TXO Partners, L.P. Announces First Quarter 2026 Distribution, Strategic Execution, and Outlook

Key Highlights:

• Declared Q1 2026 Distribution: TXO Partners, L.P. (NYSE: TXO) announced a cash distribution of \$0.36 per common unit for the first quarter ended March 31, 2026.
• Distribution Timeline: The distribution will be paid on May 22, 2026 to unitholders of record as of the close of trading on May 15, 2026.
• Operational Strength: The company continues to demonstrate robust operational performance, particularly in the Williston Basin, with 2025 development activities performing above expectations.
• 2026 Capital Investment: TXO plans to execute approximately \$70 million in capital investments in 2026, with more than 80% allocated to Williston Basin development.
• Cost Discipline and Cash Flow: Strong cost management and prudent capital allocation have bolstered cash available for distribution, supported by a fully hedged position for 2026.
• Balance Sheet Initiatives: The company expects to close previously announced divestitures in Q2 2026, aiming to further strengthen its balance sheet.
• Tax Notice for Foreign Unitholders: 100% of the distribution is considered effectively connected income subject to U.S. federal withholding at the highest applicable rate. Brokers/nominees, not TXO, are responsible for withholding.
• Forward-Looking Statements: Management expressed confidence in continued strong cash flow into 2027, but also highlighted several risks, including commodity price volatility and operational uncertainties.

Detailed Report

Fort Worth, TX, May 4, 2026 – TXO Partners, L.P., a master limited partnership focused on acquiring and developing conventional oil, natural gas, and NGL reserves in North America, has declared a first quarter 2026 distribution of \$0.36 per common unit. The payout is scheduled for May 22, 2026, for unitholders of record as of May 15, 2026.

Operational and Strategic Update

Co-Chief Executive Officer Gary D. Simpson emphasized the strong operational results, particularly in the Williston Basin, stating, “Development activities from 2025 continue to perform well above our expectations. We look forward to executing our 2026 plan, which includes approximately \$70 million in capital investments, with the vast majority targeted at the Williston Basin.”

Co-CEO and CFO Brent W. Clum highlighted the company’s focus on cost discipline and prudent capital allocation, which drove strong cash available for distributions. Following a significant acquisition in 2025, the company has fully hedged its 2026 exposure, demonstrating a commitment to protecting both the balance sheet and distributions. Clum also noted that the company aims to close previously announced divestitures in Q2 2026, which should further enhance the financial position.

Financial and Tax Information

The company’s financial statements and footnotes for Q1 2026 will be available in its Quarterly Report on Form 10-Q, which is being filed with the SEC and will be accessible on both the TXO Investor Relations website and SEC website.

Important Tax Notice: For foreign unitholders, brokers and nominees must treat 100% of the distribution as income effectively connected with a U.S. trade or business, subject to withholding at the highest applicable federal tax rate. Distributions are treated as in excess of cumulative net income for purposes of tax withholding, and nominees, not TXO, are responsible for this withholding.

Outlook and Forward-Looking Statements

Management expressed confidence in the company’s ability to generate robust cash flow into 2027, execute its capital program, and realize benefits from pending asset sales. However, they also cautioned that actual results could differ due to a range of risks, including volatility in oil and gas prices, operational risks, the ability to realize benefits from recent acquisitions and drilling, uncertainties about reserves, and other factors detailed in TXO’s SEC filings.

Potentially Price-Sensitive Information for Shareholders

• Distribution Announcement: The maintained payout of \$0.36 per unit, following a large acquisition and robust operational results, signals management’s confidence in the company’s financial health and future cash generation.
• Strategic Focus on Williston Basin: The allocation of over 80% of 2026 capital spending to Williston development could impact future production and earnings growth.
• Divestitures: The expected closing of previously announced asset sales in Q2 2026 is a key event that could materially improve the balance sheet and financial flexibility.
• Full Hedge Position: The company’s full hedge for 2026 provides a buffer against commodity price volatility, supporting distribution stability.
• Tax Treatment for Foreign Holders: The withholding requirements for foreign holders may affect after-tax returns and could influence trading in the units.
• Forward-Looking Risks: The explicit discussion of risks and uncertainties, including the impact of commodity prices and ability to execute planned initiatives, is important for shareholders assessing future value and volatility.

About TXO Partners, L.P.

TXO Partners, L.P. owns and operates oil and gas assets concentrated in the Permian Basin (West Texas and New Mexico), the San Juan Basin (New Mexico and Colorado), and the Williston Basin (Montana and North Dakota). The partnership’s strategy emphasizes acquisition, development, and optimization of conventional energy reserves.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied. Investors should review official filings and consult their financial advisors before making investment decisions.

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