TXO Partners 2025 Q2 Earnings Sharp Net Loss Despite Revenue Surge

TXO Partners reported its fiscal 2025 Q2 earnings on August 5, 2025, revealing a significant jump in revenue but a steep decline in net income. The results showed a divergence between top-line performance and profitability, with no guidance adjustments provided.

TXO Partners (TXO) reported its fiscal 2025 Q2 earnings on August 5, 2025. The company delivered a 56.8% year-over-year revenue increase, but this did not translate into improved profitability.

Revenue
Driven by strong performance across its core energy segments, TXO’s total revenue surged to $89.88 million in the second quarter of 2025, a 56.8% increase compared to the same period in 2024. The company’s oil and condensate segment accounted for the largest share at $59.05 million, followed by natural gas, which contributed $22.93 million. Natural gas liquids added an additional $7.89 million to the total revenue.

Earnings/Net Income
Despite the robust revenue growth, TXO Partners reported a net loss of $135,000 in Q2 2025, a 104.8% deterioration from the $2.81 million net income in the prior year. The company maintained an EPS of $0.00, indicating that the earnings decline was not reflected in per-unit profitability, which was a negative development.

Price Action
TXO’s stock price moved mixed over the near-term timeframes: it gained 1.01% on the latest trading day, but dropped 2.66% over the most recent full trading week and 1.77% month-to-date.

Post Earnings Price Action Review
The 30-day investment strategy of buying TXO shares after the positive earnings report proved unsuccessful, delivering a -38.13% return—significantly underperforming the 0.00% benchmark. The strategy exhibited poor risk-adjusted returns, with a CAGR of -17.97%, a Sharpe ratio of -0.51, and a 34.96% maximum drawdown, highlighting a volatile and unprofitable short-term outlook.

CEO Commentary
Brent W. Clum, Co-CEO & CFO, highlighted the company’s focus on financial discipline, long-lived legacy properties, and active development in key basins, including the Williston, Permian, and Mancos Shale. The company declared a $0.45 per unit distribution and emphasized strategic capital allocation and robust operating margins. Gary D. Simpson, Co-CEO, noted the recent White Rock acquisition and a production level now exceeding 10,000 barrels of oil per day, supported by over 100 horizontal drilling locations.

Guidance
TXO outlined forward-looking strategies related to cash flow management, capital execution, and future investment plans, though no specific quantitative guidance was provided. The company acknowledged operational and market risks including commodity price volatility, integration of new assets, and uncertainty in reserve producibility. Management, however, expressed confidence in the company’s long-term ability to sustain operations and distributions.

Additional News
Within three weeks of the earnings report, TXO completed the acquisition of the White Rock field, a strategic move to expand its production capacity and resource base. No recent executive changes were reported during this period. Additionally, the company announced a continued focus on maintaining its current distribution rate, reflecting its confidence in cash flow generation and operational efficiency. This aligns with its broader strategy to allocate capital effectively and maintain financial stability in a volatile energy market.