Company Performance - TXO Partners LP's stock closed at $19.15, reflecting a -1.08% change from the previous trading day's closing, underperforming compared to the S&P 500's daily loss of 0.29% [1] - The stock has increased by 16.14% over the past month, contrasting with the Oils-Energy sector's decline of 1.71% and the S&P 500's gain of 2.52% [1] Earnings Forecast - The upcoming earnings report for TXO Partners LP is anticipated to show earnings per share (EPS) of $0.30, indicating a significant decrease of 69.39% from the same quarter last year [2] - Revenue is projected to be $85.93 million, reflecting a 6.57% decline compared to the equivalent quarter last year [2] Analyst Revisions - Recent revisions to analyst forecasts for TXO Partners LP should be monitored, as they often reflect short-term business trends and can indicate analysts' confidence in the company's performance [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 ranked stocks have yielded an average annual return of +25% since 1988 [5] - TXO Partners LP currently holds a Zacks Rank of 1 (Strong Buy), with the Zacks Consensus EPS estimate having increased by 15.19% in the past month [5] Valuation Metrics - TXO Partners LP has a Forward P/E ratio of 11.88, which aligns with the industry's average Forward P/E of 11.88 [6] - The Energy and Pipeline - Master Limited Partnerships industry is part of the Oils-Energy sector and currently holds a Zacks Industry Rank of 31, placing it in the top 13% of over 250 industries [6] Industry Insights - The Zacks Industry Rank measures the strength of individual industry groups based on the average Zacks Rank of stocks within those groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - Low-beta stocks are identified as resilient during market volatility, making them a strategic choice for investors in turbulent times [1][2][3] - A curated portfolio of low-beta stocks can provide a safeguard against market fluctuations, enhancing resilience for investors [3] Stock Analysis - **Mission Produce**: A leader in the avocado industry, positioned to benefit from rising consumer demand for healthy eating, particularly avocados which are rich in vitamins and minerals [9] - **TXO Partners**: Operates in the oil-rich Permian Basin, with significant potential from its Mancos Shale project, which could increase reserves fivefold, targeting a 3,520-acre block estimated to hold 200-300 Bcf of natural gas [10] - **Penumbra**: Focuses on innovative solutions for complex medical conditions, including ischemic stroke and venous thromboembolism, enhancing patient outcomes with advanced thrombectomy technologies [11] - **Strategic Education**: Exhibits strong growth across various segments, driven by increasing enrollment and operational efficiency, with a solid financial position and rising revenues [12] Screening Criteria - Stocks with a beta between 0 and 0.6 are prioritized for being less volatile than the market [6] - Additional criteria include positive price movement over the last month, average trading volume greater than 50,000, a minimum price of $5, and a Zacks Rank of 1 indicating strong buy potential [7]

Group 1 - TXO Partners LP closed at $17.80, reflecting a +0.68% change from the previous day, outperforming the S&P 500's gain of 0.12% [1] - The stock has increased by 10.09% over the past month, significantly better than the Oils-Energy sector's decline of 8.42% and the S&P 500's loss of 3.45% [1] Group 2 - TXO Partners LP is expected to report earnings of $0.31 per share, which would be a year-over-year decline of 68.37%, with projected revenue of $85.93 million, indicating a 6.57% decrease compared to the same quarter last year [2] - Recent changes to analyst estimates for TXO Partners LP are crucial as they reflect the evolving business trends, with upward revisions indicating analysts' positive outlook on the company's operations [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows that TXO Partners LP currently holds a Zacks Rank of 1 (Strong Buy), with a consensus EPS projection that has increased by 19.43% in the past 30 days [5] - TXO Partners LP has a Forward P/E ratio of 10.46, which is lower than its industry's Forward P/E of 10.76, indicating a valuation discount [6] Group 4 - The Energy and Pipeline - Master Limited Partnerships industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 193, placing it in the bottom 24% of over 250 industries [6][7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - TXO Partners LP has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance Indicators - For the fiscal year ending December 2024, TXO Partners LP is expected to earn $0.76 per share, reflecting a decrease of 43.3% from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for TXO Partners LP has increased by 20.7%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of TXO Partners LP to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

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 ...