TXO Partners: Looking Great Ahead Of Q2 Earnings

TXO Partners is upgraded from Buy to Strong Buy, reflecting improved operational performance and favorable market positioning ahead of earnings. TXO’s focus on mature, proven assets delivers reliable cash flows, with Q1 volumes up 24% YoY and unit economics sharply improving despite a GAAP net loss. Debt repayments are accelerating, with $14 million per quarter potentially adding 7.6% to market cap in FY2026, supporting a secure 10.88% forward yield. Upside is supported by rising commodity prices, robust gross margins, and a conservative payout ratio, but risks remain if oil/gas prices decline and hedging resets lower.

It’s Time For An Upgrade Whenever I get the chance to upgrade one of my previously covered companies it gives me a lot of joy. Today is such a time as I’m upgrading TXO Partners (