TXO Energy Partners LP, a US oil and gas production company in the Permian and San Juan Basins, announced terms for its IPO on Wednesday.
The Fort Worth, TX-based company plans to raise $100 million by offering 5 million common units at a price range of $19 to $21. At the midpoint of the proposed range, TXO Energy Partners LP would command a market value of $600 million. TXO plans to issue a quarterly dividend.
The company is focused primarily on enhancing the development and operation of producing properties, and its current acreage positions are concentrated in the Permian Basin of West Texas and New Mexico, and the San Juan Basin of New Mexico and Colorado. As of December 31, 2021, TXO Energy Partner's assets consisted of approximately 846,000 gross (370,000 net) leasehold and mineral acres, with approximately 130 million Boe of proved reserves. In the first nine months of 2022, the company produced an average of approximately 23,265 Boe per day, approximately 70% of which came from assets operated by the company.
TXO Energy Partners LP was founded in 2012 and booked $344 million in revenue for the 12 months ended September 30, 2022. It plans to list on the NYSE under the symbol TXO. Raymond James, Stifel, Janney Montgomery Scott, and Capital One Securities are the joint bookrunners on the deal. It is expected to price during the week of January 23, 2023.
