TXO Partners Reports 57% Revenue Growth to $89.9 Million in Latest Quarter

TXO Partners, L.P. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $89.9 million for the three months ended June 30, 2025, a 57% increase from $57.3 million in the same period last year. For the first half of 2025, revenues totaled $174.2 million, up 40% from $124.7 million in the prior year. The increase was primarily driven by a 407 MBoe rise in production, largely attributed to recent acquisitions in the Williston Basin, and a notable 73% increase in the average selling price of natural gas, which contributed an additional $5.7 million to revenue.

Despite the revenue growth, TXO Partners reported a net loss of $135,000 for the second quarter, compared to a net income of $2.8 million in the same quarter of 2024. The company’s total expenses also rose significantly, increasing from $67.4 million to $93.6 million year-over-year, driven by higher production costs and increased depreciation, depletion, and amortization expenses, which more than doubled due to the new asset acquisitions. General and administrative expenses also saw a 106% increase, reflecting higher personnel costs and acquisition-related expenses.

Strategically, TXO Partners completed the acquisition of oil and gas assets from White Rock Energy, LLC for $338.6 million, which closed on July 31, 2025. This acquisition is expected to enhance the company’s production capabilities and overall asset base. 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 reduce outstanding debt. As of June 30, 2025, TXO Partners had reduced its long-term debt to $19.1 million from $157.1 million at the end of 2024.

Operationally, TXO Partners reported an increase in production volumes, with total production reaching 2,367 MBoe for the second quarter, compared to 1,960 MBoe in the same quarter of 2024. The company’s average daily production also improved, reflecting the successful integration of newly acquired assets. However, the average selling price for oil and condensate decreased by 23%, which negatively impacted revenue despite the overall production increase. The company’s cash flow from operating activities increased to $57.5 million for the first half of 2025, up from $48.1 million in the prior year.

Looking ahead, TXO Partners anticipates continued volatility in commodity prices, which will impact revenue and profitability. The company plans to leverage its cash flows to support capital expenditures, debt repayment, and distributions to unitholders. Management remains focused on optimizing operations and exploring further acquisition opportunities to enhance growth and shareholder value. The company has expressed confidence in its ability to navigate market challenges while maintaining adequate liquidity and financial stability.