Slide 1: TXO Partners, L.P. Investor Presentation May 2025
TXO Partners, L.P. Investor Presentation May 2025
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements This presentation contains “forward-looking” statements, as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management’s beliefs and assumptions an
Slide 3: TXO Partners – Unique MLP in Energy
TXO Partners – Unique MLP in Energy • Owners of long-lived legacy properties with robust / strong cash flows • Vision for long-term distribution model • Building value with the “right assets” over time • Management and Board are aligned as owners with ~32%(1) of the units 3 (1) As of 5/1/2025.
Slide 4: Stable Return of Capital Program = Cash Distribution
Stable Return of Capital Program = Cash Distribution Peer leading decline rates provide relatively stable distributable cash flow $5.10 $0.61 $0.61 $0.58 $0.57 $0.65 $0.58 $0.52 $0.48 $0.50 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Total Quarterly Distributions per Unit
Slide 5: Introduction to TXO Partners
Introduction to TXO Partners Low-decline, conventional assets allow the Company to Colorado distribute a substantial portion of its cash flow from operations Williston Basin • TXO is a yield-oriented independent oil and natural gas company headquartered in Fort Worth, TX with ~1,120,000 gross acres
Slide 6: Strategic Acquisition of White Rock Energy in the Williston Basin
Strategic Acquisition of White Rock Energy in the Williston Basin A definitive asset acquisition agreement in the Williston Basin • Closing expected to occur by the end of July 2025 • The combined acquisition assets PDP + 2025 development program(1) are expected to have a three-year average annual d
Slide 7: Key Investment Highlights
Key Investment Highlights Rationale Highlights Bolt-On to Existing ~92,400 Makes Our Company Better Williston Position Prolific Oil Province Net Acres Expected to be immediately accretive to all relevant metrics and increases liquids mix 6,754 Boe/d(1) ~75%(2) 2025E Net Production Oil Fits Our F
Slide 8: Pending Acquisition Impacts
Pending Acquisition Impacts Williston Basin addition builds on low-decline, PDP-heavy assets • These oil assets are expected to significantly increase cash flow and allow for further distributions (1) Pending Asset Acquisition (3) TXO Standalone Combined (based on 2025E production)(2) Average Daily
Slide 9: Existing Business Update
Existing Busine = Update i igo
Slide 10: Williston Basin
Williston Basin Legacy assets • Net acres: ~178,000 • 2024 production(1): 5.7 MBoe/d (78% oil, 89% liquids) Production (MBoe/d) • Base decline rate(2): ~17% 6.0 5.7 5.0 Williston Acreage Map 4.0 3.0 2.0 1.0 0.0 2024 Note: Please see the Appendix for a definition and reconciliation to the most direct
Slide 11: Permian Basin
Permian Basin Diverse Permian asset base provides exposure to the premier onshore US oil and gas basin • Numerous upside opportunities are available through infill drilling, waterflood expansion and recompletions Production (MBoe/d) • Net acres: ~77,000 10.0 • 2024 production: 7.0 MBoe/d (84% oil, 9
Slide 12: San Juan Basin
San Juan Basin Low decline San Juan Basin assets provide exposure to a leading natural gas play • Net acres: ~246,000 • 2024 production: 13.1 MBoe/d (1% oil, 17% liquids) Production (MBoe/d) • Base decline rate(1): ~8% 16.0 • Mancos Shale properties offer significant potential 15.0 14.6 upside that
Slide 13: San Juan Basin – Mancos Shale Play
San Juan Basin – Mancos Shale Play Significant Opportunities Across 58,500 acres Core Mancos with Infrastructure Advantages San Juan Basin Within a prime target area, TXO has water rights, company owned surface & SWD, and optionality for key gas gathering systems. Phase 1 Summary: • ~3,520 ac = ~6%
Slide 14: Stable, Long-Lived, Conventional Asset Base with Low Production Decline Rates
Stable, Long-Lived, Conventional Asset Base with Low Production Decline Rates Peer leading decline rates provide stable and generally predictable free cash flow Base TXO NTM Decline Rate vs. Peers(1) 35% 36% 31% 25% 22% 20% 9% 10% 5% Peer 1 TXO(2) Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 • L
Slide 15: Financial Strategies
Financial Strategies TXO’s financial profile supports substantial free cash flow High Margin and • Q1 2025 development costs were ~28% of Cash Available for Distribution(1) Efficient Capital • Full-year development costs are budgeted to increase to ~$65MM to sustain relatively Program flat productio
Slide 16: Investment Considerations and Opportunity Highlights
Investment Considerations and Opportunity Highlights Experienced and personally invested management team with an 1 extensive track record of value creation • Top-tier management with significant industry experience in acquiring and exploiting conventional oil and natural gas properties in multiple r
Slide 17: Appendix
Appendix
Slide 18: Consolidated Reserves & Value Summary
TXO Partners, L.P. Consolidated Reserves & Value Summary Reserve Net Oil Net Gas Net NGL Net Equiv. Capital PV-10 Category (MMbbls) (Bcf) (MMbbls) (MMBoe) ($MM) ($MM) PDP 36.7 195.6 13.1 82.4 $0.0 $849.5 PNP 1.2 0.4 0.1 1.3 4.4 29.6 PUD 9.3 1.0 0.6 10.1 52.9 153.4 Total Proved 47.2 197.0 13.8 93.8 $
Slide 19: Hedge Summary
Hedge Summary 2Q-4Q 2025 1Q 2026 2Q 2026 3Q 2026 4Q 2026 1Q 2027 Oil: WTI (Bbl/d) 6,000 3,000 3,000 2,000 375 - Swap Price ($/Bbl) $67.39 $70.57 $70.57 $70.49 $64.16 $0.00 Gas: Henry Hub (MMBtu/d) 50,000 50,000 35,000 42,500 42,500 42,500 Swap Price ($/MMBtu) $3.21 $3.21 $3.25 $3.90 $3.90 $4.36 EPSJ
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures TXO Partners 2025 2024 ($ in thousands) Q1 Q4 Q3 Q2 Q1 Net Income $2,416 $10,218 $203 $2,808 $10,267 Interest expense 3,621 3,988 1,860 1,049 976 Interest income (103) (131) (700) (122) (125) Depreciation, depletion and amortization 21,429 17,987 13,573
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDAX We include in this presentation the non-GAAP financial measure Adjusted EBITDAX and provide our calculation of Adjusted EBITDAX and a reconciliation of Adjusted EBITDAX to net income (loss), our most directly comparable financial measures calculated and p
Slide 22: Experienced and Personally Invested Management Team with an Extensive Track Record of Value Creation
Experienced and Personally Invested Management Team with an Extensive Track Record of Value Creation Executives Bob Simpson Brent Clum Gary Simpson Scott Agosta Keith Hutton Chairman, Director Co-Chief Executive Officer, Co-Chief Executive Chief Accounting Officer Executive Vice President, CFO, Dire