TXO Partners (TXO) Q3 2024 earnings summary

Executive summary

• Completed two significant Williston Basin acquisitions in August 2024, expanding leasehold to 1,120,000 gross (550,000 net) acres and increasing oil-weighted production.

• Raised $141.2 million in a public equity offering to partially fund acquisitions; $148 million drawn on credit facility.

• Revenues for Q3 2024 were $68.7 million, down 2% year-over-year; net income was $0.2 million, down from $8.5 million.

• For the nine months ended September 30, 2024, revenues fell 33% to $193.5 million and net income dropped to $13.3 million from $89.7 million.

• Declared Q3 2024 distribution of $0.58 per unit, consistent with prior quarter.

Financial highlights

• Q3 2024 revenues: $68.7 million (vs. $69.9 million Q3 2023); net income: $0.2 million (vs. $8.5 million).

• Nine months 2024 revenues: $193.5 million (vs. $288.7 million 2023); net income: $13.3 million (vs. $89.7 million).

• Q3 2024 Adjusted EBITDAX: $20.2 million (vs. $25.0 million Q3 2023); nine months Adjusted EBITDAX: $67.7 million (vs. $50.0 million 2023).

• Cash available for distribution for Q3 2024: $16.6 million (vs. $14.7 million Q3 2023).

• Q3 2024 oil production increased 20% year-over-year; natural gas production declined 11%.

Outlook and guidance

• Management expects continued commodity price volatility and inflationary pressure on costs.

• Williston assets expected to average 78% oil, 12% NGLs, 10% gas; EMEP development program results pending.

• 2024 capital budget for drilling, completion, and facilities is $20 million; flexibility to adjust based on market conditions.

• Anticipates maintaining current debt levels and funding distributions, debt service, and capital program from operations and credit facility.