TXO Partners (TXO) EnerCom Denver – The Energy Investment Conference summary

Strategic vision and ownership

• Leadership and board own about a third of the company, guiding decisions with a long-term owner mindset.

• Focus is on building value with high-quality assets and maintaining a sustainable, durable business.

• Emphasis on production and distribution, aiming to raise distributions annually while building long-term value.

• Distribution strategy is variable but actively managed to provide stability and growth.

• MLP structure is leveraged for capital allocation and tax efficiency, with no IDRs or complex arrangements.

Asset portfolio and operational highlights

• Operates across three major basins: Permian, San Juan, and Williston, with 520,000 net acres.

• Recent acquisitions in the Williston Basin (2024, 2025) have expanded high-margin oil opportunities.

• Permian assets, especially the Vacuum Field, provide stable production with a low 6% decline rate.

• San Juan Basin, including the Mancos, is considered a future growth driver, with 60,000 acres and significant upside potential.

• Asset base allows flexibility to shift capital between oil and gas depending on market conditions.

Growth, development, and technology

• Shifted Williston Basin strategy from refracs to new drilling, leveraging advances in lateral lengths and pad efficiency.

• In 2026, seven organic wells are being drilled with average laterals of 14,700 feet, all to be online by October.

• Over 100 additional drilling locations identified in Williston, with ongoing technology adoption and operational learning.

• Mancos development is on hold pending improved commodity prices, with infrastructure investments already made.

• Capital spending for 2024 expected to exceed $80 million, with flexibility to adjust based on market conditions.