TXO Energy Partners, L.P. (MorningStar Partners, L.P.)
(Note: TXO Energy Partners, L.P., priced its IPO on Jan. 26, 2023, at $20.00 – the mid-point of its $19.00-to-$21.00 range – on 5.0 million common units to raise $100 million. The IPO was priced in sync with the terms in its prospectus. The company was formerly knowns as Morningstar Partners L.P. TXO Energy Partners filed its S-1/A on Jan. 18, 2023, disclosing terms for its unit IPO: 5.0 million units at $19.00 to $21.00 each to raise $100.0 million. A reverse unit split on a 1-for-25.33 reverse split ratio will take effect before the IPO closes. TXO Energy Partners (MorningStar Partners L.P.) filed its S-1 on Nov. 17, 2022: This is an IPO of common units representing limited partner interests. The company submitted confidential IPO documents to the SEC on July 14, 2022.)
We are focused on the acquisition, development, optimization and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. Our management team has significant industry experience acquiring and exploiting conventional oil and natural gas properties in multiple resource plays and basins. As a result, our operations focus primarily on enhancing the development and operation of producing properties through our concentration on efficiency and optimizing exploitation of current wells. Our 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, each of which we believe is characterized by low geologic risk, low decline rates and high recoveries relative to drilling and completion costs.
As of Dec. 31, 2021, our assets consisted of approximately 846,000 gross (370,000 net) leasehold and mineral acres located primarily in the Permian Basin and San Juan Basin. As of Dec. 31, 2021, our total estimated proved reserves were approximately 130 MMBoe, of which approximately 37% were oil and approximately 82% were proved developed, both on a Boe basis. In the first nine months of 2022, we produced an average of approximately 23,265 Boe per day, approximately 70% of which came from assets operated by us.
The members of our management team have an average of 32 years’ experience in the oil and gas industry and previously held executive roles at XTO Energy Inc. (“XTO”). Our management team has successfully executed on a strategy of acquiring and exploiting long-lived and low decline assets for more than 30 years, completing hundreds of acquisitions totaling over $15 billion. Additionally, our Chief Executive Officer, Bob Simpson, has a greater than 45-year history in the oil and gas industry. Mr. Simpson founded Cross Timbers Oil company in 1986 (subsequently named XTO Energy) and served as Chief Executive Officer and Chairman over the life of the company, culminating with a sale to ExxonMobil Corporation (“Exxon”) for $41 billion in 2010. Additionally our management team has collectively invested more than $500 million in us since our inception. We believe our management team has the experience, expertise and commitment to create significant value for our unitholders in the form of cash distributions combined with growth in revenues and production. Certain members of our existing management team were acting or former officers of Southland Royalty Company LLC (“Southland”) when it voluntarily filed for Chapter 11 bankruptcy protection on January 27, 2020. Please see “Management—Southland Bankruptcy” for more information.
|Industry:||CRUDE PETROLEUM & NATURAL GAS|
|Address||400 West 7th Street Fort Worth, Texas 76102|
|Phone Number||(817) 334-7800|
|View Prospectus:||TXO Energy Partners, L.P. (MorningStar Partners, L.P.)|
|Revenues||$343.78 mil (last 12 months)|
|Net Income||$56.49 mil (last 12 months)|
|Price range||$20.00 - $20.00|
|Est. $ Volume||$100.0 mil|
|Manager / Joint Managers||Raymond James/ Stifel/ Janney Montgomery Scott/ Capital One Securities|
|Expected To Trade:||1/27/2023|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|