TXONYSECrude Petroleum & Natural GasUS GAAP · USD

TXO Partners, L.P.

TXO Partners, L.P. is a U.S.-based publicly traded limited partnership that produces crude oil, natural gas, and natural gas liquids from long-lived oil and gas properties. The partnership sells its production through short-term arm’s-length arrangements and operates as a production-and-distribution business with a focus on legacy asset management, development, and acquisitions.

Revenue401m USD
+40.5 %y/y
Operating profit (EBIT)-30.6m USD
−345.7 %y/y
EBIT margin-7.6%
−5.2 ppy/y
Net income-21.6m USD
−192.0 %y/y
Free cash flow118m USD
+8.1 %y/y

Fiscal year 2025 · change from previous year

Development 2021–2025

-2000200400600m USD2021: 228 m USD2021: EBIT 44 m USD20212022: 450 m USD2022: EBIT -26 m USD20222023: 381 m USD2023: EBIT -124 m USD20232024: 285 m USD2024: EBIT -6.9 m USD20242025: 401 m USD2025: EBIT -31 m USD2025401-31
RevenueOperating profit (EBIT)

Business

Share of revenue
Crude oil sales70 %

Sales of produced crude oil from the partnership's operated and non-operated properties.

Natural gas sales21 %

Sales of produced natural gas sold into established regional markets.

Natural gas liquids sales9 %

Sales of NGL volumes extracted and marketed alongside oil and gas production.

Products

Reported · share of revenue
70.8%20.4%8.8%FY2025100 %
  • Oil and Condensate70.8 %
  • Natural Gas Reserves20.4 %
  • Natural Gas Liquids Reserves8.8 %

Source: 10-K/A FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

TXO sells production to a relatively small number of commodity purchasers, including marketers and large energy buyers, under short-term contracts. Customer demand is driven by the need for fungible crude oil, natural gas, and NGL supply rather than end-user branding or long-term service relationships.

Large commodity purchasers

Buy crude oil, natural gas and NGL volumes for resale or processing; important because a few buyers account for a large share of revenue.

Energy marketers and aggregators

Purchase production under short-term contracts and move volumes into broader market channels.

Derivative counterparties

Financial institutions that transact commodity swaps used to hedge price exposure.

Strategy

TXO's strategy is to manage a long-lived production base with disciplined capital allocation across development, acquisitions, debt repayment, and cash distributions. The partnership frames itself as a production-and-distribution enterprise, using operating cash flow, hedging, and capital budgeting to support legacy assets over time.

Capital allocation disciplineShort term

The business depends on choosing between development, acquisitions, debt reduction and distributions.

Production and distribution modelMedium term

Cash generation from legacy assets supports both reinvestment and unitholder distributions.

Commodity risk managementShort term

Hedging helps stabilize cash flows exposed to volatile oil and gas prices.

Geography

TXO Partners is a U.S. upstream producer, so its operations, production, and sales are concentrated in domestic oil and gas basins and U.S. commodity markets. The business depends on local pipeline access, processing capacity, and regional market conditions that affect realized prices and takeaway for oil, gas, and NGLs.

Risks

TXO is exposed to commodity price volatility, production declines, and the availability of market outlets for its oil, gas, and NGL volumes. Its concentrated customer base, derivative counterparty exposure, infrastructure dependence, and reserve-based accounting estimates can all materially affect cash available for distribution and reported results.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Commodity price volatility1Reserve and impairment risk2Customer concentration3Infrastructure and market access4Derivative counterparty risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Commodity price volatilityImpact: HighLikelihood: High

    Oil, gas and NGL prices directly affect realized revenue, cash flow and distributions.

    ExposureCrude oilNatural gasNGL sales
  2. Reserve and impairment riskImpact: HighLikelihood: High

    Lower commodity prices or reserve revisions can trigger long-lived asset impairments.

    Exposure: Proved oil and gas properties

  3. Customer concentrationImpact: HighLikelihood: Medium

    A few purchasers account for a large portion of revenue, so buyer loss or distress could reduce sales.

    ExposureChevron USAGunvor USAPlains All American
  4. Infrastructure and market accessImpact: MediumLikelihood: Medium

    Production depends on pipelines, processing plants and regional takeaway capacity.

    Exposure: Domestic oil and gas basins

  5. Derivative counterparty riskImpact: MediumLikelihood: Low

    Hedging reduces price risk but introduces exposure to financial counterparties and settlement obligations.

    Exposure: Commodity swaps and master netting arrangements

Accounting

Judgemental items
Unit-of-production DD&A

Depreciation and depletion depend on estimated proved reserves and production volumes, affecting operating expense timing.

Impact: Reported earnings and asset carrying values

Long-lived asset impairment

Recoverability is tested against future cash flows using commodity price and reserve assumptions.

Impact: Potential write-downs of producing properties

Commodity derivative accounting

Hedging contracts are marked to fair value, creating non-cash gains and losses.

Impact: Revenue and earnings volatility

Asset retirement obligations

Future plugging and abandonment costs require estimates that can change over time.

Impact: Liabilities and accretion expense

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026