TXO Partners LP (NYSE:TXO) to Issue Dividend Increase - $0.44 Per Share

Key Points

• TXO Partners raised its quarterly dividend 10% to $0.44 per share, equivalent to $1.76 annualized and a reported 12.9% yield. The dividend is payable November 20 to shareholders of record November 13.
• The dividend currently exceeds earnings, with a 139.1% payout ratio, but analysts expect next year’s earnings to cover the dividend at a forecast payout ratio of 83.3%.
• TXO reported a quarterly loss of $0.58 per share, missing the $0.22 consensus estimate, while revenue of $55.09 million fell short of expectations of $102.05 million.

TXO Partners LP (NYSE:TXO - Get Free Report) announced a quarterly dividend on Tuesday, November 3rd. Stockholders of record on Friday, November 13th will be paid a dividend of $0.44 per share on Friday, November 20th. This represents a $1.76 annualized dividend and a dividend yield of 12.9%. The ex-dividend date is Friday, November 13th. This is a 10.0% increase from TXO Partners's previous quarterly dividend of $0.40.

TXO Partners has a payout ratio of 139.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect TXO Partners to earn $1.92 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 83.3%.

TXO Partners Trading Down 0.1%

Shares of NYSE:TXO opened at $13.60 on Wednesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.05 and a quick ratio of 1.05. The business's 50 day simple moving average is $14.38 and its 200-day simple moving average is $13.14. TXO Partners has a 12 month low of $10.12 and a 12 month high of $15.58.

TXO Partners (NYSE:TXO - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The company reported ($0.58) earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.80). The firm had revenue of $55.09 million during the quarter, compared to analysts' expectations of $102.05 million. TXO Partners had a negative net margin of 9.23% and a negative return on equity of 5.59%. Equities analysts anticipate that TXO Partners will post 0.60 EPS for the current year.

Insider Transactions at TXO Partners

In related news, Director Bob Simpson bought 125,000 shares of TXO Partners stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average price of $14.32 per share, with a total value of $1,790,000.00. Following the purchase, the director owned 9,500,000 shares in the company, valued at $136,040,000. This represents a 1.33% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Over the last 90 days, insiders purchased 400,000 shares of company stock valued at $5,638,250.

Hedge Funds Weigh In On TXO Partners

Several hedge funds have recently bought and sold shares of TXO. Allied Private Wealth LLC purchased a new stake in shares of TXO Partners in the second quarter valued at $30,000. Apollon Wealth Management LLC increased its position in TXO Partners by 5.8% during the 3rd quarter. Apollon Wealth Management LLC now owns 13,124 shares of the company's stock worth $179,000 after purchasing an additional 716 shares in the last quarter. Chicago Partners Investment Group LLC acquired a new position in TXO Partners in the 3rd quarter valued at about $217,000. CWA Asset Management Group LLC raised its stake in TXO Partners by 7.5% in the 3rd quarter. CWA Asset Management Group LLC now owns 18,315 shares of the company's stock valued at $250,000 after purchasing an additional 1,272 shares during the last quarter. Finally, Arrow Investment Advisors LLC lifted its holdings in TXO Partners by 14.0% in the 3rd quarter. Arrow Investment Advisors LLC now owns 19,335 shares of the company's stock valued at $264,000 after purchasing an additional 2,374 shares in the last quarter. Hedge funds and other institutional investors own 27.44% of the company's stock.

About TXO Partners

TXO Partners, L.P. NYSE: TXO is an independent oil and natural gas company focused on acquiring, developing and exploiting producing properties. The company's operations are centered on mature, conventional oil and natural gas assets, with an emphasis on generating production and cash flow from properties that may offer additional development or operating opportunities.

TXO Partners primarily operates in the Permian Basin, one of the largest oil-producing regions in the United States.

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