Mancos Shale play of the San Juan Basin, with infrastructure advantages and future development optionality.

• Permian Basin assets include ~77,000 net acres, 2024 production of 7.0 MBoe/d (84% oil), and a base decline rate of ~6%.

Financial performance and policies

• Distributed over $229 million to unitholders since IPO, with total per share distributions of $5.90.

• Full-year development costs are budgeted to increase to ~$65 million.

• Maintains a strong balance sheet, targeting a ~1.0x Net Debt/Adjusted EBITDAX multiple post-acquisitions.

• All available cash is distributed to unitholders, leveraging the MLP structure to avoid double taxation.

• Employs an opportunistic hedging strategy to manage commodity price risk and support consistent returns.