FORT WORTH, Texas–Txo Partners, L.P. (NYSE: TXO) is reinforcing its commitment to delivering value to its investors through strategic development of its natural gas assets. As a natural resources production company, TXO Partners is structured to provide ongoing cash returns while focusing on long-term growth. This approach is underpinned by a portfolio of long-life, low-risk properties and robust financial management.
Bob R. Simpson, Chairman and CEO, highlighted the company’s strategic vision: “TXO has cultivated a strong portfolio of oil and gas assets with significant development potential. Our confidence in these assets is the bedrock of our commitment to providing premium distributions.” He further elaborated on a promising new development: “Our technical team has identified a remarkable opportunity within TXO’s extensive operated production base – the Mancos Shale. This emerging natural gas field represents a substantial growth area for TXO Partners.”
The Mancos Shale: A Game Changer for TXO Partners
TXO Partners holds a strategically important 58,500 contiguous-acre position in the Mancos Shale, already held by production. The company estimates this target area to contain nearly 3 trillion cubic feet equivalent (Tcfe) of natural gas potential. This vast resource could potentially increase TXO Partners’ total reserve base by up to five times on an oil equivalent basis, marking a transformative opportunity for the company. The development of this project is strategically timed to capitalize on anticipated favorable natural gas prices.
Gary D. Simpson, President of Production and Development, emphasized the impact of this project: “The Mancos Shale development is poised to be a game-changer for TXO Partners’ reserve holdings and future production capacity. Our acreage and operational footprint are ideally positioned within this play. Positive results from offset drilling on adjacent acreage validate the potential of this area.”
Strategic Phase 1 Development
TXO Partners is taking a measured and strategic approach to developing the Mancos Shale. The initial focus is on a tactical 3,520-acre block, representing approximately 6% of their total Mancos position. This Phase 1 development is designed to efficiently assess and monetize the reserves.
Internal engineering estimates for this initial phase are substantial. TXO Partners anticipates this single block to hold between 200 to 300 billion cubic feet (Bcf) of natural gas. With an estimated 25 Bcfe per well, this phase alone has the potential to almost double the company’s existing natural gas reserves. Critically, TXO Partners’ acreage is held by production, eliminating leasehold expiration concerns and providing flexibility in development timing and pace.
“We intend to develop and monetize this high-impact shale project at an economically advantageous time and pace,” Gary D. Simpson stated. “We believe this project will generate significant value for TXO Partners and our unitholders.”
Resource Potential and Infrastructure Advantages
The overall San Juan Basin Mancos Shale play is estimated to hold a natural gas resource potential of 3 Tcfe across TXO Partners’ 58,500 acres. This substantial resource base is further enhanced by TXO’s operational advantages within the basin. These advantages include existing water rights, company-owned surface and saltwater disposal (SWD) infrastructure, and optionality for access to key gas gathering systems. These factors contribute to efficient and cost-effective development of the Mancos Shale.
TXO Partners: A Foundation Built on Strategic Assets
TXO Partners, L.P. is a master limited partnership (MLP) focused on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves across North America. The company’s current asset base is strategically concentrated in key basins, including the Permian Basin in West Texas and New Mexico, the San Juan Basin in New Mexico and Colorado, and the Williston Basin in Montana and North Dakota. The addition of the Mancos Shale opportunity further strengthens TXO Partners’ portfolio and positions the company for continued growth and value creation for its investors.
Forward-Looking Statements
It is important to note that this release contains forward-looking statements regarding future expectations and potential outcomes. These statements are based on current beliefs and information available to management and are subject to various risks and uncertainties. Actual results may differ materially. Investors are encouraged to review TXO Partners’ filings with the SEC for a comprehensive understanding of these risks and uncertainties. These filings, including the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, provide detailed information about TXO Partners and potential investment considerations.
Contact Information
For further information, please contact TXO Partners:
Brent W. Clum
President, Business Operations & CFO
817.334.7800
[email protected]
