**TXO Partners, L.P. Reports Fiscal Year 2025 Results**
TXO Partners, L.P. (NYSE: TXO) today released its financial results for the fiscal year ended December 31, 2025, reporting total revenues of $401.0 million, a 42% increase compared to $282.8 million in 2024. This increase was primarily driven by a rise in production volumes, which contributed $96.1 million to revenue, largely due to the acquisition of producing assets in the Williston Basin. Additionally, higher natural gas prices, excluding the effects of derivatives, increased revenue by $15.9 million. Net gains on hedging activity also positively impacted revenue by $40.4 million. These gains were partially offset by a decrease in average selling prices for oil and NGLs, which reduced revenue by $30.8 million and $3.5 million, respectively. The company reported a net loss of $21.6 million, compared to a net income of $23.5 million in the previous year.
Key operational developments included an average daily production of 28,268 Boe/d in 2025, with 40% oil, 45% natural gas, and 15% NGLs. The company drilled or participated in the drilling of 31 gross wells during the year, with 11 in the Permian Basin, 8 in the San Juan Basin, and 11 in the Williston Basin. Proved reserves were estimated at 129.1 MMBoe as of December 31, 2025, with 60% liquids and 80% proved developed. The company's development budget for 2026 is projected to be approximately $70 million, primarily focused on drilling and recompletion work in the Williston Basin.
The company's financial performance was also affected by several factors impacting expenses. Production expenses increased by 24% to $186.2 million, primarily due to the Williston Basin acquisitions and higher maintenance and personnel costs. Taxes, transportation, and other expenses rose by 14% to $68.8 million, driven by increased production volumes and natural gas prices. Depreciation, depletion, and amortization (DD&A) increased significantly by 84% to $96.6 million, mainly due to the higher DD&A rate associated with the Williston Basin assets. An impairment of long-lived assets of $42.4 million was recorded, related to assets in the Permian Basin within the Cross Timbers joint venture. General and administrative expenses also increased by 48% to $21.5 million, primarily due to higher personnel costs and professional fees.
Looking ahead, TXO Partners anticipates continued volatility in commodity markets and plans to maintain a disciplined approach to capital allocation. The company intends to balance investments in development projects, strategic acquisitions, and cash distributions to unitholders. The company's strategy includes opportunistically hedging a portion of its production to mitigate exposure to commodity price fluctuations. The company's estimated proved reserves were determined using average first-day-of-the-month prices for the prior 12 months in accordance with SEC regulations. The unweighted arithmetic average first-day-of-the-month prices for the prior 12 months were $65.34 per barrel for oil and $3.39 per MMBtu for natural gas at December 31, 2025.
About TXO Partners, L.P.
TXO Partners, L.P. is an oil and natural gas exploration and production company focused on acquiring, developing, and optimizing long-lived, conventional assets in North America. Its core operations are in the Permian, San Juan, and Williston Basins, emphasizing low-decline reserves, efficient exploitation, and strategic acquisitions. The company generates revenue through the sale of oil, natural gas, and NGLs, primarily serving North American energy markets with a value proposition rooted in stable, low-risk assets and experienced management.
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