Company Performance - TXO Partners LP's shares have gained 2.4% over the past month, outperforming the Oils-Energy sector's loss of 7.9% and lagging behind the S&P 500's gain of 4.43% [1] - The company's full-year Zacks Consensus Estimates project earnings of $1.63 per share and revenue of $329.46 million, indicating year-over-year changes of +21.64% for earnings and -13.46% for revenue [2] - In the latest trading session, TXO ended at $20.92, showing no change from the previous close, while the S&P 500 experienced a daily loss of 1.39% [6] Earnings Expectations - TXO's upcoming earnings disclosure is anticipated, with projected earnings per share (EPS) of $0.19, reflecting a significant 337.5% increase from the same quarter last year, and expected revenue of $63.78 million, a 5.47% increase compared to the year-ago quarter [7] - Recent changes to analyst estimates for TXO indicate a positive outlook, with revisions reflecting optimism about the company's business and profitability [8] Valuation Metrics - TXO Partners LP has a Forward P/E ratio of 12.87, which is in line with the industry average, suggesting no significant deviation in valuation compared to peers [4] - The Zacks Rank system, which evaluates stocks from 1 (Strong Buy) to 5 (Strong Sell), currently ranks TXO as 1 (Strong Buy), with a 26.95% increase in the consensus EPS estimate over the last 30 days [9] Industry Context - TXO operates within the Energy and Pipeline - Master Limited Partnerships industry, which has a Zacks Industry Rank of 102, placing it in the top 41% of over 250 industries [10]

TXO Partners LP (TXO) closed the most recent trading day at $21.21, moving +0.38% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.88% for the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 1.95%. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.63 per share and revenue of $329.46 million. These totals would mark changes of +21.64% and -13.46%, respectively, from last year. The Zac ...

Group 1: Company Performance - TXO Partners LP has gained approximately 12.9% year-to-date, outperforming the average return of 4.3% for Oils-Energy companies [3] - The Zacks Consensus Estimate for TXO's full-year earnings has increased by 32.5% over the past 90 days, indicating improving analyst sentiment and a positive earnings outlook [7] - TXO Partners LP is currently ranked 1 (Strong Buy) in the Zacks Rank system, suggesting strong potential for future performance [2] Group 2: Industry Context - TXO belongs to the Energy and Pipeline - Master Limited Partnerships industry, which includes 3 individual stocks and is currently ranked 4 in the Zacks Industry Rank [8] - The Oils-Energy group, which includes TXO, is ranked 13 within the Zacks Sector Rank, indicating a competitive position among 16 different sector groups [6] - The overall Oils-Energy sector has seen an average return of 4.3% this year, while the industry of Western Midstream has moved up by 33% since the beginning of the year [5][6]

Company Performance - TXO Partners LP closed at $21.93, reflecting a +0.14% change from the previous session, outperforming the S&P 500's daily gain of 0.09% [1] - Over the past month, TXO shares gained 3.35%, surpassing the Oils-Energy sector's loss of 0.69% and the S&P 500's gain of 2.83% [1] Upcoming Earnings - Analysts expect TXO Partners LP to report earnings of $0.26 per share, indicating a year-over-year growth of 425% [2] - The consensus estimate for revenue is $64.42 million, representing a 6.53% increase from the same quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates project earnings of $1.28 per share and revenue of $277.94 million, reflecting shifts of -4.48% and -27% from the previous year, respectively [3] - Recent adjustments to analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating analysts' confidence in the company's performance [3] Valuation Metrics - TXO Partners LP has a Forward P/E ratio of 17.11, which is a premium compared to the industry's average Forward P/E of 14.68 [6] - The Energy and Pipeline - Master Limited Partnerships industry is part of the Oils-Energy sector and currently holds a Zacks Industry Rank of 97, placing it in the top 39% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record of outperforming, with stocks rated 1 producing an average annual return of +25% since 1988 [5] - TXO Partners LP currently holds a Zacks Rank of 4 (Sell), with a 3.76% decline in the Zacks Consensus EPS estimate over the past month [5]

