TXO Partners, L.P. (NYSE: TXO) has announced the pricing of its public offering of 6,500,000 common units at a price to the public of $20.00 per common unit. This represents an increase from the previously announced offering size of 5,000,000 common units. The underwriters have been granted an option to purchase up to an additional 975,000 common units at the public offering price.
The offering is expected to close on June 28, 2024, and TXO anticipates receiving net proceeds of approximately $122.5 million, after deducting underwriting discounts and commissions and estimated offering expenses, and excluding any exercise of the underwriters’ option to purchase additional common units.
These proceeds are intended to fund a portion of the cash consideration for previously announced asset acquisitions from Eagle Mountain Partners and a private company. In the event that either of the acquisitions are not completed, the proceeds from the offering will be used to repay the outstanding borrowings under TXO’s revolving credit facility and for general partnership purposes.
Raymond James is acting as the sole book-running manager for the offering, which is being made pursuant to an effective shelf registration statement filed by TXO with the Securities and Exchange Commission.
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 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. As a result of these announcements, the company's shares have moved 0.8% on the market, and are now trading at a price of $20.16. For the full picture, make sure to review TXO's 8-K report.
