Free cash flow remains erratic, swinging from a $211.2M outflow in 2024Q3 to a $32.2M inflow in 2026Q1, reflecting the lumpy nature of capital expenditures.
| Cash from Operations | 120.98M | 118.19M | 109.3M | 77.15M | 136.38M | 73.73M | 18.96M |
| Operating CF Margin % | - | 28.72% | 38.65% | 20.26% | 55.35% | 32.29% | 17.44% |
| Operating CF Growth % | 43.11% | 8.13% | 41.67% | -43.43% | 84.98% | 288.77% | - |
| Net Income | -98.37M | -21.62M | 23.5M | -103.99M | -7.67M | 52.48M | -163.24M |
| Depreciation & Amortization | 111.79M | 96.57M | 64.03M | 52.93M | 47.42M | 44.56M | 46.26M |
| Stock-Based Compensation | 7.04M | 16.3M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 107.04M | 35.22M | 14.86M | 121.56M | 113.93M | -16.31M | 142.1M |
| Working Capital Changes | -6.52M | -8.29M | 6.91M | 6.64M | -17.3M | -6.99M | -6.16M |
| Change in Receivables | -20.11M | -12.77M | -7.99M | 19.68M | -22.75M | -14.81M | -8.1M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -332.86M | -335.32M | -288.28M | -46.22M | -86.67M | -227.8M | -16.72M |
| Capital Expenditures | -264.54M | -263.62M | -265.16M | -10.42M | -63.27M | -219.43M | -11.73M |
| CapEx % of Revenue | 74.43% | 64.07% | 93.76% | 2.74% | 25.68% | 96.1% | 10.78% |
| Acquisitions | -1.74M | 18K | 122K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -3.16M | 0 | 0 | -35.8M | -23.4M | -8.37M | -4.99M |
| Cash from Financing | 208.91M | 219.2M | 181.78M | -35.63M | -48.05M | 139.69M | 14.07M |
| Debt Issued (Net) | 112.57M | 131.57M | 129M | -92M | -32M | 10M | -35.85M |
| Equity Issued (Net) | 189.5M | 189.5M | 141.23M | 106.28M | 0 | 132.66M | 50.7M |
| Dividends Paid | -92.69M | -101.42M | -85.36M | -49.76M | -13.18M | -139K | -31K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -473K | -455K | -3.09M | -144K | -2.87M | -2.83M | -749K |
| Net Change in Cash | -2.96M | 2.07M | 2.8M | -4.7M | 1.66M | -14.39M | 16.31M |
| Free Cash Flow | -143.55M | -145.44M | -155.86M | 66.73M | 73.11M | -145.7M | 7.24M |
| FCF Margin % | -40.39% | -35.35% | -55.11% | 17.53% | 29.67% | -63.81% | 6.65% |
| FCF Growth % | 4.66% | 6.69% | -333.58% | -8.73% | 150.18% | -2113.86% | - |
| FCF per Share | -2.61 | -2.92 | -4.31 | 2.20 | 2.44 | -4.86 | 0.24 |
| FCF Conversion (FCF/Net Income) | 1.46x | -5.47x | 4.65x | -0.74x | -17.79x | 1.40x | -0.12x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Commodity price and basis volatility
As reported in recent financial statements, TXO exhibits a persistent disconnect between net income and operating cash flow, with the 2026Q1 net loss of $74.3M contrasting sharply against $33.4M in operating cash, suggesting that non-cash charges significantly distort the firm's true economic performance.
The consistent negative OCF/NI ratios indicate that GAAP net income is heavily influenced by non-cash items, likely including derivative mark-to-market adjustments and depletion charges. Investors should monitor this divergence as it implies that reported losses may overstate the actual cash-generating capacity of the underlying conventional assets.
Based on quarterly data, TXO's free cash flow trajectory remains highly erratic, swinging from a $211.2M outflow in 2024Q3 to a $32.2M inflow in 2026Q1, reflecting the company's susceptibility to lumpy capital expenditures and the inherent volatility of its production-based cash flow model.
The FCF margin volatility suggests that the company's ability to generate surplus cash is highly sensitive to the timing of capital deployment. This inconsistency complicates the sustainability of the current distribution policy, as cash flow availability appears to fluctuate significantly quarter-to-quarter.
According to historical filings, TXO's capital expenditure profile is characterized by intermittent, large-scale outlays, such as the $234.8M spent in 2025Q3, which periodically overwhelm operating cash flow and highlight the capital-intensive nature of maintaining production across its mature San Juan and Permian Basin assets.
The wide variance in CapEx/Rev ratios suggests that management utilizes a flexible, albeit unpredictable, investment strategy to manage decline rates. Analysts should investigate whether these periodic spikes are necessary for long-term asset viability or if they represent opportunistic acquisitions that may not yield immediate cash returns.
As evidenced by the provided financial data, TXO has consistently paid dividends despite reporting net losses in multiple periods, with $16.6M distributed in 2026Q1 alone, raising questions regarding the long-term sustainability of these payouts relative to the company's actual cash-generating capacity.
The commitment to returning capital to unitholders appears to be a core pillar of the MLP structure, yet the reliance on operating cash flow to fund these distributions during periods of net loss warrants caution. Investors should monitor whether future distributions will require debt financing if cash flow generation remains inconsistent.
Quick answers to the most common questions about buying TXO stock.
TXO Partners, L.P. (TXO) generated $118.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TXO Partners, L.P. (TXO) reported negative free cash flow of $145.4M in 2025, indicating capital requirements exceeded cash from operations.
TXO Partners, L.P. (TXO) spent $263.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, TXO Partners, L.P. (TXO) returned $101.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.