Operations and Market Focus - The company operates primarily in the Permian Basin and San Juan Basin, focusing on the acquisition and development of oil and natural gas reserves[86]. - The company anticipates continued volatility in crude oil and natural gas markets, which will significantly impact revenue and profitability[90]. - The company faces risks from commodity price volatility, regulatory changes, and geopolitical issues, which could materially affect operations and financial results[80]. Financial Performance - Total revenues decreased by $91.0 million, or 57%, from $158.4 million in Q1 2023 to $67.4 million in Q1 2024, primarily due to a 78% decrease in the average selling price of natural gas[110]. - Net income for Q1 2024 was $10.3 million, compared to $83.8 million in Q1 2023, reflecting a significant decline in profitability[105]. - Operating income fell to $2.7 million in Q1 2024 from $78.8 million in Q1 2023, indicating a substantial drop in operational performance[105]. Cash Flow and Distribution - Cash available for distribution increased to $22.8 million in Q1 2024 from a negative $9.1 million in Q1 2023[105]. - The company declared a quarterly cash distribution of $0.65 per unit for Q1 2024, to be paid on May 29, 2024[122]. - Net cash provided by operating activities increased to $25.2 million in Q1 2024 from $17.1 million in Q1 2023[127]. Expenses and Cost Management - Production expenses decreased by $2.2 million, or 6%, from $35.3 million in Q1 2023 to $33.1 million in Q1 2024[111]. - General and administrative expenses rose by $0.4 million, or 19%, from $2.2 million in Q1 2023 to $2.7 million in Q1 2024, primarily due to higher personnel costs[116]. - The company is focused on maintaining operational efficiency and managing costs in a challenging economic environment, particularly in light of supply chain constraints[91]. Capital Expenditures and Investments - Capital expenditures, including acquisitions, were $3.0 million in Q1 2024, down from $12.4 million in Q1 2023[123]. - The company incurred approximately $4.8 million for drilling, completion, and recompletion activities in the three months ended March 31, 2024, with a budget of $20.0 million to $28.0 million for such costs in 2024[123]. - The company has budgeted for capital expenditures of $3.0 million for the three months ended March 31, 2024, down from $12.4 million in the same period of 2023[123]. Economic Environment and Inflation - Inflation has been a major concern, with the U.S. experiencing the highest inflation rate in 40 years, affecting costs related to salaries, materials, and energy[91]. - The company is implementing strategies to mitigate inflationary pressures, particularly focusing on securing supplies of critical materials like fuel and steel[92]. Debt and Financial Ratios - Outstanding borrowings under the Credit Facility decreased to $19.0 million at March 31, 2024, from $21.0 million at December 31, 2023[121]. - The company had $19.0 million in debt outstanding and $146.0 million available under its Credit Facility as of March 31, 2024[136]. - The weighted average interest rate on Credit Facility borrowings was 8.6% for the three months ended March 31, 2024[133]. - 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[135].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-K __________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-04321 __________________________________ TXO Partners, L.P. (Exact name of regi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-04321 TXO Partners, L.P. (Exact name of registrant as specified in its charter) Delaware 32- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-04321 TXO Partners, L.P. (Exact name of registrant as specified in its charter) Indicate by check ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-04321 (817) 334-7800 (Registrant's telephone number, including area code) Securities registered ...

