TXO Partners (TXO) Investor presentation summary

Business model and asset base

• Operates as a yield-oriented independent oil and gas company with ~520,000 net acres across three major US basins, focusing on long-lived, low-decline conventional assets that generate strong cash flows.

• Maintains a vision for long-term production and distribution, distributing a substantial portion of operational cash flow directly to unitholders.

• Management, board, and significant owners are highly aligned, collectively owning about 34% of units.

• Asset portfolio includes the Permian, San Juan, and Williston Basins, with a focus on proven, low-risk development plays.

• Demonstrates a 12% base decline rate and $1B in proved PV-10 reserves as of 2025.

Operational performance and growth

• Achieved a 30% CAGR in daily oil production from 2022 through 2Q 2026, with 26,000 daily oil equivalent barrels produced YTD 2026.

• Williston Basin receives the majority of 2026 discretionary capex, with significant production growth and high oil cut in Elm Coulee Field.

• Permian Basin assets offer upside through infill drilling, waterfloods, CO2 floods, and recompletions, with a low 6% base decline rate.

• San Juan Basin Mancos Shale play offers future optionality, though current prices do not compel near-term capital deployment.

• Portfolio is balanced between oil and gas, providing flexibility in capital allocation and commodity exposure.

Financial strategy and distributions

• Maintains a high-margin capital program with 2026 development costs expected at ~$80MM.

• Employs a variable distribution policy, returning all available cash to unitholders and avoiding double taxation.

• Targets a net debt/adjusted EBITDAX ratio between ~1.0x and ~2.0x post recent acquisitions and dispositions.

• Hedging strategy is opportunistic, with a detailed hedge profile for crude oil, NGLs, and natural gas through 2028.

• Over $286M distributed to unitholders since IPO, with $6.96 per unit in total distributions.