TXO Partners (NYSE: TXO), an independent upstream oil and natural gas company, outlined its strategy at an EnerCom presentation, emphasizing a focus on cash distributions and selective investment across the Permian, San Juan, and Williston basins. Co-CEO Brent W. Clum reported that TXO owns approximately 520,000 net acres and around $1 billion in proved developed producing (PDP) assets, with a long-term portfolio decline rate projected at 12% or less.
The company, which went public in 2023, has shifted its operational focus in the Williston Basin toward new drilling techniques, reporting plans for seven organic wells in 2026 with average lateral lengths of about 15,000 feet. TXO anticipates capital expenditures of about $80 million this year, with potential increases tied to refracturing activities. Additionally, TXO aims for a targeted distribution growth from $0.40 to $1.60 over the next 12 months, while being heavily hedged to protect its financial stability.
Following transactions to divest from a joint venture with Exxon, Clum stated that the financial impact of these changes will be clearer by the end of Q3 2026. TXO’s variable distribution strategy, designed to avoid significant quarter-to-quarter fluctuations, reflects its objective to create a more valuable company while maintaining a conservative leverage level.
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