Company Operations and Strategy - The company focuses on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America, primarily in the Permian Basin and San Juan Basin[32]. - The management team has an average of 32 years of experience in the oil and gas industry, successfully completing acquisitions totaling over $15 billion[35]. - The company aims to maintain a flat to low growth production profile, offsetting natural declines through acquisitions and drilling[34]. - The company emphasizes maximizing hydrocarbon recovery through enhanced production techniques and expanding geologic investigations[38]. - The company plans to focus on enhancing existing production in 2023, expecting to fund capital development programs from cash flow from operations[49]. - The company expects to drill or participate in the drilling of approximately 22 gross wells in the Permian Basin and 14 gross wells in the San Juan Basin in 2023[41][45]. - The company drilled or participated in the drilling of approximately 6 gross wells in the Permian Basin during 2022, with an expectation to drill approximately 22 gross wells in 2023[62]. - The company produced an average of approximately 23,195 barrels of oil equivalent per day (Boe/d) in 2022, with 70% of production from assets operated by the company[40]. - The company incurred $29.8 million in development capital in 2022 and expects to incur approximately $30.0 - $35.0 million for development in 2023[47]. - The company spent approximately $25.6 million to drill 24 gross wells in 2022, with $18.9 million allocated to the Permian Basin and $10.9 million to the San Juan Basin[48]. Financial Performance and Projections - The development budget for 2023 is approximately $30.0 - $35.0 million, with funding primarily from operating cash flow and potential borrowings under the Credit Facility for acquisitions[34]. - For the year ended December 31, 2022, consolidated revenues were derived 48% from oil, 40% from natural gas, and 12% from NGL revenues, with total average production being approximately 23,195 Boe/d[46]. - The company’s PV-10 value as of December 31, 2022, was approximately $2.01 billion, reflecting the present value of estimated future cash inflows from proved oil and gas reserves[53]. - The company has a strong liquidity profile with little to no debt, allowing for effective capital allocation and growth in reserves and production[39]. - The company expects future development costs for PUDs to total $154.6 million from 2023 to 2027[63]. Reserves and Production - As of December 31, 2022, the company had total estimated proved reserves of approximately 143 million barrels of oil equivalent (MMBoe), with 53% being liquids and 83% proved developed[40]. - As of December 31, 2022, the company reported proved undeveloped reserves of 18,837.2 MBbls of oil, 1,208.8 MBbls of NGLs, and 22,688.6 MMcf of natural gas, totaling 23,827.4 MBoe[59]. - The company converted 483.5 MBoe of proved undeveloped reserves into proved developed reserves in 2022, with development costs incurred amounting to $29.8 million[61]. - Total production in 2022 was 8,466 MBoe, an increase from 7,220 MBoe in 2021[65]. - The company owned interests in 18,269 productive wells as of December 31, 2022, with 4,528 gross wells in total[68]. Regulatory and Compliance Risks - The company is subject to risks including commodity price volatility, regulatory changes, and environmental matters that could materially affect operations and financial results[18][23]. - The company is required to hedge at least 75% of projected production for the 12-month period following January 1, 2022, under its Credit Facility[87]. - The company is subject to various federal, state, and local laws and regulations that can increase operational costs and affect profitability[98]. - The company faces increasing regulatory burdens that may restrict oil and natural gas production rates, potentially affecting profitability[115]. - The company is required to comply with anti-market manipulation laws, with civil penalties for violations potentially reaching up to approximately $1,496,035 per violation per day[104][112]. - The company is subject to potential project delays and additional compliance costs due to uncertainties surrounding the implementation of the revised "waters of the United States" (WOTUS) rule, which may impose new permitting obligations[124]. Environmental and Climate Change Considerations - The Biden Administration's climate change initiatives may lead to increased costs for oil and natural gas production, with a roadmap established for net-zero emissions by 2050[117]. - The Inflation Reduction Act imposes a fee on GHG emissions starting at $900 per ton in 2024, increasing to $1,500 per ton in 2026, which may affect capital attraction for the oil and gas industry[135]. - The company may incur costs to comply with new GHG emissions regulations, which could delay operations and negatively impact competitive advantage[137]. - The company is facing increased litigation risks related to seismic events associated with underground injection wells, which could lead to additional costs[127]. - Increased concentrations of greenhouse gases (GHGs) may lead to significant physical effects, including more frequent and severe storms, which could adversely affect exploration and production operations[139]. Employee Relations and Workforce - As of December 31, 2022, the company had 191 total employees, with 180 being full-time[151]. - The company has no collective bargaining agreements and has not experienced any strikes or work stoppages, indicating satisfactory employee relations[151]. - The company is focused on attracting and retaining top talent, providing a welcoming and inclusive environment for its workforce[152].