Revenue growth remains highly volatile, oscillating from a 117.1% surge in 2023Q4 to a 66.5% contraction by 2026Q1, while gross margins have deteriorated to a negative 138.7%.
| Sales/Revenue | 355.4M | 411.45M | 282.81M | 380.72M | 246.4M | 228.34M | 108.76M |
| Revenue Growth % | 18.59% | 45.49% | -25.72% | 54.51% | 7.91% | 109.94% | - |
| Cost of Goods Sold | 371.5M | 367.7M | 202.7M | 189.02M | 169.03M | 109.14M | 91.47M |
| COGS % of Revenue | - | 89.37% | 71.67% | 49.65% | 68.6% | 47.8% | 84.1% |
| Gross Profit | -16.1M | 43.75M | 80.11M | 191.7M | 77.37M | 119.2M | 17.3M |
| Gross Margin % | -4.53% | 10.63% | 28.32% | 50.35% | 31.4% | 52.2% | 15.9% |
| Gross Profit Growth % | - | -45.39% | -58.21% | 147.76% | -35.09% | 589.17% | - |
| Operating Expenses | 35.58M | 21.46M | 86.97M | 315.48M | 103.05M | 75.01M | 172.6M |
| OpEx % of Revenue | - | 5.22% | 30.75% | 82.86% | 41.82% | 32.85% | 158.69% |
| Selling, General & Admin | 23.84M | 21.46M | 14.53M | 7.89M | 1.65M | 12.18M | 7M |
| SG&A % of Revenue | - | 5.22% | 5.14% | 2.07% | 0.67% | 5.33% | 6.43% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 72.44M | 307.59M | 101.41M | 62.83M | 165.6M |
| Operating Income | -51.69M | 22.28M | -6.86M | -123.78M | -25.68M | 44.19M | -155.3M |
| Operating Margin % | -14.54% | 5.42% | -2.43% | -32.51% | -10.42% | 19.35% | -142.79% |
| Operating Income Growth % | - | 424.78% | 94.46% | -382.01% | -158.11% | 128.45% | - |
| EBITDA | 48.48M | 118.86M | 57.17M | -70.85M | 15.68M | 84.08M | -112.98M |
| EBITDA Margin % | 13.64% | 28.89% | 20.22% | -18.61% | 6.37% | 36.82% | -103.87% |
| EBITDA Growth % | -14.81% | 107.9% | 180.69% | -551.73% | -81.35% | 174.42% | - |
| D&A (Non-Cash Add-back) | 100.17M | 96.57M | 64.03M | 52.93M | 41.36M | 39.89M | 42.32M |
| EBIT | -67.08M | -4.66M | 31.37M | -99.56M | 530K | 58.34M | -155.03M |
| Net Interest Income | -39.64M | -16.35M | -6.79M | -3.96M | -8.05M | -5.85M | -8.01M |
| Interest Income | 614K | 618K | 1.08M | 461K | 143K | 16K | 194K |
| Interest Expense | 40.25M | 16.96M | 7.87M | 4.42M | 8.2M | 5.87M | 8.2M |
| Other Income/Expense | -46.69M | -43.9M | 30.36M | 19.79M | 18.01M | 8.29M | -7.94M |
| Pretax Income | -98.37M | -21.62M | 23.5M | -103.99M | -7.67M | 52.48M | -163.24M |
| Pretax Margin % | -27.68% | -5.25% | 8.31% | -27.31% | -3.11% | 22.98% | -150.08% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -98.37M | -21.62M | 23.5M | -103.99M | -7.67M | 52.48M | -163.24M |
| Net Margin % | -27.68% | -5.25% | 8.31% | -27.31% | -3.11% | 22.98% | -150.08% |
| Net Income Growth % | -728.77% | -192.01% | 122.6% | -1256.12% | -114.61% | 132.15% | - |
| Net Income (Continuing) | -98.37M | -21.62M | 23.5M | -103.99M | -7.67M | 52.48M | -163.24M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.79 | -0.43 | 0.65 | -3.44 | -0.26 | 2.10 | -6.53 |
| EPS Growth % | -544.03% | -166.15% | 118.9% | -1223.08% | -112.38% | 132.16% | - |
| EPS (Basic) | - | -0.43 | 0.66 | -3.44 | -0.26 | 2.10 | -6.53 |
| Diluted Shares Outstanding | 55.09M | 49.77M | 36.13M | 30.27M | 30M | 30M | 30M |
| Basic Shares Outstanding | 55.09M | 49.77M | 35.56M | 30.23M | 30M | 25M | 25M |
| Dividend Payout Ratio | - | - | 363.27% | - | - | 0.26% | - |
Commodity price and basis volatility
As reflected in the quarterly financial data, TXO's revenue trajectory remains highly erratic, oscillating between a 117.1% surge in 2023Q4 and a 66.5% contraction by 2026Q1, highlighting the company's extreme sensitivity to spot commodity pricing and the inherent instability of its production-based revenue model.
The wide variance in top-line performance suggests that TXO lacks the pricing power or production consistency required to smooth out cyclical energy market downturns. Investors should interpret these swings as a direct consequence of the company's reliance on legacy assets that are highly susceptible to regional basis differentials.
Based on reported income statements, TXO's gross margin has experienced severe degradation, plummeting to a negative 138.7% in 2026Q1, which indicates that the cost of maintaining mature, conventional wells is currently failing to align with the realized prices of produced oil and natural gas.
This margin collapse suggests that the company's lifting costs are disproportionately high relative to its revenue generation, potentially due to infrastructure constraints or rising operational expenses in the San Juan and Permian basins. Such structural weakness warrants deep investigation into whether these assets can ever achieve sustainable profitability.
According to the provided financial filings, the significant divergence between operating income and net income, particularly the 2023Q4 net loss of $193.7M, suggests that non-cash mark-to-market adjustments on commodity derivatives are creating substantial noise that masks the underlying cash-generating capacity of the firm's core operations.
The presence of these large, non-operating charges makes it difficult to assess the true economic viability of the business on a GAAP basis. Analysts should focus on settled hedge results rather than reported net income to determine if the company is actually generating value from its production.
As reported in recent financial statements, the company's inability to maintain positive net margins despite periods of aggressive revenue growth suggests that the 'harvest' strategy may be fundamentally flawed, as the cost of production appears to be outpacing the value extracted from these aging assets.
Short-sellers would likely focus on the persistent negative net margins as evidence that the company is effectively liquidating its reserves at a loss. This trend implies that the current operational model may be unsustainable without a significant and sustained increase in commodity prices to offset high lifting costs.
Quick answers to the most common questions about buying TXO stock.
For fiscal year 2025, TXO Partners, L.P. (TXO) reported total revenue of $411.5M. This represents a 278.3% increase compared to $108.8M in 2020.
TXO Partners, L.P. (TXO) reported a net loss of $21.6M for the fiscal year ending 2025.
TXO Partners, L.P. (TXO) reported an operating income of $22.3M, resulting in an operating profit margin of 5.4%. This margin reflects the operational efficiency of the business before interest and taxes.
TXO Partners, L.P. (TXO) generated $43.7M in gross profit for the year, representing a gross profit margin of 10.6%. This demonstrates the company's core pricing power and production efficiency.