TXO Partners Declares a First Quarter 2024 Distribution of $0.65 on Common Units; Files Quarterly Report on Form 10-Q
TXO Partners, L.P. (NYSE: TXO) declared a distribution of $0.65 per common unit for the first quarter of 2024, showcasing strong performance in the energy sector. The quarterly distribution will be paid on May 29, 2024. TXO continues to focus on managing cash flow effectively, maintaining a long-term vision and allocating capital to high-return areas within its portfolio. With a $25 million development budget aimed at flat production in 2024, the company remains poised for growth as commodity prices improve.
- Strong performance in the energy sector
- Effective cash flow management
- Focus on high-return areas within the portfolio
- Prudent allocation of resources
- Expectation for growth as commodity prices improve
- None.
Insights
The distribution of
From a financial perspective, the commitment to a distribution at this level might indicate confidence in the company's earnings and cash reserves. It's worth noting that while distributions are positive for unitholders, they also reflect a decision by the company to return capital to shareholders rather than reinvesting it into the business for growth. Hence, the growth potential might be considered more conservative, which aligns with their strategy for flat production in 2024.
Moreover, the mention of the
The detail regarding the treatment of distributions to foreign unitholders as income effectively connected with a U.S. trade or business has tax implications. It indicates that TXO Partners has structured its operations in a manner that subjects its income to U.S. federal income tax, affecting foreign investment considerations. For international investors, this could mean a reduction in net received distributions due to tax withholdings, possibly impacting the attractiveness of the investment.
Investors and brokers must be aware of the withholding responsibilities and the potential tax burden as it may influence investment decisions, especially in the context of cross-border investing. It is an administrative aspect that could affect the net yields for foreign unitholders and may necessitate a deeper understanding of tax treaties and the implications of U.S. tax policies on foreign investments.
“Our first quarter performance highlights the effectiveness of our unique financial enterprise in the energy sector,” stated Bob R. Simpson, Chairman and CEO. “As a production and distribution company, we manage our cashflow and maintain our vision on the long term. This allows us to announce a distribution of
“We have made great strides both financially and operationally as we allocate capital to the parts of our portfolio with the best return attributes,” further commented President of Business Operations and CFO, Brent Clum. “We continue to direct the business with an eye on the volatility in the commodity markets by focusing more of our opportunity and resources towards our oil portfolio. Our
Quarterly Report on Form 10-Q
TXO's financial statements and related footnotes will be available in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which TXO will file with the Securities and Exchange Commission (SEC) today. The 10-Q will be available on TXO's Investor Relations website at www.txopartners.com/investors or on the SEC's website at www.sec.gov.
Non-
This press release is intended to be a qualified notice under Treasury Regulations Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (
About TXO Partners, L.P.
TXO Partners, L.P. is a master limited partnership focused on the acquisition, development, optimization and exploitation of conventional oil, natural gas, and natural gas liquid reserves in
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the words such as “may,” “assume,” “forecast,” “could,” “should,” “will,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “budget” and similar expressions, although not all forward-looking statements contain such identifying words. These forward-looking statements include our 2024 budget and production outlook, our ability to manage our cashflow, our ability to execute our strategy, the timing, amount and area of focus of future investments in our assets and the impacts of future commodity price changes. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events at the time such statement was made, and it is possible that the results described in this press release will not be achieved. Our assumptions and future performance are subject to a wide range of business risks, uncertainties and factors, including, without limitation, the following: our ability to meet distribution expectations and projections; the volatility of oil, natural gas and NGL prices; our ability to safely and efficiently operate TXO’s assets; uncertainties about our estimated oil, natural gas and NGL reserves, including the impact of commodity price declines on the economic producibility of such reserves, and in projecting future rates of production; and the risks and other factors disclosed in TXO’s filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, TXO does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for TXO to predict all such factors.
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TXO Partners
Brent W. Clum
President, Business Operations & CFO
817.334.7800
ir@txopartners.com
Source: TXO Partners, L.P.
