📊 TXO Key Takeaways
Is TXO Partners, L.P. (TXO) a Good Investment?
TXO Partners faces a critical liquidity crisis with a current ratio of 0.62x and only $9.4M in cash against $291.1M in long-term debt, creating near-term solvency risk. While the company generates strong free cash flow of $118.2M (29.5% margin), persistent operating losses, negative interest coverage (-31.3x), and inability to cover debt service from operations present serious headwinds. Cash flow generation must accelerate materially to avoid covenant violations or refinancing distress.
Why Buy TXO Partners, L.P. Stock? TXO Key Strengths
- Exceptional free cash flow generation ($118.2M) with 29.5% FCF margin despite unprofitability
- Substantial asset base ($1.4B) provides liquidation value backstop
- Operating cash flow significantly exceeds capital requirements, indicating core operations are cash-generative
TXO Stock Risks: TXO Partners, L.P. Investment Risks
- Severe liquidity crisis: current ratio of 0.62x indicates current liabilities exceed current assets by 60%, creating imminent covenant violation and refinancing risk
- Chronic unprofitability with -5.4% net margin and -7.6% operating margin; negative interest coverage ratio (-31.3x) means debt cannot be serviced from operating earnings
- Massive debt burden ($291.1M) with minimal cash reserves ($9.4M) creates structural vulnerability to commodity price downturns or operational disruptions
Key Metrics to Watch
- Quarterly free cash flow trends and covenant compliance status
- Cash balance trajectory and debt refinancing capacity in commodity downturn scenario
- Operating margin improvement path - when/if company returns to profitability
TXO Partners, L.P. (TXO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 29.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
TXO Profit Margin, ROE & Profitability Analysis
TXO vs Energy Sector: How TXO Partners, L.P. Compares
How TXO Partners, L.P. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is TXO Partners, L.P. Stock Overvalued? TXO Valuation Analysis 2026
Based on fundamental analysis, TXO Partners, L.P. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
TXO Partners, L.P. Balance Sheet: TXO Debt, Cash & Liquidity
TXO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: TXO Partners, L.P.'s revenue has declined by 19% over the 5-year period, indicating business contraction. The most recent EPS of $-3.44 indicates the company is currently unprofitable.
TXO Revenue Growth, EPS Growth & YoY Performance
TXO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $69.3M | $203.0K | $0.01 |
| Q2 2025 | $57.0M | -$135.0K | $0.00 |
| Q1 2025 | $68.5M | $2.4M | $0.06 |
| Q3 2024 | $69.3M | $203.0K | $0.01 |
| Q2 2024 | $57.0M | -$2.5M | $-0.08 |
| Q1 2024 | $68.5M | $10.3M | $0.33 |
| Q3 2023 | $74.9M | $8.5M | $0.27 |
| Q2 2023 | $67.3M | -$2.5M | $-0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
TXO Partners, L.P. Dividends, Buybacks & Capital Allocation
TXO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for TXO Partners, L.P. (CIK: 0001559432)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TXO
What is the AI rating for TXO?
TXO Partners, L.P. (TXO) has an AI rating of SELL with 74% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TXO's key strengths?
Claude: Exceptional free cash flow generation ($118.2M) with 29.5% FCF margin despite unprofitability. Substantial asset base ($1.4B) provides liquidation value backstop.
What are the risks of investing in TXO?
Claude: Severe liquidity crisis: current ratio of 0.62x indicates current liabilities exceed current assets by 60%, creating imminent covenant violation and refinancing risk. Chronic unprofitability with -5.4% net margin and -7.6% operating margin; negative interest coverage ratio (-31.3x) means debt cannot be serviced from operating earnings.
What is TXO's revenue and growth?
TXO Partners, L.P. reported revenue of $401.0M.
Does TXO pay dividends?
TXO Partners, L.P. does not currently pay dividends.
Where can I find TXO SEC filings?
Official SEC filings for TXO Partners, L.P. (CIK: 0001559432) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TXO's EPS?
TXO Partners, L.P. has a diluted EPS of $-0.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TXO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, TXO Partners, L.P. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TXO stock overvalued or undervalued?
Valuation metrics for TXO: ROE of N/A (sector avg: 14%), net margin of -5.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy TXO stock in 2026?
Our dual AI analysis gives TXO Partners, L.P. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TXO's free cash flow?
TXO Partners, L.P.'s operating cash flow is $118.2M, with capital expenditures of N/A. FCF margin is 29.5%.
How does TXO compare to other Energy stocks?
Vs Energy sector averages: Net margin -5.4% (avg: 12%), ROE N/A (avg: 14%), current ratio 0.62 (avg: 1.3).