TXO Partners (TXO) Q4 2025 earnings summary

Executive summary

• Focused on acquisition, development, and exploitation of conventional oil, natural gas, and NGL reserves in North America, with core operations in the Permian, San Juan, and Williston Basins.

• Completed significant acquisitions in the Williston Basin, including the $331.6M WRE Acquisition in July 2025, funded by equity and credit facility borrowings.

• Announced pending Cross Timbers asset sales, expected to generate $40M in proceeds in 2026.

• Partnership agreement requires distribution of all available cash each quarter, with distributions varying based on business performance and commodity prices.

Financial highlights

• 2025 revenues increased 42% year-over-year to $401.0M, driven by higher production and natural gas prices, offset by lower oil and NGL prices.

• Net loss of $21.6M in 2025, compared to net income of $23.5M in 2024, primarily due to a $42.4M impairment charge and higher expenses.

• Adjusted EBITDAX rose to $142.1M in 2025 from $108.7M in 2024.

• Cash available for distribution was $54.8M in 2025, down from $79.1M in 2024.

• Production averaged 28,268 Boe/d in 2025 (40% oil, 45% natural gas, 15% NGLs).

• Proved reserves at year-end 2025 were 129.1 MMBoe, with a standardized measure of $1.10B.

• Asset retirement obligation at year-end 2025 was $221.1M.

Outlook and guidance

• 2026 development capital budget set at $70M, focused on drilling and recompletions, primarily in the Williston and San Juan Basins.

• Expect to fund 2026 capital program and distributions from operating cash flow.

• Anticipate continued volatility in oil and gas prices, with inflationary pressures on costs expected to persist.

• Cross Timbers asset sales expected to close in Q2 2026, with proceeds used to pay deferred acquisition obligations.