TXO Partners Reports Q3 2024 Financials

TL;DR

**TXO Partners Q3 2024: AR up $21.8M, Current Liab down $10.1M. Oil & Gas data included.**

AI Summary

TXO Partners, L.P. filed its 10-Q for the period ending September 30, 2024. The company reported changes in operating assets and liabilities, with accounts receivable increasing by $21.8 million and current liabilities decreasing by $10.1 million compared to the prior period. The filing also includes data related to oil and condensate production and natural gas liquids reserves.

Why It Matters

This 10-Q filing provides investors with an update on TXO Partners' financial health and operational performance for the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing contains financial data and operational metrics for an oil and gas company, which inherently carries market and commodity price risks.

Key Numbers

• $21.8M — Accounts Receivable Change (Increase in operating assets for Q3 2024)
• $10.1M — Current Liabilities Change (Decrease in operating liabilities for Q3 2024)

Key Players & Entities

• TXO Partners, L.P. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• $21,834 (dollar_amount) — Increase in accounts receivable
• $10,059 (dollar_amount) — Decrease in current liabilities

FAQ

Filing Documents

• txo-20240930.htm (10-Q) — 957KB
• ex311txo-q3202410xqsection.htm (EX-31.1) — 8KB
• ex312txo-q3202410xqsection.htm (EX-31.2) — 8KB
• ex321txo-q3202410xqsection.htm (EX-32.1) — 4KB
• ex322txo-q3202410xqsection.htm (EX-32.2) — 4KB
• 0001559432-24-000052.txt ( ) — 5507KB
• txo-20240930.xsd (EX-101.SCH) — 45KB
• txo-20240930_cal.xml (EX-101.CAL) — 50KB
• txo-20240930_def.xml (EX-101.DEF) — 191KB
• txo-20240930_lab.xml (EX-101.LAB) — 540KB
• txo-20240930_pre.xml (EX-101.PRE) — 372KB
• txo-20240930_htm.xml (XML) — 675KB

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements 1 Consolidated Balance Sheets 1 Consolidated Statements of Operations 2 Consolidated Statements of Cash Flows 3 Consolidated Statements of Members' Equity 4

Notes to Financial Statements

Notes to Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 32

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 33

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 36

Signatures

Signatures 37 i Table of Contents

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements TXO PARTNERS, L.P. Consolidated Balance Sheets (in thousands) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 3,846 $ 4,505 Accounts receivable, net 34,999 32,226 Derivative fair value 3,853 6,052 Other 11,431 12,406 Total Current Assets 54,129 55,189 Property and Equipment, at cost – successful efforts method: Proved properties 1,888,570 1,540,105 Unproved properties 18,699 18,479 Other 85,584 83,854 Total Property and Equipment 1,992,853 1,642,438 Accumulated depreciation, depletion and amortization ( 1,047,513 ) ( 1,013,115 ) Net Property and Equipment 945,340 629,323 Other Assets: Note receivable from related party 7,131 7,131 Derivative fair value 3,221 — Other 6,349 3,970 Total Other Assets 16,701 11,101 TOTAL ASSETS $ 1,016,170 $ 695,613 LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accounts payable $ 14,085 $ 8,598 Accrued liabilities 34,612 23,362 Derivative fair value 1,348 4,045 Asset retirement obligation, current portion 1,750 1,750 Other current liabilities 1,346 1,361 Total Current Liabilities 53,141 39,116 Long-term Debt 155,100 28,100 Other Liabilities: Asset retirement obligation 178,062 152,222 Derivative fair value 7,266 — Other liabilities 1,222 2,377 Total Other Liabilities 186,550 154,599 Commitments and Contingencies Partners' Capital: Partners' capital 621,379 473,798 TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 1,016,170 $ 695,613 See accompanying notes to the Consolidated Financial Statements 1 Table of Contents TXO PARTNERS, L.P. Consolidated Statements of Operations (Unaudited) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 REVENUES Oil and condensate $ 56,111 $ 35,292 $ 136,944 $ 132,604 Natural gas liquids 7,195 5,446 20,367 21,602 Gas 5,425 29,136 36,167 134,539 Total Revenues 68,731 69,874 193,478 288,745 EXPENSES Production 39,437 35

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 1. Organization and Summary of Significant Accounting Policies TXO Partners, L.P. (TXO Partners or the Partnership) is an independent oil and gas company that was formed as a Delaware limited partnership in January 2012 (with an effective inception of operations at January 18, 2012). The operations of TXO Partners are governed by the provisions of the partnership agreement, as amended, executed by the general partner, TXO Partners GP, LLC (the General Partner) and the limited partners. The General Partner is the manager and operator of TXO Partners. The General Partner is managed by the board of directors and executive officers of our General Partner. The members of the board of directors of our General Partner are appointed by MorningStar Oil & Gas, LLC ("MSOG"), as the sole member of our General Partner. TXO Partners will remain in existence unless and until dissolved in accordance with the terms of the partnership agreement. TXO Partners' assets include its investment in an unincorporated joint venture, Cross Timbers Energy, LLC ("Cross Timbers Energy"). TXO Partners owns 50 % of Cross Timbers Energy, and TXO Partners is the manager of Cross Timbers Energy. Cross Timbers Energy is governed by a Member Management Committee (MMC) and is comprised of six representatives, three from each group, with each group having one voting member. All matters that come before the MMC require the unanimous consent of the voting members. On the last day of each calendar quarter, Cross Timbers Energy distributes all excess cash to the members based on their ownership percentage of 50 % each, except for earnings from the note receivable which is owned 5 % by TXO Partners. Cross Timbers Energy's properties are located primarily in the San Juan Basin of New Mexico and Colorado and the Permian Basin of West Texas and New Mexico. TXO Partners also has a wholly-owned subsidiary, MorningStar Operating LLC which owns oil and gas a