TXO Partners LP (NYSE:TXO) Announces Dividend Increase - $0.36 Per Share

Key Points

• TXO Partners raised its quarterly dividend to $0.36 per share (a 20% increase from $0.30), implying an annualized $1.20 and a yield of about 11.5%; shareholders of record on May 15 will be paid on May 22 (ex-dividend date May 15).
• The dividend appears unsustainable: TXO has a payout ratio of 104.3% and, using analysts' expected EPS of $0.92 next year, would have an estimated payout ratio of ~130.4%, indicating reliance on the balance sheet rather than earnings to fund distributions.
• Operational and market context: TXO beat quarterly EPS estimates (reported $0.02), has a market cap of about $689 million and a 52-week range of $10.12–$17.90, and carries a consensus analyst rating of Moderate Buy with a $18.50 target.

TXO Partners LP (NYSE:TXO - Get Free Report) announced a quarterly dividend on Monday, May 4th. Shareholders of record on Friday, May 15th will be given a dividend of 0.36 per share on Friday, May 22nd. This represents a c) annualized dividend and a yield of 11.5%. The ex-dividend date is Friday, May 15th. This is a 20.0% increase from TXO Partners's previous quarterly dividend of $0.30.

TXO Partners has a payout ratio of 104.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect TXO Partners to earn $0.92 per share next year, which means the company may not be able to cover its $1.20 annual dividend with an expected future payout ratio of 130.4%.

TXO Partners Stock Performance

NYSE:TXO opened at $12.47 on Tuesday. The stock has a 50-day simple moving average of $12.46 and a two-hundred day simple moving average of $12.20. TXO Partners has a 52-week low of $10.12 and a 52-week high of $17.90. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.62 and a current ratio of 0.62. The firm has a market capitalization of $688.99 million, a PE ratio of -29.00 and a beta of 0.02.

TXO Partners (NYSE:TXO - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.02 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.07. TXO Partners had a negative return on equity of 2.03% and a negative net margin of 5.39%. Analysts forecast that TXO Partners will post 0.37 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Raymond James Financial reaffirmed a "strong-buy" rating on shares of TXO Partners in a research note on Wednesday, April 29th. Stifel Nicolaus upped their price objective on TXO Partners from $18.00 to $19.00 and gave the stock a "buy" rating in a research note on Friday, March 6th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of TXO Partners in a research note on Friday, April 10th. Finally, Wall Street Zen raised TXO Partners from a "sell" rating to a "hold" rating in a research note on Saturday, March 7th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.50.

TXO Partners Company Profile

TXO Partners is an independent upstream oil and natural gas company focused on the acquisition, development and production of unconventional resource plays in the United States. The firm holds working interests in producing and non-producing acreage, primarily targeting liquids-rich areas to optimize cash flow generation and capital efficiency. Its core business involves identifying under-developed assets, engineering cost-effective drilling programs and applying advanced completion techniques to enhance well performance.

The company’s operations are concentrated in key domestic basins, where horizontal drilling and multi-stage fracturing have unlocked significant reserves.

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