TXO Partners Swings to $60.8M Q2 Profit, Cash Surges After $200M Asset Sales
TXO sits 35% above its 52-week low of $10.12.
Summary
TXO Partners reported Q2 2026 net income of $60.8M, a dramatic improvement from a $0.1M loss last year, as higher oil output and prices lifted revenue. Cash soared to $107.5M after closing $200M in asset sales, enabling debt reduction and a distribution increase to $0.40/unit.
Key Events · Earnings and Guidance · TXO
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Q2 Net Income Swings to $60.8M
Net income reached $60.8M in Q2 2026, reversing a $0.1M loss in Q2 2025, driven by a 38% increase in oil production and higher realized prices.
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Cash Position Surges to $107.5M
Cash and cash equivalents jumped to $107.5M at June 30, 2026, from $9.4M at year-end 2025, primarily due to $100.3M in proceeds from the Cross Timbers asset sales.
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$200M Asset Sales Completed
The Cross Timbers joint venture sold its oil and gas properties for $200M in gross proceeds. TXO received an initial $95M distribution in July 2026, used to pay the $70M White Rock deferred payment and reduce debt.
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Distribution Raised to $0.40/Unit
The board declared a Q2 2026 distribution of $0.40 per common unit, up from $0.36 in Q1 2026, payable August 21 to unitholders of record August 14.
Analysis · TXO · Energy & Transportation
A sharp turnaround in Q2 2026 saw TXO Partners post net income of $60.8 million, compared to a near-breakeven loss a year ago. Higher oil production and prices, along with a $41.9 million unrealized hedging gain, drove the improvement. More importantly, the balance sheet transformed: cash jumped to $107.5 million from just $9.4 million at year-end, fueled by the completion of $200 million in asset sales. The company used the proceeds to pay off a $70 million deferred acquisition payment and reduce credit facility borrowings. Signaling confidence in the improved financial position, the board also raised the quarterly distribution to $0.40 per unit.
At the time of this filing, TXO was trading at $13.62 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $717M. The 52-week trading range was $10.12 to $15.35. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.