TXO Partners (TXO) Q1 2025 earnings summary

Executive summary

• Revenue rose 25% year-over-year to $84.3 million, driven by Williston Basin acquisitions and higher natural gas and NGL prices, partially offset by lower oil prices and hedging losses.

• Net income declined to $2.4 million from $10.3 million year-over-year, impacted by higher production, depreciation, and interest expenses.

• Declared a quarterly distribution of $0.61 per unit for Q1 2025, payable May 23, 2025, maintaining operational stability.

• Maintained steady operations across the Permian, San Juan, and Williston basins, focusing on high-margin properties and prudent capital investments.

• Leadership transition: Brent W. Clum and Gary D. Simpson appointed Co-CEOs effective April 1, 2025.

Financial highlights

• Oil and condensate revenue: $65.0 million (up from $38.0 million year-over-year); NGL revenue: $8.6 million (up from $6.5 million); natural gas revenue: $10.8 million (down from $22.9 million).

• Adjusted EBITDAX was $41.0 million, up from $26.4 million year-over-year.

• Cash available for distribution increased to $29.3 million from $22.8 million year-over-year.

• Net cash provided by operating activities was $30.6 million, up from $25.2 million year-over-year.

• Operating loss of $3.6 million versus operating income of $2.7 million year-over-year.

Outlook and guidance

• Management expects continued volatility in oil and gas prices, with inflationary pressures likely to persist on operating costs.

• 2025 capital expenditures budgeted at $30–$50 million, with flexibility to adjust based on commodity prices and operational needs.

• Anticipates funding distributions, debt obligations, and capital programs from operating cash flow and credit facility availability.

• Management remains focused on maintaining durable distributions and prudent capital allocation in response to commodity price fluctuations.

• Long-lived, resource-rich assets expected to support production volumes and reserve additions.