TXO Partners L.P. Common Units Representing Limited Partner Interests (TXO)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at TXO Partners as a classic resource turnaround. It is an oil and gas producer with conventional reserves in the Permian, San Juan and Williston basins. The filed record is volatile: FY2023 net loss $104.0M, FY2024 net income $23.5M, and FY2025 net loss $21.6M, or diluted EPS -$0.43. That fits the FairStock Lynch category TURNAROUND — loss in the latest year after earlier profits. More recently, fiscal Q2 2026 (quarter ended 2026-06-30) showed $60.8M net income on $134.4M revenue, a sharp swing from fiscal Q1 2026 net loss of $74.3M. That is encouraging, but one quarter does not make a trend. At the 2026-10-13 close of $14.57, FairStock calculations show P/B 1.15, negative P/E -19.96 on trailing EPS -$0.73, and EV/EBITDA 10.68. The 9.67% dividend yield is alluring, yet trailing free cash flow was -$88.3M and FCF yield -10.9%, so the distribution is not covered by trailing cash generation. Debt/equity of 0.42 is manageable, but Altman Z 1.08 and a FairStock Score of 49/100 signal fragility. Piotroski F-Score of 6/9 offers some encouragement. This business sells commodities, so it has limited pricing power and no obvious moat. Graham would demand a margin of safety; with earnings erratic, cash flow negative, and units near the top of the $10.12-$15.58 52-week range, I see a speculative turnaround, not a clear bargain. I would want durable positive free cash flow and dividend coverage before trusting the current earnings power.

In plain English: TXO Partners is an oil and natural gas company that produces energy from fields in Texas, New Mexico, Colorado, Montana and North Dakota. Its profits have been uneven: fiscal 2025 showed a loss, but fiscal Q2 2026 showed a large profit, and the company pays a very high dividend even though it has recently spent more cash than it brought in. At the 2026-10-13 close of $14.57, the price looks roughly fair to slightly expensive against its uneven earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer