Core Viewpoint - TXO Partners L.P. has recently reported its Q3 financial results, prompting an analysis of the company's performance and future outlook in both macroeconomic and microeconomic contexts [1]. Financial Performance - The article focuses on the Q3 numbers reported by TXO Partners L.P., indicating a need for a detailed examination of these results to understand the company's financial health and operational efficiency [1]. Investment Strategy - The investment approach discussed emphasizes a long-term horizon, typically ranging from 5 to 10 years, with a preference for a diversified portfolio that includes growth, value, and dividend-paying stocks, although there is a stronger inclination towards value investments [1].

Acquisition and Production - The company completed the acquisition of producing properties in the Williston Basin for a total cash consideration of $241.8 million and 2.5 million common units valued at $50.0 million[92]. - Average daily production from the acquired Williston assets is expected to consist of approximately 78% oil, 12% NGLs, and 10% gas[98]. - Total leasehold and mineral acreage increased from approximately 846,000 gross (372,000 net) to approximately 1,120,000 gross (550,000 net) due to the acquisitions[99]. - Total production for the three months ended September 30, 2024, was 2,105 MBoe, slightly up from 2,104 MBoe in the same period in 2023[109]. Financial Performance - Net income for the three months ended September 30, 2024, was $203,000, a decrease of 97.6% from $8.48 million in the same period in 2023[108]. - Total revenues decreased by $1.1 million, or 2%, from $69.9 million in Q3 2023 to $68.7 million in Q3 2024, primarily due to a 40% decrease in average selling price of natural gas and an 11% decrease in oil prices[110]. - Total revenues decreased by $95.3 million, or 33%, from $288.7 million for the nine months ended September 30, 2023, to $193.5 million for the same period in 2024[124]. - Average selling price of natural gas decreased by 67%, leading to a revenue decrease of $86.0 million, while oil and NGLs saw minor decreases of less than 1% and 1%, respectively[124]. Expenses and Costs - Production expenses rose by $3.8 million, or 11%, from $35.7 million in Q3 2023 to $39.4 million in Q3 2024, mainly due to costs associated with Williston Basin acquisitions[111]. - General and administrative expenses increased by $1.5 million, or 87%, from $1.8 million in Q3 2023 to $3.3 million in Q3 2024, driven by higher personnel costs[117]. - General and administrative expenses increased by $5.5 million, or 108%, from $5.1 million in 2023 to $10.5 million in 2024, mainly due to higher personnel costs[132]. - Depreciation, depletion, and amortization expenses increased by $3.0 million, or 28%, from $10.6 million in Q3 2023 to $13.6 million in Q3 2024, primarily due to Williston Basin production[115]. Cash Flow and Financing - Cash available for distribution increased to $16.57 million in Q3 2024 from $14.65 million in Q3 2023, representing a 12.3% increase[106]. - Net cash provided by operating activities increased by $9.1 million, from $59.7 million in 2023 to $68.8 million in 2024, due to decreased cash paid on derivatives[149]. - Outstanding borrowings under the Credit Facility were $148.0 million as of September 30, 2024, compared to $21.0 million at December 31, 2023[136]. - The company expects to fund distributions, meet debt obligations, and finance its 2024 capital development program from cash flow from operations and borrowings[145]. Market Conditions - NYMEX crude oil prices reached a high of $93.68 per Bbl and a low of $65.75 per Bbl from January 1, 2023, to September 30, 2024[94]. - Natural gas prices peaked at $4.17 per MMBtu in January 2023 and fell to $2.26 per MMBtu as of October 18, 2024[94]. - The company anticipates continued volatility in crude oil and natural gas markets, impacting revenue and profitability[95]. - Inflationary pressures on operating costs are expected to persist, particularly for steel, chemicals, and transportation[97]. Debt and Credit Facilities - The company entered into Amendment No. 4 on its senior secured credit facility, increasing the borrowing base from $165 million to $275 million and extending the maturity date to August 30, 2028[151]. - The weighted average interest rate on Credit Facility borrowings was 8.80% for the nine months ended September 30, 2024[153]. - The company is required to maintain a current ratio greater than 1.0 to 1.0 and a total net debt-to-EBITDAX ratio not greater than 3.0 to 1.0[154]. Other Income - Other income increased by $1.1 million, or 22%, from $5.2 million in Q3 2023 to $6.3 million in Q3 2024, mainly from higher CO and plant income[119]. - Other income increased by $10.4 million, or 57%, from $18.2 million in 2023 to $28.6 million in 2024, driven by bonus payments and higher CO and plant income[134].

