Key Highlights

  • TXO shares rose 6.54% pre-market to $14.50 as Crude Oil recovered above $98.
  • Crude fell more than 6% on Monday on signs of progress in US-Iran talks.
  • Director Bob Simpson bought 125,000 shares, and the quarterly distribution is $0.40.

TXO Partners (NYSE:TXO) shares rose 6.54% to $14.50 in pre-market today, up $0.89 from the prior close of $13.61, which followed a 2.99% decline on Monday. The move tracks crude oil, which climbed above $98 per barrel on Tuesday and recovered part of Monday's losses. The energy sector ETF XLE closed down roughly 4% on Monday and is indicated higher pre-market.

TXO Partners, a Fort Worth, Texas-based Master Limited Partnership founded in 2012, acquires, develops, optimizes and exploits conventional oil, Natural Gas and natural gas liquids reserves in North America. Its acreage is concentrated in the Permian Basin, the San Juan Basin and the Williston Basin, and it expanded its footprint in 2024 by acquiring White Rock Energy assets. It follows a production and distribution model, has about 228 employees and is led by Co-Chief Executive Officers Brent Clum and Gary Simpson, with founder Bob R. Simpson as Chairman.

Crude Oil Backdrop: US-Iran Talks, Qeshm Island Reports and Midterm Elections

The US oil benchmark fell more than 6% on Monday after signs of progress in US-Iran talks eased concerns about further Supply disruptions. Crude then recovered above $98 per barrel following reports of a US attack on Iran's Qeshm Island, described as the latest in a series of limited military operations attributed to Washington while diplomatic negotiations continue.

Iran's Foreign Ministry spokesperson Esmail Baghaei said the ball is in the US court regarding a potential agreement to end the conflict, while President Trump said in a Social Media post that Tehran was eager to reach a settlement as soon as possible. The developments come as the US midterm elections get underway, with the administration and the Republican Party facing increasing political pressure over rising energy costs tied to the Iran conflict.

Distribution, Insider Purchase and Analyst Data

TXO's raised quarterly distribution of $0.40 represents a Yield of about 11%, and the stock has a Dividend Yield of 10.36%. Director Bob Simpson recently purchased 125,000 shares, and short interest fell 44.5% in mid-October. The consensus rating is Buy with an average price target of $19, including targets of $22 from Stephens and $17 from Stifel.

The stock has a forward price-to-earnings ratio of 16.28, trailing Earnings per share of negative $0.77 and a 52-week range of $10.12 to $15.58.

US-Iran Negotiations and the Direction of Crude Prices Are the Next Markers

TXO shares are higher pre-market as crude oil recovers, after a decline on Monday that followed a drop in the US oil benchmark. The next items to follow are developments in US-Iran negotiations, the path of crude prices above $98 per barrel and the outcome of the midterm elections, which are underway.