TXO Partners (TXO) Q3 2025 earnings summary

Executive summary

• Revenue for the three months ended September 30, 2025, increased 47% year-over-year to $100.9 million, driven by higher production volumes and natural gas prices, partially offset by lower oil and NGL prices.

• Net income for the quarter was $4.4 million, up from $0.2 million in the prior year period, reflecting improved operating results and gains from hedging activities.

• Major acquisitions in the Williston Basin contributed significantly to production and revenue growth.

Financial highlights

• Total revenues for the nine months ended September 30, 2025, were $275.1 million, up 42% from $193.5 million year-over-year.

• Net income for the nine-month period was $6.6 million, down from $13.3 million in the prior year, due to higher expenses and interest costs.

• Adjusted EBITDAX for the quarter was $32.8 million, compared to $20.2 million in the prior year quarter.

• Cash available for distribution for the quarter was $7.5 million, down from $16.6 million year-over-year.

• Production expenses increased 21% to $47.9 million for the quarter, mainly due to new assets.

• Interest expense rose 142% to $4.5 million for the quarter, reflecting increased borrowings.

Outlook and guidance

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

• Capital expenditures for 2025 are budgeted at approximately $65 million for drilling, completion, and facilities.

• The company anticipates funding distributions, debt obligations, and capital programs from operating cash flow, recent equity offering, and credit facility borrowings.