DivestmentMay 4, 2026, 04:43 PM
TXO Partners Divests JV Properties for $100M Net; Q1 Net Loss $(74.3)M
AI Summary
TXO Partners announced that its joint venture, Cross Timbers Energy, is divesting oil and gas properties for approximately $200 million gross, with TXO Partners expecting $100 million in net proceeds. These proceeds are intended to cover a $70.0 million deferred payment for a prior acquisition. For Q1 2026, the company reported a net loss of $(74.3) million, a significant decline from the $2.4 million net income in Q1 2025, primarily due to a substantial decrease in oil and condensate revenue driven by derivative fair value losses. Despite the net loss, cash provided by operating activities increased to $33.4 million, and the company declared a quarterly cash distribution of $0.36 per common unit.
Key Highlights
- Cross Timbers Energy to sell oil and gas properties for $200 million gross, with $100 million net proceeds to TXO Partners.
- Net proceeds from the divestment will be used to pay the $70.0 million deferred payment for the 2025 WRE Acquisition.
- Reported a Q1 2026 net loss of $(74.3) million, compared to net income of $2.4 million in Q1 2025.
- Total revenues decreased to $28.3 million in Q1 2026 from $84.3 million in Q1 2025, largely due to derivative losses.
- Oil and condensate revenue was $(2.7) million in Q1 2026, down from $65.0 million in Q1 2025, impacted by an $84.2 million unrealized derivative loss.
- Cash provided by operating activities increased to $33.4 million in Q1 2026 from $30.6 million in Q1 2025.
- Declared a cash distribution of $0.36 per common unit for Q1 2026, payable on May 22, 2026.
- Long-term debt decreased to $277.1 million as of March 31, 2026, from $291.1 million as of December 31, 2025.