TXO Partners Reports 68% Revenue Increase to $150.9 Million in Latest Quarter

TXO Partners, L.P. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $150.9 million for the three months ended June 30, 2026, a 68% increase from $89.9 million in the same period last year. The surge in revenue was primarily driven by a 228 MBoe increase in production, largely attributed to the acquisition of assets in the Williston Basin, and a 58% rise in the average selling price of oil, which contributed an additional $31.3 million to revenue. However, the company reported a net income of $60.8 million for the quarter, a stark contrast to a net loss of $135,000 in the prior year, showcasing a turnaround in profitability.

In the first half of 2026, TXO Partners generated total revenues of $179.1 million, a slight increase of 3% compared to $174.2 million in the same period of 2025. This growth was supported by a production increase of 805 MBoe, despite challenges such as decreased production from the sale of Cross Timbers Energy assets and natural declines in other areas. The company faced a net loss of $13.6 million for the six months ended June 30, 2026, compared to a net income of $2.3 million in the previous year, primarily due to significant losses from hedging activities.

Strategically, TXO Partners has been active in asset management, completing three significant transactions involving the sale of oil and gas properties through its joint venture, Cross Timbers Energy. These transactions, which totaled approximately $200 million, have begun to wind down the joint venture, with net proceeds of $95 million received in July 2026. The company plans to utilize these proceeds to pay down debt and fulfill deferred payment obligations related to previous acquisitions.

Operationally, TXO Partners reported an increase in production volumes, with oil and condensate sales rising to 1,206 MBbls in the second quarter of 2026, up from 874 MBbls in the same quarter of 2025. The company also noted a decrease in production expenses per Boe, which fell from $18.30 to $15.97, reflecting improved operational efficiency. The total employee headcount remained stable, supporting ongoing operations across its various assets located primarily in the Permian Basin, San Juan Basin, and Williston Basin.

Looking ahead, TXO Partners anticipates continued volatility in the oil and natural gas markets, influenced by geopolitical factors and commodity price fluctuations. The company plans to focus on optimizing its capital expenditures and managing its debt levels while maintaining flexibility in its operations. Management expressed confidence in the ability to fund distributions and meet financial obligations through cash flows generated from operations, despite the challenges posed by market conditions.