TXO Partners Declares a Fourth Quarter 2023 Distribution of $0.58 on Common Units; Files Annual Report on Form 10-K
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Insights
TXO Partners, L.P. has declared a distribution of $0.58 per common unit for the last quarter, which is a critical indicator of the company's profitability and financial health. Distributions are a direct reflection of the company's cash flow and its ability to generate earnings. Investors often view consistent or increasing distributions as a sign of a company's stability and a positive outlook, which can influence the stock's attractiveness and perceived value.
Given the volatile nature of natural gas prices, TXO's strategy to reduce activity and spending is a conservative approach to preserve capital and maintain financial discipline. This decision may impact short-term growth prospects but could be seen as a strategic move to ensure long-term stability and operational efficiency. The focus on long-term cash flow planning and efficient capital allocation is essential, as it suggests that the company prioritizes sustainable growth over aggressive expansion, which can be reassuring for investors concerned about the risks associated with commodity price fluctuations.
The mention of TXO's operations in the legacy basins, such as the Vacuum Field in the Permian Basin, highlights the company's investment in established oil-producing regions. The Permian Basin is known for its rich reserves and has been a focal point for energy companies. TXO's allocation of approximately $25 million for reservoir exploitation indicates a targeted approach to production, which could lead to operational efficiencies and optimized output.
Investors and market analysts will be interested in how TXO's strategic investments and operational adjustments align with broader market trends in the energy sector. The ability to navigate the complexities of commodity price volatility while maintaining a stable production outlook is crucial for TXO's market position and can influence investor sentiment and stock performance in the energy sector.
The press release includes a notice regarding the withholding of federal income tax for distributions to foreign unitholders. This is significant for international investors, as it affects the net income they receive from their investments. The adherence to Treasury Regulations Section 1.1446-4(b) ensures compliance with U.S. tax laws, which is an important consideration for foreign investors and can impact the attractiveness of TXO's units to a global investor base.
Understanding the tax implications is essential for brokers and nominees who handle distributions on behalf of foreign unitholders, as they are responsible for the withholding and remittance of taxes. Proper handling of these obligations is critical to maintaining investor trust and ensuring legal compliance, which can indirectly influence the company's reputation and financial standing.
“We celebrate the success of our first year as a public company with a secure asset base and a confident business plan for our owners,” stated Bob R. Simpson, Chairman and CEO. “Our focus on long-lived production in legacy basins allows us flexibility. With the volatile natural gas prices due to a warm winter, we are reducing activity and spending for the year as the industry adjusts. That said, we expect stable production in 2024 and are optimistic for stronger commodity prices ahead.”
“Our financial discipline is the key component of the TXO strategy,” further commented President of Business Operations and CFO, Brent Clum. “Through efficient capital allocation, our team generates a cash flow plan with long-term vision. As a result, we confidently deliver distributions while accreting future value for our unit-holders.”
“As commodity prices declined in the second half of 2023, we reduced development activities for the year. Our operations team completed the facility repairs and upgrades at the plant in the Vacuum Field in the second half of December,” stated Keith A. Hutton, President of Production and Development. “The field plans for 2024 are to invest approximately
Annual Report on Form 10-K
TXO's financial statements and related footnotes will be available in the Annual Report on Form 10-K for the year ended December 31, 2023, which TXO will file with the Securities and Exchange Commission (SEC) today. The 10-K will be available on TXO's Investor Relations website at www.txopartners.com/investors or on the SEC's website at www.sec.gov. TXO unitholders may request a printed copy free of charge of the Annual Report on Form 10-K by emailing IR@txopartners.com or by writing to Investor Relations, 400 West 7th Street,
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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 distribution outlook, our ability to maintain or increase oil production and reserves, 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.
FAQ
What was the amount of distribution declared by TXO Partners, L.P. for the quarter ended December 31, 2023?
When will the quarterly distribution be paid to eligible unitholders?
What is TXO's strategy to navigate through natural gas price volatility?
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Where can TXO unitholders access the Annual Report on Form 10-K for the year ended December 31, 2023?
