TXO Partners (TXO) Investor presentation summary

Business model and asset base

• 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.

• Holds approximately 642,000 net acres and 1,300,000 gross acres, with a production base of 33,000 BOE/d in Q4 2025.

• Maintains a low base decline rate of 11%, supporting stable cash flows and distributions.

• Management, board, and significant owners collectively own about 31% of units, aligning interests with investors.

• Asset acquisition strategy has expanded the portfolio through targeted purchases in key basins since 2012.

Operational highlights and basin focus

• Focused on three major US basins: Williston, San Juan, and Permian, balancing oil and gas exposure for capital flexibility.

• Williston Basin receives the majority of 2026 discretionary capex, with production nearly doubling from 5.7 to 11.5 MBOE/d between Q4 2024 and Q4 2025.

• San Juan Basin Mancos Shale play offers 58,500 net acres with infrastructure advantages and future development or monetization options.

• Permian Basin assets provide 6.6 MBOE/d in 2025, with a low 6% decline rate and multiple upside opportunities through enhanced recovery methods.

Financial strategy and performance

• 2026 development costs are budgeted at approximately $70 million, supporting a high-margin capital program.

• Variable distribution policy returns all available cash to unitholders, with over $245 million distributed since IPO and $6.20 per share.

• Maintains a strong balance sheet, targeting 1.0x–2.0x Net Debt/Adjusted EBITDAX post-acquisitions.

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