13.5%-Yielding TXO Energy Partners LP Bullish as Oil Eyes $100/Barrel
March 19, 2026
Near-Term Outlook for TXO Seems Robust
The outlook for TXO Energy Energy Partners LP (NYSE:TXO), an oil and gas exploration and production (E&P) company, remains robust as the Iran war heats up. Brent crude, the international benchmark, has topped $90.00 per barrel with the closure of the Strait of Hormuz putting a halt to Gulf oil. Kuwait and Iraq have also begun cutting their production.
West Texas Intermediate (WTI), the U.S. oil benchmark, has jumped from $67.00 per barrel on February 27 (a day before the Iran war started) to more than $86.00 per barrel on March 5, its highest trading level since July 2024.
With the war still in its early days, the sky’s the limit for where oil prices could go. JPMorgan has predicted that Brent crude could hit $120.00 per barrel should a full-sized conflict in the Middle East materialize. (Source: “JPMorgan: Oil Prices Could Hit $120 Per Barrel,” OilPrice, March 2, 2026.)
Global tensions in the Middle East have, justifiably, put a renewed spotlight on reliable domestic producers like TXO Energy Partners LP.
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About TXO Energy Partners LP
Fort-Worth-Texas-based TXO Partners, LP is an oil and gas company focused on conventional oil, natural gas, and natural gas liquid (NGL) reserves in North America. (Source: “Investor Presentation,” TXO Energy Partners LP, last accessed March 5, 2026.)
Its current acreage positions cover approximately 642,000 net acres across three major U.S. basins: the Permian Basin of West Texas and New Mexico; the San Juan Basin of New Mexico and Colorado; and the Williston Basin of Montana and North Dakota.
With long-lived, low-decline assets, the partnership has identified a rich inventory of development opportunities.
TXO Energy also recently got a lot bigger. In July 2025, the company completed the $331.6-million acquisition of certain oil and gas assets from White Rock Energy, LLC. These assets are located in the Elm Coulee field in Montana and North Dakota.
TXO Energy Partners currently has total provable reserves of 129.1 million barrels of oil equivalent (Mboe). Of that, oil accounts for 59.3 million barrels of oil. It also has total proved developed reserves of 103.7 Mboe and 25.4 million Mboe in proved undeveloped reserves.
2025 Revenue Jumps 41%
For the year ended December 31, 2025, TXO Energy reported revenue of $401.0 million, a 41.7% increase over the $282.8 million recorded in 2024. Of that total, 70% of consolidated revenue came from oil revenue, 21% from natural gas revenues, and 9% from NGL revenues. (Source: FORM 10-K,” TXO Energy Partners LP, last accessed February 26, 2026.)
Despite reporting significantly higher revenue, the company reported a loss of $21.6 million, or $0.43 per share, compared to 2024 net income of $23.5 million, or $0.65 per share. This was largely a result of higher operating expenses and a big increase in in shares outstanding, which diluted earnings for shareholders.
In 2025, the company produced an average of 28,268 barrels of oil equivalent (boe) per day, approximately 72% of which came from assets operated by TXO.
Declares Q4 Dividend of $0.30/Unit
Returning value to shareholders is an important part of TXO Energy’s business. Since its January 2023 initial public offering (IPO), TXO stock has returned approximately $245.0 million in cash ($6.20 per share) to shareholders through dividends.
Most recently, in March, TXO Energy paid out a fourth-quarter distribution of $0.30 per unit, or $1.71 per unit on an annual basis, for a forward dividend yield of 13.45%. (Source: “TXO PARTNERS Declares a Fourth Quarter 2025 Distribution of $0.30 on Common Units; Files Annual Report on Form 10-K,” TXO Energy Partners LP, February 26, 2026.)
Commenting on the payout, Co-CEO Brent W. Clum said, “We are thrilled with the success of our expanding operations in the Elm Coulee field of the Williston Basin. With a dominant leasehold position, our team has done a masterful job of integrating ongoing operations with our first tranche of new, long-lateral drill wells, and there is more to come.”
TXO Units Have 72% Upside Potential
It’s tough to find a better place to be right now than energy. And that helps explain why TXO units have rebounded off an all-time low in early January. While TXO is down roughly 25% on an annual basis, it’s are up 5.0% over the last month and 18.5% year to date.
And, according to conservative Wall Street, better days are ahead, with analysts providing a 12-month share price target range of $19.00 to $22.00. This points to potential upside of 49% to 72%.
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The Lowdown on TXO Energy Partners LP
TXO Energy Partners is a great E&P company with a growing property portfolio in the Permian, San Juan, and Williston Basins, each characterized by low geological risk, low decline rates, and high recoveries.
For passive income investors, the partnership legally has to distribute all of its cash on hand at the end of each quarter. Management has said that the low decline nature of its reserves and the relatively low cost to maintain production combined with its low leverage profile will continue to support its distributions.
That should continue to be good news for all shareholders, including the 26.58% held by insiders and 29.99% held by institutions. Of the 65 institutional holders, three of the largest are King Luther Capital Management, CIBC Private Wealth Group, LLC, and Global Endowment Management, LP. (Source: “TXO Partners, L.P. (TXO),” Yahoo! Finance, last accessed March 5, 2026.)
