TXO Partners, L.P. Common Units Representing Limited Partner Interests (TXO) Covered Calls

TXO Partners, L.P. is an independent energy master limited partnership focused on the acquisition, development, and exploitation of conventional oil and natural gas reserves. The company operates primarily in the Permian Basin, the San Juan Basin, and the Williston Basin. Its strategy centers on maximizing the value of long-lived, low-decline assets to provide stable production and consistent cash distributions to its unitholders.

You can sell covered calls on TXO Partners, L.P. Common Units Representing Limited Partner Interests to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for TXO (prices last updated Tue 4:16 PM ET):

TXO Partners, L.P. Common Units Representing Limited Partner Interests (TXO) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
12.67 -0.04 12.00 13.00 102K 30 0.7
Covered Calls For TXO Partners, L.P. Common Units Representing Limited Partner Interests (TXO)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Mar 20 12.5 0.20 12.80 -2.3% -33.6%
Apr 17 12.5 0.35 12.65 -1.2% -8.3%
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Core Business and Products

TXO Partners, L.P. operates as a production and distribution-focused master limited partnership (MLP) in the North American energy sector. The company’s primary business involves the optimization of conventional oil, natural gas, and natural gas liquid (NGL) reserves. Unlike many unconventional producers, TXO emphasizes "legacy" assets—properties that have produced for decades and possess well-understood geology. This focus on conventional reservoirs allows the company to maintain low production decline rates and predictable capital expenditure requirements.

The company’s asset portfolio is strategically clustered in three prolific regions: the Permian Basin of West Texas and New Mexico, the San Juan Basin of New Mexico and Colorado, and the Williston Basin of Montana and North Dakota. These areas provide a diverse mix of oil-weighted and gas-weighted plays, including significant positions in the Elm Coulee field and the Mancos Shale. By utilizing a combination of new horizontal drilling and the re-fracturing of existing wellbores, TXO seeks to extend the economic life of its properties while generating the steady cash flow necessary to support its distribution model.

Competitive Landscape

The upstream energy industry is highly fragmented, with TXO Partners competing against a vast array of independent exploration and production (E&P) firms and larger integrated energy companies. Because of its MLP structure and focus on conventional assets, TXO often competes for investor capital with other high-yield energy vehicles and royalty trusts. Key regional competitors in the Permian and Williston Basins include Northern Oil and Gas and Crescent Energy, both of which target similar resource plays with a focus on cash flow and scale.

Other notable competitors in the independent E&P space include HighPeak Energy, SandRidge Energy, and SM Energy. While these firms may vary in their balance of conventional versus unconventional assets, they all vie for oilfield services, technical talent, and strategic acquisitions within the core U.S. basins. TXO differentiates itself through its "disciplined stewardship" model, prioritizing low-risk exploitation over high-cost exploration, which appeals to income-oriented investors seeking exposure to commodity prices with lower geologic risk.

Strategic Outlook and Innovation

TXO Partners’ strategic outlook is defined by its commitment to maintaining a "distribution-first" financial framework. The company is currently focused on a multi-year redevelopment program in the Elm Coulee field, which it identifies as its primary development asset. This involves leveraging modern drilling techniques to unlock incremental value from mature fields. Additionally, the company is preparing for long-term growth in the Mancos Shale, developing the necessary pipeline and water infrastructure to align with rising natural gas and LNG demand.

Innovation at TXO is primarily operational, focusing on "exploitation engineering" to maximize hydrocarbon recovery from existing wells. This includes the application of advanced data analytics to optimize wellbore placement and completion designs in legacy formations. Management remains focused on a "backloaded" capital program intended to bring new production online while maintaining a conservative debt-to-equity profile. By balancing opportunistic acquisitions with organic field optimization, TXO aims to provide durable distributions and long-term value for its unitholders across various commodity price cycles.