TXO Partners Reports 47% Revenue Growth to $100.9 Million in Latest Quarter

TXO Partners, L.P. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $100.9 million for the three months ended September 30, 2025, a 47% increase from $68.7 million in the same period last year. For the nine months ended September 30, 2025, revenues totaled $275.1 million, up 42% from $193.5 million in the prior year. The increase in revenue was primarily driven by a 1,210 MBoe rise in production, largely attributed to the acquisition of producing assets in the Williston Basin, despite natural declines in other areas. The company also reported net income of $4.4 million for the third quarter, compared to a modest profit of $203,000 in the same quarter of 2024.

The financial results reflect a notable shift in operational efficiency, with production expenses increasing by 21% to $47.9 million in the third quarter, primarily due to the new assets. However, on a per unit basis, production costs decreased slightly from $18.73 to $18.23 per Boe sold, indicating improved operational leverage. The company also experienced a significant rise in depreciation, depletion, and amortization expenses, which surged 75% to $23.7 million, reflecting the higher production rates from the newly acquired properties.

Strategically, TXO Partners completed the acquisition of oil and gas assets from White Rock Energy, LLC, for $338.6 million in July 2025, which included a deferred payment of $70 million due in 2026. This acquisition is expected to enhance the company’s production capabilities and market position. Additionally, the company successfully raised approximately $189.5 million through a public offering in May 2025, which was utilized to fund part of the acquisition and repay outstanding debt.

Operationally, TXO Partners reported an increase in production volumes, with total production reaching 2,626 MBoe in the third quarter, compared to 2,105 MBoe in the same quarter of 2024. The company’s average selling prices for natural gas increased by 34%, contributing to revenue growth, while oil prices saw a decline of 13%. The company’s total assets rose to $1.38 billion as of September 30, 2025, up from $1.03 billion at the end of 2024, reflecting the impact of the recent acquisitions.

Looking ahead, TXO Partners anticipates continued volatility in commodity prices, which will influence its revenue and profitability. The company plans to leverage its cash flows from operations to fund capital expenditures and maintain distributions to unitholders. Management remains focused on optimizing its asset base and managing costs effectively to navigate the challenges posed by fluctuating market conditions. The company believes it has adequate liquidity to support its operations and growth initiatives over the next twelve months.