TXO Partners, L.P. Announces Entry Into Definitive Agreements for Assets in the Greater Williston Basin
June 25 2024 - 4:15PM
Business Wire
TXO Partners, L.P. (NYSE: TXO) (“TXO”) announced today that it
has entered into separate purchase agreements with Eagle Mountain
Energy Partners (A Pearl Energy Investments Portfolio Company) and
a private company to purchase assets in the Elm Coulee field in
Montana and the Russian Creek field in North Dakota for total cash
considerations of $243 million and 2.5 million common units of TXO,
subject to customary purchase price adjustments.
“TXO uniquely operates as a production and distribution entity,
which focuses on cash flow from our legacy assets. As significant
owners, our leadership is focused, determined and disciplined,”
stated Bob R. Simpson, Chairman and CEO. “This acquisition in the
Elm Coulee field represents the return to a region where our team
previously had success. We expect the significant oil-in-place
targets, with the application of our technology, to create equity
value while delivering high returns.”
“With an eye to a stronger future, we have diligently looked at
many candidates in the last seventeen months as a public company.
We believe the combination of these two assets fits perfectly with
our expertise and capital allocation strategy. These transactions
provide the right blend of low decline rate, high margin and growth
potential for TXO,” commented Brent Clum, the President of Business
Operations and CFO. “We expect these assets to be accretive on
every relevant measure, but most importantly to cash flow and
distributions. It’s a natural evolution to creating equity
value.”
Each of the transactions are expected to close in the third
quarter of 2024, subject to satisfaction of customary closing
conditions. If consummated, the transactions are expected to add
approximately 4,500 daily barrels of oil equivalent production
(~90% liquids) and Proved Developed reserves of approximately
17,000 Mboe, as of April 1, 2024 as determined by Cawley, Gillespie
& Associates using SEC pricing.
TXO’s counsel in connection with the Acquisitions is Welborn
Sullivan Meck & Tooley, P.C. EMEP’s financial advisor for the
sale of its assets to TXO is Jefferies LLC and its counsel is
O'Melveny & Myers LLP.
About TXO Partners, L.P. TXO Partners, L.P. is a master
limited partnership focused on the acquisition, development,
optimization and exploitation of conventional oil, natural gas, and
natural gas liquid reserves in North America. TXO’s current acreage
positions are concentrated in the Permian Basin of West Texas and
New Mexico and the San Juan Basin of New Mexico and Colorado.
Cautionary Statement Concerning Forward-Looking
Statements Certain statements contained in this press release
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include the words such as “may,”
“assume,” “forecast,” “could,” “should,” “will,” “plan,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “project,” “budget”
and similar expressions, although not all forward-looking
statements contain such identifying words. These forward-looking
statements include statements regarding the pending acquisitions,
including our ability to satisfy the conditions to closing and the
expected timing and benefits of the acquisitions, our financing of
the acquisitions, our strategy, descriptions of future operations,
prospects, plans and objectives of management, future cash flow and
distributions and our ability to execute our strategy, . These
forward-looking statements are based on management’s current
belief, based on currently available information, as to the outcome
and timing of future events at the time such statement was made,
and it is possible that the results described in this press release
will not be achieved. Our assumptions and future performance are
subject to a wide range of business risks, uncertainties and
factors, including, without limitation, the following: our ability
to consummate the proposed acquisitions on the terms currently
contemplated; our ability to meet distribution expectations and
projections; the volatility of oil, natural gas and NGL prices; our
ability to safely and efficiently operate TXO’s assets;
uncertainties about our estimated oil, natural gas and NGL
reserves, including the impact of commodity price declines on the
economic producibility of such reserves, and in projecting future
rates of production; and the risks and other factors disclosed in
TXO’s filings with the SEC, including its Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form
8-K.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, TXO does not
undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240625140211/en/
TXO Partners Brent W. Clum President, Business Operations &
CFO 817.334.7800 ir@txopartners.com
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