TXO Partners LP Dossier
Qualitative Analysis
Business overview
TXO Partners, L.P. (NYSE: TXO) is a master limited partnership (MLP) focused on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid (NGL) reserves in North America. The partnership's core acreage positions are concentrated in three premier low-risk basins: the Permian Basin of West Texas and New Mexico, the San Juan Basin of New Mexico and Colorado, and the Williston Basin of Montana and North Dakota. TXO's assets are characterized by long-lived reserves, low base decline rates, and high reservoir recoveries relative to drilling and completion costs, enabling predictable production and steady distributions for its unitholders.
Research as of 19 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Focusing the vast majority of the 2026 discretionary capital expenditure budget on drilling and completion activities in the Elm Coulee field of the Williston Basin to exploit high oil-in-place targets.
Expected impact: Aims to drive organic production growth, optimize conventional well recovery, and generate stable free cash flow to support the partnership's variable distribution policy.
Monetizing substantially all oil and gas properties owned by the 50%-owned Cross Timbers Energy joint venture through multiple purchase and sale agreements with private buyers, including CTOC Energy.
Expected impact: Expected to generate approximately $100 million in net proceeds to TXO Partners, which will be used to fund the $70 million deferred payment to White Rock Energy and strengthen overall liquidity.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Recent Acquisitions
Acquisition of producing conventional oil and gas assets in the Elm Coulee field of the Williston Basin (Montana and North Dakota) to complement TXO's existing footprint, adding high-margin liquid production and substantial proved reserves.
Financial impact: Added approximately 6,800 daily barrels of oil equivalent production (~93% liquids) and 25,000 Mboe of Proved Developed reserves. The transaction structure included a $70 million deferred payment due on July 31, 2026.
Acquisition of conventional producing assets in the Elm Coulee field (Montana) and Russian Creek field (North Dakota) to establish a core operating position in the Williston Basin.
Financial impact: Funded via $243 million in cash and 2.5 million TXO common units. Added approximately 4,500 daily barrels of oil equivalent production (~90% liquids) and 17,000 Mboe of Proved Developed reserves.
Strategic Partnerships
North Hudson partnered with TXO to acquire a 30% non-operated interest in the White Rock assets, reducing TXO's upfront capital requirement while allowing TXO to operate the properties.
Terms: North Hudson acquired a 30% non-operated interest, bringing the total transaction value of the combined acquisition to $475 million, of which TXO's share was $350 million.