Group 1 - TXO Partners LP closed at $19.17, down 0.67% from the previous trading session, underperforming the S&P 500's gain of 0.16% [1] - Over the past month, TXO shares have decreased by 2.43%, while the Oils-Energy sector lost 9.36% and the S&P 500 gained 1.67% [1] Group 2 - TXO is expected to report an EPS of $0.07, reflecting a 74.07% decline year-over-year, with revenue estimated at $64.6 million, a decrease of 7.54% compared to the same quarter last year [2] - Full-year estimates predict earnings of $0.91 per share and revenue of $277.18 million, indicating year-over-year declines of 32.09% and 27.2%, respectively [3] Group 3 - Recent modifications to analyst estimates for TXO are crucial as they indicate changing near-term business trends, with positive revisions seen as a favorable sign for the company's outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently rates TXO as 5 (Strong Sell), with the consensus EPS estimate declining by 7.65% over the last 30 days [6] Group 4 - TXO Partners LP has a Forward P/E ratio of 21.33, which is higher than the industry average of 14.88, indicating a premium valuation [7] - The Energy and Pipeline - Master Limited Partnerships industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 248, placing it in the bottom 2% of over 250 industries [7]

Core Viewpoint - The market anticipates TXO Partners LP (TXO) will report a year-over-year decline in earnings due to lower revenues for the quarter ended September 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - TXO is expected to post quarterly earnings of $0.07 per share, reflecting a year-over-year decrease of 74.1% [3]. - Revenues are projected to be $64.6 million, down 7.5% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.39% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for TXO matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the potential deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - A positive Earnings ESP combined with a strong Zacks Rank (1, 2, or 3) has shown a nearly 70% success rate for predicting earnings beats [8]. Historical Performance - In the last reported quarter, TXO was expected to earn $0.19 per share but only achieved $0.09, resulting in a surprise of -52.63% [12]. - Over the past four quarters, TXO has beaten consensus EPS estimates twice [13]. Conclusion - TXO Partners LP does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making investment decisions ahead of the earnings release [16].

TXO Partners LP (TXO) ended the recent trading session at $18.87, demonstrating a -1.46% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.04%. Shares of the company witnessed a gain of 5.86% over the previous month, beating the performance of the OilsEnergy sector with its loss of 7.26% and the S&P 500's gain of 3.77%. The upcoming earnings release of TXO ...

TXO Partners LP (TXO) closed the latest trading day at $19.52, indicating a +0.36% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.33%. The company's stock has climbed by 6.58% in the past month, exceeding the Oils-Energy sector's loss of 2.26% and the S&P 500's gain of 5.36%. The upcoming earnings release of TXO Partners LP will be of great interest to investors. The company's earnings per share ...

In the latest trading session, TXO Partners LP (TXO) closed at $19.85, marking a +0.35% move from the previous day. This change outpaced the S&P 500's 0.93% loss on the day. Meanwhile, the Dow experienced a drop of 0.41%, and the technology-dominated Nasdaq saw a decrease of 1.53%. Prior to today's trading, shares of the company had lost 1.1% over the past month. This has was narrower than the Oils-Energy sector's loss of 2.51% and lagged the S&P 500's gain of 2.17% in that time. The upcoming earnings relea ...

In the latest market close, TXO Partners LP (TXO) reached $18.12, with a -1.47% movement compared to the previous day. This change lagged the S&P 500's daily gain of 1.07%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 2.17%. Heading into today, shares of the company had lost 10.42% over the past month, lagging the Oils-Energy sector's loss of 4.22% and the S&P 500's gain of 2.92% in that time. The upcoming earnings release of TXO Partners LP will be of great interes ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider TXO Partners LP (TXO) . This company, which is in the Zacks Energy and Pipeline - Master Limited Partnerships industry, shows potential for another earnings beat. When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 157.21%, on ave ...

Group 1: Company Overview - TXO Partners LP is one of 248 individual stocks in the Oils-Energy sector, currently ranked 13 in the Zacks Sector Rank [2] - The company belongs to the Energy and Pipeline - Master Limited Partnerships industry, which includes 3 companies and is ranked 102 in the Zacks Industry Rank [5] Group 2: Performance Metrics - TXO Partners LP has a year-to-date performance increase of approximately 10.6%, outperforming the average gain of 5.7% in the Oils-Energy group [7] - The Zacks Consensus Estimate for TXO's full-year earnings has increased by 15.6% over the past quarter, indicating improved analyst sentiment [7] Group 3: Comparison with Peers - Western Midstream (WES) is another stock in the Oils-Energy sector that has performed well, with a year-to-date increase of 36.6% and a Zacks Rank of 2 (Buy) [4][6] - Stocks in the Energy and Pipeline - Master Limited Partnerships industry have gained about 10.5% year-to-date, showing that TXO is performing better than its industry peers [5]