TXO Partners slides on $175 mln equity raise for oil and gas assets acquisition

Raymond James Financial

14/05/2025 14:14

**  Shares of TXO Partners TXO.N down 16% premarket to $14.86 after acquisition-related equity offering prices

** TXO set to snap 6-session winning streak

** Fort Worth, Texas-based E&P firm sells ~11.7 mln common units at $15 for $175 mln gross proceeds

** Offering price is 15.2% discount to stock's last close

** It plans to use net proceeds to fund $475 mln purchase of certain oil, gas and mineral assets owned by White Rock Energy, which are located in the Williston Basin of Montana and North Dakota

** If pending acquisition, expected to close in Q3 2025, is not completed, offering proceeds will be used to repay debt and for general purposes, co said

** Raymond James and Stifel acting as jt bookrunners for equity offering

** With ~41.2 mln units outstanding, TXO has roughly $728 mln market cap

**  Through Tues, TXO up 5% YTD

** Avg rating among 4 analysts is "strongbuy" and median PT is $22.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))