TXO Partners Announces Q4 2024 Distribution, 2025 Outlook & 10-K Filing
TXO Partners, L.P. has officially announced that its Board of Directors has approved a distribution of $0.61 per common unit for the fourth quarter of 2024. This distribution applies to the period ending December 31, 2024, and is scheduled for payment on March 21, 2025. Unitholders eligible for this payment must be on record as of the close of trading on March 14, 2025.
Bob R. Simpson, the Chairman and Chief Executive Officer of TXO Partners, expressed confidence in the company’s commitment to delivering strong financial returns to its investors. He emphasized that TXO is uniquely positioned in the production and distribution sector, focusing on both immediate cash distributions and long-term value creation per unit. “We strive to grow our distributions every year, and since going public in January 2023, TXO has delivered $4.49 per unit to holders,” Simpson noted. “Given our outlook, we are targeting a full-year distribution in excess of $2.45 per unit for the year ahead.”
TXO Partners operates with a strong commitment to financial discipline and long-term value growth. Brent Clum, the President of Business Operations and Chief Financial Officer of TXO, reiterated this approach by highlighting the company’s focus on strategic capital allocation. “Financial stewardship is the key component of the TXO strategy,” Clum stated. “Our intentional capital allocation generates cash flow through efficient operations, which in turn drives distributions and value creation per unit for our holders. As well, we are always on the lookout for accretive opportunities to grow within our operating footprint. We view the business of TXO through the lens of life-long owners, focusing on steady long-term success.”
This emphasis on financial prudence and strategic investments aligns with TXO’s broader operational goals. The company remains dedicated to leveraging its resources efficiently to maximize returns for investors while ensuring sustainable business expansion.
Gary D. Simpson, the President of Development and Production at TXO, provided further insight into the company’s asset portfolio and future development plans. He explained that TXO’s technical teams have identified a significant inventory of development opportunities across key regions, including the Permian Basin, the San Juan Basin, and the Williston Basin. “With our long-lived assets, our technical teams have identified a rich inventory of development opportunities across these basins,” Simpson said. “As we plan future capital programs, we are evaluating resource in excess of 50 million barrels of oil, along with the additional 3 Tcfe of natural gas potential in our Mancos Shale position. We believe this captured potential in aggregate represents multiples of our current booked reserve base.”
Simpson also outlined the specific strategies TXO is implementing to optimize its development activities. These include CO2 expansion projects, waterflood enhancements, and targeted drilling programs across all producing basins. He emphasized that the company’s ultimate goal is to achieve outstanding financial returns through confident investment decisions that sustain production levels and maintain reserve stability.
A crucial aspect of TXO’s success is its ability to capitalize on its extensive resource base while applying innovative and efficient production techniques. By focusing on proven reservoirs and leveraging advanced recovery methods, the company is positioned to maintain long-term production stability while enhancing its overall reserves. This approach aligns with TXO’s strategic vision of delivering consistent, high-value returns to unitholders.
The 2025 distribution outlook provided by TXO reflects its confidence in sustained operational success. Targeting a full-year distribution exceeding $2.45 per unit underscores the company’s ability to generate strong cash flows while maintaining a disciplined capital allocation strategy. TXO’s financial performance and its track record since going public further validate its approach to sustainable growth and shareholder value creation.
TXO has also filed its annual report on Form 10-K, providing a comprehensive overview of its financial performance, operational achievements, and strategic priorities. The report highlights key metrics, including production volumes, reserve estimates, capital expenditures, and financial results. This transparency ensures that investors have access to critical information that supports informed decision-making regarding their investments in TXO.
TXO remains focused on executing its strategic initiatives to drive growth and enhance value for its unitholders. The company’s leadership team is confident in its ability to navigate market dynamics and leverage its asset base for sustained profitability. With a strong commitment to operational excellence, disciplined financial management, and strategic growth, TXO is well-positioned to continue delivering robust returns to its investors in the coming years.
