FORT WORTH, Texas - TXO Partners, L.P. (NYSE: TXO), a master limited partnership specializing in conventional energy resource development in North America, announced today the launch of an underwritten public offering of 5 million common units.
The company is also expected to offer the underwriters an option to purchase up to an additional 750,000 units. The proceeds are intended to partially fund its acquisitions from Eagle Mountain Energy Partners and another private company.
The offering is not contingent on the completion of these acquisitions. Should the acquisitions not proceed, TXO plans to use the proceeds to repay outstanding debts under its revolving credit facility and for general partnership purposes. Raymond James is serving as the sole book-running manager for the offering.
TXO's operations are primarily concentrated in the Permian Basin and the San Juan Basin, where it focuses on acquiring, developing, optimizing, and exploiting oil and natural gas reserves.
The offering is being conducted in accordance with a shelf registration statement filed with the Securities and Exchange Commission (SEC), including a base prospectus. A prospectus supplement related to the offering will be made available, and those interested may obtain copies from Raymond James & Associates when available.
This announcement does not constitute a sale offer or a solicitation to buy securities, and any such offer or solicitation will not be valid in jurisdictions where it would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
The company's forward-looking statements, including expectations of the offering's size, timing, and results, as well as the anticipated acquisitions, are subject to risks and uncertainties. Factors that could cause actual outcomes to differ include market conditions, the company's ability to complete the acquisitions as planned, and other risks detailed in the company's SEC filings.
The information in this article is based on a press release statement from TXO Partners.
InvestingPro Insights
TXO Partners, L.P. (NYSE: TXO), while navigating the conventional energy landscape, has shown a robust return over the last three months, with a 25.23% price total return. This performance comes amidst a backdrop of revenue challenges, as the company experienced a significant revenue decline of 30.07% in the last twelve months as of Q1 2024. Despite this downturn, TXO's dividend yield stands at an attractive 11.87%, which could be a compelling factor for income-focused investors.
Investors closely monitoring TXO's financial health will note the company's moderate level of debt and a price/book ratio of 1.46, suggesting that the market values the company at a slight premium over its book value. Moreover, while the company has not been profitable over the last twelve months, analysts are optimistic about TXO's potential for profitability this year.
InvestingPro Tips for TXO highlight that the company is trading near its 52-week high, currently at 93.12% of this threshold, and has had a large price uptick over the last six months, with a 28.21% price total return. This could indicate investor confidence in TXO's strategic moves, including its recent public offering and planned acquisitions.
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