TXO Partners, L.P. (NYSE: TXO) has recently announced its entry into definitive agreements for assets in the Greater Williston Basin. The company has entered into separate purchase agreements with Eagle Mountain Energy Partners, a Pearl Energy Investments portfolio company, and a private company for total cash considerations of $243 million and 2.5 million common units of TXO.
The transactions are expected to add approximately 4,500 daily barrels of oil equivalent production, with approximately 90% of it being liquids. Additionally, the acquisitions are anticipated to bring proved developed reserves of approximately 17,000 mboe as of April 1, 2024.
The company's leadership has expressed optimism about the acquisitions. Bob R. Simpson, Chairman and CEO of TXO, highlighted the return to a region where the team had prior success, emphasizing the potential for equity value creation and high returns through the application of their technology.
Brent Clum, the President of Business Operations and CFO, commented on the strategic fit of the assets with the company's expertise and capital allocation strategy. He expects the acquisitions to be accretive on various measures, particularly in terms of cash flow and distributions.
The transactions are expected to close in the third quarter of 2024, subject to customary closing conditions. If consummated, they will significantly contribute to TXO's production and reserves, further solidifying the company's position in the energy sector.
TXO Partners, L.P. is a master limited partnership focusing on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. The company's current acreage positions are concentrated in the Permian Basin of West Texas and New Mexico, and the San Juan Basin of New Mexico and Colorado. Today the company's shares have moved 0.1% to a price of $21.93. If you want to know more, read the company's complete 8-K report here.
