TXO Energy Partners Announces 20% Dividend Increase to $0.36
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy TXO?
Source: seekingalpha
- Dividend Increase: TXO Energy Partners has declared a quarterly dividend of $0.36 per share, marking a 20% increase from the previous $0.30, reflecting the company's ongoing improvement in cash flow and profitability, which boosts investor confidence.
- Yield Advantage: The forward yield of 11.58% not only attracts income-seeking investors but also enhances the company's competitiveness among small-cap energy stocks, potentially driving the stock price higher.
- Shareholder Return Plan: The dividend is payable on May 22, with a record date of May 15 and an ex-dividend date also on May 15, ensuring shareholders can promptly benefit from this return, thereby increasing their loyalty to the company.
- Asset Disposal Strategy: TXO Partners plans to sell $20 million in oil and gas properties, a move that not only helps optimize the asset portfolio but may also provide additional funding to invest in high-return projects.
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Analyst Views on TXO
Wall Street analysts forecast TXO stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 12.500
Low
19.00
Averages
19.00
High
19.00
Current: 12.500
Low
19.00
Averages
19.00
High
19.00
About TXO
TXO Partners, L.P. is a master limited partnership focused on the acquisition, development, optimization and exploitation of conventional oil, natural gas, and natural gas liquids (NGL) reserves in North America. Its reserves are approximately 129 million barrels of oil equivalent (MMBoe), of which approximately 60% were liquids and 80% were proved developed, both on a Boe basis. Its assets consisted of approximately 1,294,761 gross (641,865 net) leasehold and mineral acres located primarily in the Permian Basin, San Juan Basin and Williston Basin. Its properties are predominately located in the Permian Basin of New Mexico and Texas, the San Juan Basin of New Mexico and Colorado and the Williston Basin of Montana and North Dakota. It holds 50% interest, executed agreements to dispose of certain of the oil and gas assets owned by Cross Timbers Energy, LLC (Cross Timbers), pursuant to purchase and sale agreements with multiple private buyers.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Dividend Increase: TXO Energy Partners has declared a quarterly dividend of $0.36 per share, marking a 20% increase from the previous $0.30, reflecting the company's ongoing improvement in cash flow and profitability, which boosts investor confidence.
- Yield Advantage: The forward yield of 11.58% not only attracts income-seeking investors but also enhances the company's competitiveness among small-cap energy stocks, potentially driving the stock price higher.
- Shareholder Return Plan: The dividend is payable on May 22, with a record date of May 15 and an ex-dividend date also on May 15, ensuring shareholders can promptly benefit from this return, thereby increasing their loyalty to the company.
- Asset Disposal Strategy: TXO Partners plans to sell $20 million in oil and gas properties, a move that not only helps optimize the asset portfolio but may also provide additional funding to invest in high-return projects.
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- Stock Movement: TXO Partners LP ended the recent trading session at $12.81, reflecting a 1.83% increase from the previous day, outperforming the S&P 500's gain of 0.08%, indicating relative strength in the market.
- Earnings Expectations: The upcoming earnings report is expected to show an EPS of $0.05, down 79.17% year-over-year; however, revenue is projected to reach $109.78 million, representing a 30.19% increase, highlighting the company's potential for revenue growth.
- Analyst Ratings: TXO Partners LP currently holds a Zacks Rank of #3 (Hold), indicating cautious optimism in the market, especially with a 137.5% rise in EPS estimates over the past month, which could influence short-term stock movements.
- Valuation Analysis: TXO's forward P/E ratio stands at 18.92, significantly higher than the industry average of 13.83, suggesting that the market has high growth expectations for the company, despite its ranking in the bottom 12% of the Energy and Pipeline sector.
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- Asset Sale Agreement: TXO Partners announced that its 50%-owned joint venture, Cross Timbers Energy, has agreed to sell nearly all oil and gas properties for approximately $200 million, which is expected to yield around $100 million in net proceeds, enhancing the company's liquidity for future investments.
- Planned Use of Proceeds: TXO intends to allocate the $100 million from the sale towards a $70 million deferred payment due at the end of July for assets purchased from White Rock Energy in 2025, ensuring financial stability for future acquisitions.
- Operational Focus Shift: Post-sale, TXO will concentrate its operations on the Williston Basin, San Juan Basin, and the Vacuum and Parker fields in the Permian Basin, aiming to optimize resource allocation and improve operational efficiency to maintain competitiveness in core areas.
- Market Reaction Expectations: This transaction is anticipated to boost market confidence in TXO, and despite facing market volatility, the company is expected to achieve stable revenue growth through efficient asset management and a focus on core business areas.
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- Asset Sale Agreements: TXO Partners has executed purchase and sale agreements with multiple private buyers to sell oil and gas properties through its joint venture, Cross Timbers Energy, totaling approximately $200 million, which, if completed, will significantly reduce Cross Timbers' asset burden.
- Expected Proceeds: TXO anticipates receiving about $100 million in net proceeds, which will be allocated towards a $70 million deferred payment due for the 2025 acquisition of assets from White Rock Energy, ensuring the continuity of its strategic acquisitions.
- Future Operational Focus: The company plans to concentrate its future operations on the Williston Basin, San Juan Basin, and the Vacuum and Parker fields in the Permian Basin, aiming to optimize resource allocation and enhance profitability in these key areas.
- Transaction Timeline: These transactions are expected to close in the second quarter of 2026, although there is uncertainty regarding the fulfillment of all closing conditions, reflecting TXO's proactive positioning and strategic adjustments in the market.
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Focus on Operations: The article discusses the operational focus of a partnership involving various fields and locations.
Locations Mentioned: Key areas highlighted include Williston, San Juan, and specific fields in the Permian Basin.
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- Dividend Adjustment: TXO Energy Partners has declared a quarterly dividend of $0.30 per share, representing a 14.3% decrease from the previous $0.35, indicating the company's financial prudence in the current economic environment.
- Yield Performance: The forward yield stands at 9.58%, which, despite the reduction in dividends, still offers investors a relatively attractive return, showcasing the company's stability under a low-leverage, high-reliability strategy.
- Payment Schedule: The dividend is payable on March 17, with a record date of March 10 and an ex-dividend date also set for March 10, ensuring shareholders receive their dividend promptly.
- Market Reaction: Although the dividend has decreased, TXO Energy Partners' dividend scorecard and historical earnings data continue to reflect its competitiveness in the energy market, potentially attracting investors seeking stable income.
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